Samsung changes: Lee family control over the precariousi dark horse: the face of Samsung's Lee Kun-hee, head of the body, the succession issue has become Samsung's most urgent. How to make Samsung the successful completion of structural change, and Samsung's Lee family to keep control? Lee's son Lee Jae-yong hit the \u0026 ldquo; IPO \u0026 rdquo; \u0026 ldquo; to simplify the structure \u0026 rdquo; and other new brand, what effect, remains to be seen. The following is the text of the article: When the head of Samsung Group, Lee Kun-hee admitted into the first three months of treatment, his family got into a restless, his family is likely to lose control of the business. 72-year-old Lee 27 years ago, Samsung's ownership inherited from his father, who, by virtue of their talent he has surpassed Sony and Nokia, even in the mobile phone business is also ahead of Apple. However, his 46-year-old son Lee Jae-yong is difficult to maintain the same influence, mainly because he faced more than five billion US dollars to the huge inheritance tax, and Korea is no longer supported by cross-holdings controlled conglomerate practices. Through a well-organized network of cross-holdings, the Lee family to less than 2% of the stake, control of the Samsung Group 74 companies. Due Samsung in the smart phone market is facing serious challenges on the occasion, since 1991 has been living in the shadow of his father Lee Jae-yong, Lee had to loosen control over the family and reduce wary of outside shareholders. \u0026 Ldquo; Samsung has become a world leader, simply because Lee Kun-hee, chairman of the management firmly in the hands of the right, to make it free from outside influence. \u0026 Rdquo; Professor, School of Management, Kyung Hee Kim Houng Yu said, \u0026 ldquo; Once the cross-shareholding structure is broken, the Lee family for control of the Samsung Group would be weakened, they will be more vulnerable to outside influence. \u0026 Rdquo; large Korean Securities analyst Claire \u0026 middot; Gold (Claire Kim) that, with Samsung's cash reserves gradually increasing (currently reach 58 billion US dollars), its shareholders may be pressuring the company to increase dividends. With growth slowing performance, they also may force Samsung to expand the strategic adjustment or cut capital expenditures. IPO Korean Fair Trade Commission data show that Lee tremendous influence in Korea, he single-handedly Samsung will build into the country's most powerful business group, revenue size has twice ranked second in business. In the process, he also has accumulated $ 11.4 billion in assets, has become South Korea's richest man. After he was hospitalized due to a heart attack, the Samsung Group's succession planning will become more urgent. Seoul law firm Shin \u0026 amp; Kim tax lawyer is Kim Hyeon Jin said, according Nike Shoes to Korean law, Lee's heirs have to pay up to 50% of the estate tax, totaling $ 6,000,000,000. Although the stock transferred by the Foundation's approach to tax avoidance, but in any case, the Lee family may all lose a certain degree of control of those assets. Lee family is now planning to make the Samsung Group's two listed companies, which will help offset some of the inheritance tax, but can also comply with the restrictions the South Korean government to tighten enterprise group. One is Cheil Industries company, which although small, but it has important significance: it operates a number of parks and golf courses, also has called the world's largest water park, Caribbean Bay (Caribbean Bay). Although the family claimed Samsung Group, Samsung Electronics is the largest enterprise, but the Lee family have many rights from Cheil, that is, before the Samsung Everland (Samsung Everland). The privately held company is the essence of the Lee family holding company, directly and indirectly held subsidiary of Samsung Electronics, finance and trading company. Air Jordan 7 Retro In addition, a Samsung Group's upcoming enterprise technical service provider Samsung SDS. Cheil holds a 19.3 percent stake in Samsung Life Insurance, Samsung Life Insurance, Samsung Electronics holds 7.6 percent of shares. This handset manufacturers have a 37.5% stake in Samsung Card, Samsung credit card company through a 5% stake Cheil shares finished the cycle. Lee family now fully in control of Cheil. Lee Jae-yong holds a 25% stake in the company, stake his sister Lee Fu-true and Syria are both significant 8.4%, their father also holds a 3.7% stake. The remaining shares are held by other major chaebol, but they are closely related to the Lee family. Analysts said shareholders other than the Lee family might sell all the shares in the IPO of Cheil, allowing the family to get full control. Public Opinion Although the IPO can raise funds, but also enhance the transparency of the Government's request, but it can also be part of the secret of the Samsung empire public. Cheil and SDS must publish financial performance and personnel decisions, which may be affected by aggressive investors. \u0026 Ldquo; It is with cross-shareholding structure which makes Lee and his family use so little control of the entire stake in Samsung. \u0026 Rdquo; Park Ju Gun CEOSCORE president of business consulting firm, said South Korea, \u0026 ldquo; there is no such structure, Lee Jae-yong completely unable to get the same control. \u0026 Rdquo; Samsung Group spokesman declined to succession planning and ownership structure post comments, also refused to allow members of the Lee family interview. External pressure Lee Jae-yong's top colleges and universities graduated from Seoul National University, to establish good relations of cooperation between Samsung and Google and Apple in the process, he set up hehe exploits. However, South Korean commercial research institutions Chaebul.com CEO Chung Sun Sup that because almost no proof of personal ability, and therefore difficult to obtain Lee Jae-yong and his father the same respect and authority. \u0026 Ldquo; no Lee, the market for Samsung's future seems worried. \u0026 Rdquo; he said, \u0026 ldquo; regardless of whether the successor Lee Jae-yong, the successor charisma and leadership skills are sufficient to win their support and trust, as Lee, will be marked with a big question mark. \u0026 Rdquo; so far so far Samsung has not faced much external pressure, from this to some extent, Samsung has dominated the global mobile phone industry. But the company has recently encountered some resistance, its operating profit has declined for three consecutive quarters. Millet and other Chinese smartphone vendors by virtue of inexpensive equipment to snatch the Samsung users, and Apple is more aggressive in attracting high-end consumers. History chaebol Samsung shares have last year, compared with a record 1.584 million won (about $ 1,546) fell by 15%. After the 2013 fall 9.9, the stock fell another 1.8 percent this year. \u0026 Ldquo; we can Kids Shoes not really answer the future prospects of Samsung smart phone business. \u0026 Rdquo; professor of economics at Seoul National University Kim Sang Jo said, \u0026 ldquo; because the slowdown in profit growth if share prices continued to fall, Lee Jae-yong could control is threatened. \u0026 Rdquo; For decades, the South Korean government supported chaebol such as Samsung and Hyundai, hoping to speed up the modernization process in the country. After the Korean War, it is these chaebol to help the country out of poverty and to become Asia's fourth largest economy. But after the 1997-1998 Asian financial crisis, this situation is about to change. Fearing the rights of chaebol too strong, thus impeding innovation, the public began to reduce their support. Samsung itself has some problems. Lee because SDS bonds sold to his son, artificially low prices in order to achieve the purpose of tax evasion in 2008, was found guilty. But he obtained in 2009 former South Korean President Lee Myung-bak amnesty. Simplify the structure of \u0026 ldquo; This has become a serious problem, it sparked public criticism. \u0026 Rdquo; Kim Sang Jo, said Seoul National University. South Korean President Park Geun-hye has banned a new cross-shareholding, and introduced tax breaks to encourage Nike Hyperdunk the chaebol to relax the existing structure, enhance the transparency Air Jordan 19 of its holding company. \u0026 Ldquo; a listed company adopts hereditary pattern is very reckless. \u0026 Rdquo; Seoul, Yonsei Law School professor Kim Soon Gi said, \u0026 ldquo; simplify the ownership structure of the group seems to be inevitable. If the proper way, will help to dispel people's concerns about transparency and accountability. \u0026 Rdquo; the Korea Fair Trade Commission released a report last year, although the Lee family holding only 1.53% of the shares of Samsung Group, but has control of 49.7%. 'Samsung culture 4.0' Min Jin Gui author believes that although Lee Jae-yong will be challenged father never Nike SB hit him, but he still have a chance. If you can successfully complete the structural change help Samsung and Samsung's Lee family to keep control over, while allowing the business to continue to maintain the right track, Air Jordan 19 he had the opportunity to get out of the shadow of his father. \u0026 Ldquo; lift this complex cross-shareholding structure may take a long time, perhaps a decade. \u0026 Rdquo; Min Jin Gui said, \u0026 ldquo; if Lee Jae-yong able to unravel the complex structure, he may be able to establish their own reputation. After all, even his father did not do it. \u0026 Rdquo;