Lee Kun-hee regains Samsung Electronics control
Scandal
is nothing new in any segment of the business world. The tech
industry has more than its share of scandals, patent lawsuits, and
seemingly never ending legal proceedings.
In 2008, Samsung
Electronics was embroiled in a scandal when Samsung Group chairman
Lee Kun-hee was forced to step
down from his post at the company after being indicted for
tax evasion. He was indicted for trying to hide about $113 million in
an effort to avoid paying taxes on the money. The Wall Street
Journal reports that Lee attempted to hide the money in various
corporate accounts under the name of other employees. Hiding the
money reportedly had to do with an effort that Lee undertook in the
mid-1990's in an effort to retain enough shares of Samsung stock to
give his son control over the family-founded empire.
Samsung
has its fingers in much more than just electronics. The Samsung Group
also has arms that work in segments as varied as shipbuilding,
construction, and financial services. Lee had controlled all aspects
of the Samsung empire until his resignation. At the time Lee stepped
down, a council of presidents was formed to manage the
company.
South Korean President Lee Myung-bak pardoned Lee in
December of 2009 in hopes that Lee could return to the International
Olympic Committee and his efforts to help bring the 2018 Winter
Olympics to South Korea. In February the group of presidents now
running Samsung's vast businesses had met to talk about inviting Lee
back to Samsung in an official capacity. The council of presidents
sent Lee a letter on February 24 inviting
him back to become the chairman of Samsung Electronics. The
WSJ reports that there is no clear indication of why Lee was
only invited back to Samsung Electronics instead of his previous
perch as Samsung Group chairman.
Lee said in a statement
issued by Samsung Electronics, "[The] best companies in the
world are collapsing. We don't know what is going to happen to
Samsung too. In the coming 10 years, businesses and products that
represent Samsung today will mostly disappear."
2010 is
expected to be a big year for Samsung with some predicting record
revenue for the electronics giant of more than the $10 billion the
firm racked up in 2004. Samsung is also predicted to pass HP as the
largest shipper of high-tech equipment by revenue in the entire world
in 2010.
Samsung is betting big on 3D TV sales this year and
leading into 2011 as the new technology drives users to upgrade
existing sets. Samsung is the market leader on the global scale in
TVs and holds the second spot in mobile phones behind Nokia. There is
no word on the other two Samsung executives returning to the company
that resigned at the same time as Lee. One of the executives in the
scandal was Lee's son.
"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs
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