Inside Samsung’s Succession Struggle: A Sidelined Son and Imprisoned Tycoon
The succession struggle within Samsung, one of the world’s largest conglomerates, has been a complex and highly publicized saga in South Korea. The Lee family, which has controlled Samsung since its founding as a grocery store in the late 1930s, has faced numerous challenges in maintaining control over the sprawling business empire. This struggle has involved legal battles, family disputes, and high-profile corruption scandals that have captured national attention.
The Lee Family and Samsung’s Rise
Samsung’s founder established the company in the late 1930s, and since then, the Lee family has expanded it into a global powerhouse. The conglomerate now includes diverse sectors such as consumer electronics, insurance, memory chips, construction, and chemicals. The family is often described as the “equivalent of royalty” in South Korea due to their economic influence.
Lee Kun-hee, the youngest son of the founder, was named heir in 1976, a decision that bypassed his two older brothers and set the stage for future family tensions. Under his leadership, Samsung grew significantly during the 1980s and 1990s.
Challenges in Succession and Legal Troubles
Lee Kun-hee’s son, Lee Jae-yong (also known as JY Lee), was groomed for decades to take over Samsung. However, his path to leadership was fraught with difficulties. In 2014, when Lee Kun-hee suffered a heart attack, Lee Jae-yong became acting chairman but faced an unfinished and complicated process to secure family control over Samsung.
The conglomerate’s structure was highly intricate, with dozens of companies linked through cross-shareholdings. Additionally, the family faced an inheritance tax bill exceeding $10 billion, which complicated efforts to maintain control without selling shares and risking dilution of their influence.
Lee Jae-yong’s succession was further complicated by a corruption scandal that emerged in 2016. He was accused of bribery, stock manipulation, and accounting fraud related to a merger between Samsung C&T and Cheil Industries, designed to consolidate his control over Samsung Electronics, the crown jewel of the empire. Although he denied fraud charges, he was found guilty of bribery in 2017 and jailed.
The scandal also implicated South Korea’s then-president Park Geun-hye and led to her impeachment after massive public protests. Lee Jae-yong’s imprisonment marked a significant moment in the company’s history and raised questions about the future leadership of Samsung.
Family Disputes and Legal Battles
The Lee family’s succession struggles were not limited to Lee Jae-yong’s generation. Decades earlier, Lee Kun-hee’s appointment as heir had caused a rift with his elder brother, Lee Maeng-hee, who believed he should have inherited the leadership. This dispute resurfaced in 2012 when Lee Maeng-hee launched a legal claim to regain shares and influence, threatening the family’s control over Samsung.
The courts ultimately ruled that some claims had merit but were time-barred, allowing the succession plan to remain intact. This family feud highlighted the importance of a clear succession line, which Lee Kun-hee established for his children before his health declined.
Recent Developments and Future Prospects
Lee Jae-yong was finally cleared of fraud charges related to the merger in July 2025 when the Seoul High Court upheld his acquittal. This decision ended a decade-long legal battle involving criminal charges, court hearings, and imprisonment.
During the legal proceedings, Lee Jae-yong indicated a shift in the traditional succession approach of South Korean family businesses, known as chaebols. He publicly promised to avoid further controversies related to succession and stated that he would not automatically hand over managerial rights to his children.
This statement suggests a potential change in how Samsung’s leadership might be passed on in the future, raising questions about who will ultimately lead the conglomerate if not the eldest son.
Samsung’s succession struggle remains a significant story in South Korea, reflecting broader issues of corporate governance, family dynamics, and the role of chaebols in the national economy.