Power transition under way at Samsung
By Kim Yoo-chul
Lee Jae-yong
A transition of power is underway at Samsung Group as its ailing Samsung Electronics Chairman Lee Kun-hee has shown no major improvement in his health for months.
On Wednesday, the Samsung Medical Center (SMC), where Lee is undergoing treatment, said Lee is still unable to communicate.
"The chairman's condition is much better. He can make eye contact and freely move his hands. Unfortunately, he is still unable to communicate," an SMC spokesman said.
But the hospital declined to comment on how long he is expected to be hospitalized.
The chairman, 72, has been in the hospital since a May 10 heart attack.
Amid no significant progress in the chairman's health, attention is being shifted to whether or not the senior Lee's only son and Samsung heir apparent Lee Jae-yong will take control over the conglomerate smoothly.
The younger Lee, who is fluent both in Japanese and English, is an international face for Samsung.
He was Samsung's chief operating officer until 2012 and now is Samsung Electronics' vice chairman.
According to Samsung watchers and officials, the junior Lee is himself being involved in key businesses helped by younger executives at the Samsung Future Strategy Office, the group's controlling tower.
Market analysts and critics say the junior Lee is facing a lot of hurdles that should be addressed before taking over the top spot.
For example, Samsung Electronics reported the worst operating profit in the second quarter in more than two years, as rising Chinese budget smartphone vendors threaten its core mobile unit amid a new axis in smartphones focused on less-pricey models.
While a tough road is ahead for Samsung Electronics over the next couple of years, Samsung officials say it's highly unlikely that the conglomerate will see a huge managerial vacuum because it is being managed by in-built systems.
The junior Lee is believed to have brokered deals with major clients like Apple.
"The junior Lee is the key man who has developed solid partnerships with global business leaders," said another Samsung official.
The long-running patent dispute between Samsung and Apple is near an end as the two firms agreed to drop all lawsuits other than those in the United States.
Some say Samsung should take a number of tough steps to help the junior Lee take complete leadership in the future.
For that, Samsung SDS, an IT solution unit of Samsung, will start selling common stocks from November, while Samsung Everland also planned for an initial public offering to help the junior Lee get needed funds as part of a transition of power from his father.