Samsung heir apologizes over MERS outbreak

Samsung Electronics Vice Chairman Lee Jae-yong apologizes at a news conference at the Samsung Seocho Tower, southern Seoul, Tuesday, for Samsung Medical Center’s failure to handle the Middle East Respiratory Syndrome (MERS) epidemic. / Yonhap

By Kim Yoo-chul

Samsung Electronics Vice Chairman Lee Jae-yong apologized Tuesday for the failure of the company’s hospital to stop the spread of the Middle East Respiratory Syndrome (MERS).

“Samsung failed to meet the high expectations of the public to address MERS and gain the public trust. I offer my deepest apology to patients suffering from MERS and their families,” Lee said in a news conference at the Samsung Seocho Tower, southern Seoul.

This is the first time the Samsung heir has been forced to make a public apology since he joined Samsung Electronics as an employee in December 1991.

He also spoke about his father, Samsung Group Chairman Lee Kun-hee, stressing that he knows the agony of having a family member battling a serious illness.

“My father has been lying in the Samsung Medical Center (SMC) for more than a year. I understand the pain and anxiety of the patients and their families,” he said in his emotional speech at the conference, which was packed with more than 90 reporters from local and international media.

Lee pledged that Samsung will take every step it can to put an end to MERS.

“We will take full responsibility to treat the patients who are infected with the virus. We will also closely cooperate with related authorities to put an end to the disease at the earliest possible time,” he said.

Samsung will also overhaul the management of SMC to prevent any recurrence of the same mistakes made at the outset of the crisis, the vice chairman said.

Since taking the chairmanship of the group's two charitable foundations, the vice chairman has assumed the role of acting chief of the nation's most powerful conglomerate.

SMC became the epicenter of the epidemic with about half of the 175 MERS cases in the country traced back to the facility, which is considered Korea's top-tier hospital and is located in the wealthy district of Gangnam.

The MERS outbreak has tarnished the image of the SMC and Vice Chairman Lee admitted that the hospital is partly responsible for the failure to stop the spread of MERS.

Samsung officials said holding the press conference was an overnight decision made by the vice chairman himself.

The conference comes at a time when Samsung is also under attack by U.S.-based hedge fund Elliott Associates.

Observers say the junior Lee is facing a leadership test to prove his ability to navigate the conglomerate through tough times.

While Samsung is in the process of streamlining its structures combining affiliates and dropping unprofitable businesses, the hedge fund wants to block a proposed takeover deal between Samsung C&T and Cheil Industries.