Lee Kun-hee
Encyclopedia
Lee Kun-hee is Chairman of Samsung Electronics
. He resigned on April 21, 2008 owing to Samsung Slush funds scandal, but returned on March 24, 2010. Lee has a degree in economics
from Waseda University
in Tokyo
and attended an MBA course at George Washington University
in the United States
in 1966 without earning a degree. He speaks Korean
, English
, and Japanese
. In 1996, Lee became a member of the International Olympic Committee
. With an estimated net worth of $7.4 billion, he and his family rank among the Forbes
richest people in the world. He is the third son of Samsung Group
founder Lee Byung-chull.
An avid sportsman, he was instrumental in the successful third attempt to bring the 2018 Winter Olympics
to Pyeongchang.
On July 16, 2008, The New York Times
reported that the Seoul Central District Court found him guilty on charges of financial wrongdoing and tax evasion. Prosecutors requested that Lee be sentenced to seven years in prison and fined $347 million. The court fined him $109 million and sentenced him to 3 years suspended jail time. Lee has not responded to the verdict.
On December 29, 2009, the South Korean government moved to pardon Lee Kun-hee to help Pyeongchang's bid for hosting the 2018 Winter Olympics
. However, IOC decided to suspend his right to participate any IOC commission meeting for five years.
On March 24, 2010, he announced his return to Samsung Group as its chairman.
was overly focused on producing massive quantities of low-quality goods and that it was not prepared to compete in quality, Lee famously said "Change everything except your wife and kids". The shift is now widely considered a success. One of the group's subsidiaries, Samsung Electronics, is now one of the world's leading developers and producers of semiconductors, and was listed in Fortune magazine's list of the 100 largest corporations in the world in 2007.
, but added that his new goal is to attract talent from all over the world to ensure that Samsung will remain one of the top companies in the world for years.
However, instead of foreign talent, Lee put his own children into key positions at Samsung. As of 2010, his son Lee Jae-yong is President and COO of Samsung Electronics
. Lee Boo-jin, his eldest daughter is President and CEO of Hotel Shilla, a luxury hotel chain, as well as President of Samsung Everland, a theme park and resort operator that is "widely seen as the de facto holding company for the conglomerate" according to Associated Press. His other daughter, Lee Yoon-hyung
, committed suicide in 2005 because he had forbidden her to marry her Korean boyfriend; he did not attend her funeral.
, a company holding businesses in food, beverages and entertainment. His second eldest brother's sons ran Saehan Media, one of the largest blank media producers. His older sister is the owner of Hansol
Group, the country's largest paper manufacturer and producer of electronics and telecommunications. One of his sisters is married to Koo Ja-hak, brother of former chairman of the LG Group
and himself a former chairman of LG Semiconductor. He is currently running one of the largest food services firms in Korea. His younger sister, Lee Myung Hee is currently the chairman of the Shinsegae Group, the largest retail company in Korea, with major holdings such as the Shinsegae Department Store
s and E-Mart.
In late 2005, Lee spent time being tested for cancer at the MD Anderson Medical Center in Houston, Texas.
Samsung Electronics
Samsung Electronics is a South Korean multinational electronics and information technology company headquartered in Samsung Town, Seoul...
. He resigned on April 21, 2008 owing to Samsung Slush funds scandal, but returned on March 24, 2010. Lee has a degree in economics
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
from Waseda University
Waseda University
, abbreviated as , is one of the most prestigious private universities in Japan and Asia. Its main campuses are located in the northern part of Shinjuku, Tokyo. Founded in 1882 as Tokyo Senmon Gakko, the institution was renamed "Waseda University" in 1902. It is known for its liberal climate...
in Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...
and attended an MBA course at George Washington University
George Washington University
The George Washington University is a private, coeducational comprehensive university located in Washington, D.C. in the United States...
in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
in 1966 without earning a degree. He speaks Korean
Korean language
Korean is the official language of the country Korea, in both South and North. It is also one of the two official languages in the Yanbian Korean Autonomous Prefecture in People's Republic of China. There are about 78 million Korean speakers worldwide. In the 15th century, a national writing...
, English
English language
English is a West Germanic language that arose in the Anglo-Saxon kingdoms of England and spread into what was to become south-east Scotland under the influence of the Anglian medieval kingdom of Northumbria...
, and Japanese
Japanese language
is a language spoken by over 130 million people in Japan and in Japanese emigrant communities. It is a member of the Japonic language family, which has a number of proposed relationships with other languages, none of which has gained wide acceptance among historical linguists .Japanese is an...
. In 1996, Lee became a member of the International Olympic Committee
International Olympic Committee
The International Olympic Committee is an international corporation based in Lausanne, Switzerland, created by Pierre de Coubertin on 23 June 1894 with Demetrios Vikelas as its first president...
. With an estimated net worth of $7.4 billion, he and his family rank among the Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
richest people in the world. He is the third son of Samsung Group
Samsung Group
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...
founder Lee Byung-chull.
An avid sportsman, he was instrumental in the successful third attempt to bring the 2018 Winter Olympics
2018 Winter Olympics
The 2018 Winter Olympics, officially known as the XXIII Olympic Winter Games, is a winter multi-sport event scheduled to take place in Pyeongchang, South Korea, between 9 and 25 February 2018. The elected host city was announced on 6 July 2011 by the International Olympic Committee , after the...
to Pyeongchang.
Samsung Slush funds scandal
On January 14, 2008, Lee's home and office were raided by the Korean police for an ongoing probe into accusations that Samsung is responsible for a slush fund used to bribe influential prosecutors, judges, and political figures in South Korea. After the second round of questioning by the South Korean prosecutors which occurred on April 11, 2008, Lee was quoted by reporters saying "I am responsible for everything. I will assume full moral and legal responsibility.” This is unlike his statement during his first summon on April 4, 2008 in which he bluntly denied allegations against him for his role in the Samsung Slush Funds scandal. It is believed that Lee is looking for resignation as the CEO of Samsung. On April 21, he officially resigned, and stated: "We, including myself, have caused troubles to the nation with the special probe; I deeply apologise for that, and I'll take full responsibility for everything, both legally and morally."On July 16, 2008, The New York Times
The New York Times
The New York Times is an American daily newspaper founded and continuously published in New York City since 1851. The New York Times has won 106 Pulitzer Prizes, the most of any news organization...
reported that the Seoul Central District Court found him guilty on charges of financial wrongdoing and tax evasion. Prosecutors requested that Lee be sentenced to seven years in prison and fined $347 million. The court fined him $109 million and sentenced him to 3 years suspended jail time. Lee has not responded to the verdict.
On December 29, 2009, the South Korean government moved to pardon Lee Kun-hee to help Pyeongchang's bid for hosting the 2018 Winter Olympics
2018 Winter Olympics
The 2018 Winter Olympics, officially known as the XXIII Olympic Winter Games, is a winter multi-sport event scheduled to take place in Pyeongchang, South Korea, between 9 and 25 February 2018. The elected host city was announced on 6 July 2011 by the International Olympic Committee , after the...
. However, IOC decided to suspend his right to participate any IOC commission meeting for five years.
On March 24, 2010, he announced his return to Samsung Group as its chairman.
Achievements as CEO of Samsung
In the early 1990s, believing that Samsung GroupSamsung Group
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...
was overly focused on producing massive quantities of low-quality goods and that it was not prepared to compete in quality, Lee famously said "Change everything except your wife and kids". The shift is now widely considered a success. One of the group's subsidiaries, Samsung Electronics, is now one of the world's leading developers and producers of semiconductors, and was listed in Fortune magazine's list of the 100 largest corporations in the world in 2007.
Nepotism
In an interview, Lee expressed pride in the fact that Samsung attracts the brightest minds in South KoreaSouth Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
, but added that his new goal is to attract talent from all over the world to ensure that Samsung will remain one of the top companies in the world for years.
However, instead of foreign talent, Lee put his own children into key positions at Samsung. As of 2010, his son Lee Jae-yong is President and COO of Samsung Electronics
Samsung Electronics
Samsung Electronics is a South Korean multinational electronics and information technology company headquartered in Samsung Town, Seoul...
. Lee Boo-jin, his eldest daughter is President and CEO of Hotel Shilla, a luxury hotel chain, as well as President of Samsung Everland, a theme park and resort operator that is "widely seen as the de facto holding company for the conglomerate" according to Associated Press. His other daughter, Lee Yoon-hyung
Lee Yoon-hyung
Lee Yoon-hyung was a South Korean millionaire and daughter of billionaire former Samsung Group chief Lee Kun-hee...
, committed suicide in 2005 because he had forbidden her to marry her Korean boyfriend; he did not attend her funeral.
Personal life
His siblings and some of their children are also executives of major Korean business groups. His eldest brother's son is currently chairman of the CJ GroupCJ Group
CJ Group is a large South Korean conglomerate company. CJ centralized business fields into 4 core business groups, such as food and food service, bio pharma, entertainment and media and home shopping and logistics.-Entertainment & Media:...
, a company holding businesses in food, beverages and entertainment. His second eldest brother's sons ran Saehan Media, one of the largest blank media producers. His older sister is the owner of Hansol
Hansol
Hansol is a South Korean conglomerate, or chaebol. Its main operations are construction, electronics, tourism, chemicals, household interiors, paper products, telecom, and logistics. Hansol used to be a part of Samsung Group, and is still owned by one of the relatives of the Samsung and Shinsegae...
Group, the country's largest paper manufacturer and producer of electronics and telecommunications. One of his sisters is married to Koo Ja-hak, brother of former chairman of the LG Group
LG Group
LG Corp. is the second-largest South Korean conglomerate company following Samsung, and it is headquartered in the LG Twin Towers in Yeouido-dong, Yeongdeungpo-gu, Seoul. LG produces electronics, chemicals, and telecommunications products and operates subsidiaries like LG Electronics, LG Display,...
and himself a former chairman of LG Semiconductor. He is currently running one of the largest food services firms in Korea. His younger sister, Lee Myung Hee is currently the chairman of the Shinsegae Group, the largest retail company in Korea, with major holdings such as the Shinsegae Department Store
Shinsegae
Shinsegae is a South Korean department store franchise, along with several other businesses, headquartering in Seoul, South Korea. The name of Shinsegae literally means "New World" in Korean...
s and E-Mart.
In late 2005, Lee spent time being tested for cancer at the MD Anderson Medical Center in Houston, Texas.
Awards
- In 2004, He received the Legion of Honour from French government.
- In September 2006, Lee received the James A. Van Fleet AwardJames A. Van Fleet AwardThe General James A. Van Fleet Award , given annually since 1995 by The Korea Society, is awarded “to one or more distinguished Koreans or Americans in recognition of their outstanding contributions to the promotion of U.S.-Korea relations.” It is one of the most prestigious awards in the field of...
from the Korea SocietyKorea SocietyThe Korea Society is a private, nonprofit, nonpartisan, 501 organization with individual and corporate members that is dedicated solely to the promotion of greater awareness, understanding and cooperation between the people of the United States and Korea...
.
Quotes
- "One genius can feed millions of others. For the upcoming era where creativity will be the most important driver of business success, we need to hire the best. The economic value of one genius is more than $1 billion."
- "The business world has changed significantly. It is becoming increasingly difficult to foresee what sectors will prosper or opportunities will arise in the future. But if you hire the best and brightest, you will solve whatever issues arise in the future."
- "It is difficult to understand the true dimensions of a problem or a situation when so many things seem to be happening on the surface. This is why I urge my employees to analyze a given situation from various perspectives. This way of thinking allows one to see the true aspects of a situation, which, in turn, allows one to respond wisely."
- "Firing a CEO because his financial performance was poor is simply a bad decision. I've encountered several situations where a CEO once performed poorly in one sector then went on to perform much better elsewhere. This is one of the reasons Japanese corporations were able to compete successfully against US corporations."
External links
- Forbes.com: Forbes World's Richest People
- "Lee Kun-hee's Big Stick", The Korea Times, January 8, 2006.
- "Samsung chairman's office raided as part of inquiry", International Herald Tribune, January 14, 2008.
- "Samsung chairman hints at possible resignation", hanqyere newspaper, April 11, 2008.
- "www.leekunhee.com" Official personal bio
- "South Korea Plans to Pardon Former Samsung Chairman"