I knew Samsung was a far-reaching and powerful company, but I must say that I'm impressed with the amount of coverage it has been getting in the foreign press recently. But it's not just coverage. Lee Kun-hee's resignation (see previous post) has sparked surprise, disbelief and even action around the world.
"Surprise"
"It was a surprise move. Mr. Lee had survived previous corruption scandals and even a conviction on bribery charges in the 1990s to hold on to his chairmanship."--NYT, April 22, 2008
"Unprecedented"
"The announcement signals ``an end to the era of the Masters of the Universe,'' says Tom Coyner, who helps advise foreign investors in Korea as president of Soft Landing Consulting Ltd. in Seoul. ``The resignation by Chairman Lee Kun Hee is unprecedented."--Bloomberg, April 23, 2008
"Not much will come of move"
"Samsung Group Chairman Lee Kun-hee's resignation under the cloud of a criminal indictment will end his 20-year direct control of South Korea's largest business. But he will retain significant influence as its largest individual shareholder, raising questions about how deeply the business will really change."--WSJ, April 23, 2008
According to the Chosun Ilbo, there are mixed views in Japan. Kyodo News Agency thinks Lee will remain just as influential. Meanwhile, Nihon Keizai says Japan will use this momentum to recover some of the ground it lost to Samsung in the industry. Unfortunately, the Japanese articles were not available to read at the time of this post.
Many see Lee's resignation as hope for more transparency within Korea's chaebols. Some even go as far as to say that it spells the end for the chaebol era. But I doubt they'll go down without a fight. Forbes.com reported yesterday that half of Korea's 40 richest people are affiliated with chaebols.
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