SEOUL (Reuters) – Jay Y. Lee, the billionaire inheritor to South Korea’s Samsung Group, ought to discover some consolation that its crown jewel Samsung Electronics Co Ltd has reported document revenue each quarter since he was jailed in February, making him even richer.
Detained over expenses that he bribed former president Park Geun-hye, Lee has since missed the launch of two new flagship telephones and three record-breaking quarterly earnings, together with July-September earnings steerage on Friday.
He may also be briefed that his high lieutenant and chief government of Samsung Electronics, Kwon Oh-hyun, has determined to step all the way down to make method for a brand new chief.
Kwon, who was anticipated to take an even bigger function following Lee’s arrest and the departures of different key executives within the wake of the bribery scandal, made the shock announcement on Friday when Samsung additionally forecast document quarterly revenue on the again of the reminiscence chip enterprise.
Whereas Lee is unable to do a lot to reduce a management vacuum at one of many world’s greatest know-how corporations, the 49-year-old Samsung scion will get some solace that Samsung is chugging alongside with out him.
He might also prefer to know his wealth, when it comes to his stake in Samsung Electronics, has elevated by not less than 45 % since his arrest.
His Samsung Electronics stake, albeit under one %, is now price 2.three trillion gained ($2.zero billion). Lee additionally obtained not less than 11.eight billion gained ($10.5 million) in dividends from Samsung Electronics throughout his detention, and 837 million gained in pay in the course of the first half of 2017. He owns stakes in different Samsung associates.
He’ll miss one other document earnings announcement anticipated within the fourth quarter as he’s anticipated to remain in jail not less than till February, when the appellate courtroom listening to his case is more likely to attempt to rule on the bribery swimsuit.
Whereas some traders fear a few extended management vacuum, and Kwon warned that Samsung was struggling to seek out new progress engines, others appear extra sanguine.
“I believe Samsung has a agency system to run the corporate even within the absence of its head, as we noticed from the case of each Lee Kun-hee and (his son) Jay Y. Lee,” stated a fund supervisor who owns Samsung shares, referring to the Samsung Group patriarch who was incapacitated in 2014 following a coronary heart assault.
“Somebody will substitute him one way or the other. It’s identical to Apple doing superb even after Steve Jobs,” he stated, declining to be named as he was not licensed to speak to the media.
Reporting by Joyce Lee; Extra reporting by Dahee Kim; Modifying by Stephen Coates