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PSPD    People's Solidarity for Participatory Democracy

  • Socio-Economic
  • 2010.03.24
  • 2329

Lee Family’s Aggressive Attitude to Dominate Samsung Will Cause a Huge Crisis on Samsung


On the 24th, there was a report announcing Lee Kun-hee , the former president of Samsung was reinstated in the management as a president of Samsung Electronic. Only twenty three months have passed since the strategy planning office was dissolved and he resigned dishonorably due to the illegal succession of the management rights of the company to his son Jaeyong Lee; the resignation was a hot-issue for ten years. It became clear that his resignation was a “political gesture” for a temporary remedy with the expectation of amicable dealing in the legal processes. The People’s Economic Committee at the People’s Solidarity for Participatory Democracy(PSPD) says that Mr. Lee’s reinstatement proved that his promise "I will bear all burden of my faults from the past." to the Korean citizens is void and the reformation of the Samsung Electronic is unrealistic.

His particular pardon happened four months after the Supreme Court’s decision was made. Immediately afterwards, in the end of 2009, the scenario of Geunhee Lee’s returning to Samsung Electronic was realized. Ten days after he was pardoned, he participated in the electric appliance display show held in Las Vegas. Choi Jisung , a representative director, accelerated Gunhee Lee’s reinstatement by stating to newspaper reporters that “we are considering Mr. Lee's returning to the management.” Eventually, his resignation, his promise to Korean citizens, and his special pardon for the invitation of the Winter Olympic Games were clearly proven to be a part of the scenario for Lee Kun-hee’s reinstatement at Samsung Electronic. The Lee family lied to Korean citizens.

In addition to these, there is more in Samsung’s deceitfulness and lies. In 2008, the former president Lee  Kun-hee claimed that “in order to promote the participation of outside directors who have objective views, I will not elect someone who is directly related to the work of Samsung.” However, Mr. Lee broke his promise by electing Inho Lee, who was a representative director of Shinhan Financial Group, as an outside director of Samsung Electronic on March 19, 2010. Shinhan Investment Corp.,a successor company of Good Morning Shinhan Tower, is one of Shinhan Financial Group’s subsidiary companies. It illegally opened a bank account under another person’s name for Attorney Yongchul Kim, who exposed the Lee family’s illegitimacy. Inho Lee is clearly related to Samsung in terms of duties.

The People’s Economic Committee at the PSPD is warning and fearing Gunhee Lee’s return, the revival of the strategy planning office, which is an unusual corporate management system, and the return of the executives of the strategy planning office, because these things might be linked to reviving the old system. Recently, incarnations of new ideas, which are produced based on the creativity and autonomy of the system, are considered a domain factor that maximizes companies' benefits. Therefore, an old system, which is abnormally managed and controlled by only one owner, could not be a competitive system in the current global market system in the representative name of "the era of smart phone" This is the time that creativity and self-discipline flouring in companies are keenly needed for the creative production beyond individual creativity. We hope that Samsung will realize that maintaining the old system, such as reviving the strategy planning office, is not the right remedy for resolving their current crisis. The Lee family’s ambition to control the coglomerate without any parties’ involvements will lead to the crisis on Samsung rather than “Global Samsung.”

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