Samsung has promoted Lee Jae Yong, the chairman’s son, to the position of president. His younger sister, Lee Boojin, was made president of Samsung Everland, CEO of affliate Hotel Shilla Co and adviser to Samsung C&T corp.
This is a reflection of the “chaebol” model in South Korea, a form of business conglomerate.
The Samsung Group chaebol consists of numerous other businesses, including leisure, finance and construction. It owns 67 affiliates which generated 220 trillion in sales last year, which is the equivalent of one-fifth of South Korea’s gross domestic product.
The sibling promotions highlight the control that the Samsung founding family has over the corporation. Lee Jae Yong and Lee Boojin will use these positions to prove they can lead the companies this chaebol runs.
Lee Jae Yong studied at Harvard Business School and went to Keio University in Japan. He joined Samsung Electronics in 1991.
Within Samsung, he was chief customer officer and vice-president at the strategic planning division. In December 2009, he was promoted to executive vice-president and chief operating officer.
Lee Boojin was said to have played a pivotal role in improving profitability at Hotel Shilla and Samsung Everland.
The news saw shares in Samsung Electronic rise 4.1pc higher, hitting a record 894,000 won.