Lee Kun-hee wins family feud suit
Lee Kun-hee, chairman of Samsung Electronics
By Kang Seung-woo
A Seoul court ruled in favor of Samsung Electronics Chairman Lee Kun-hee in a 4.1 trillion won lawsuit filed against him by his estranged older siblings, Friday. The case concerned an inheritance feud over billions of dollars involving shares of major Samsung Group companies.
The Seoul Central District Court dismissed the lawsuit against Lee and Samsung Everland, the de-facto holding firm of Samsung Group, in the inheritance lawsuits filed by Lee Maeng-hee and Lee Sook-hee, the chairman’s eldest brother and elder sister, and the family of the late Lee Chang-hee. Lee Chang-hee was the second son of Samsung founder Lee Byung-chull.
The feud started in February last year when the elder brother asked the court to order the Samsung Electronics chairman to give back shares of Samsung Life Insurance worth about 2.7 trillion won. He also demanded Samsung Everland return 1.4 trillion won worth of shares the theme park company holds in other units.
Separately, his elder sister sought the return of shares worth 190 billion won.
One month later, the wife and two sons of the late Lee Jae-chan, the son of Lee Chang-hee, also demanded a share of his inheritance from the Samsung founder from the Samsung Electronics chairman.
The court said that the 10-year period for inheritance claims had expired and there was not enough evidence to prove that dividends from Samsung companies were intended as part of the inheritance from the group’s founder.
“It is the result we expected. It’s a reasonable ruling,” said a lawyer for Lee Kun-hee.
In response, lawyers for Lee Mang-hee said they will appeal.
The ruling allows Lee Kun-hee to retain his control of Samsung Electronics, the world’s biggest maker of mobile phones, TVs and computer-memory chips.
A ruling against the 71-year-old would have weakened his control of the conglomerate and could have forced a reshuffling of Samsung Group’s complex cross-share governance structure that involves affiliates Samsung Card, Samsung Everland, Samsung Life Insurance and Samsung Electronics.
Lee holds less than 4 percent of Samsung Electronics, but has de facto control of the electronics giant and other Samsung affiliates thanks to family stakes in Samsung Everland and Samsung Life Insurance.
Ahead of the decision, the feud over the family fortune has caused a lot of bad blood.
Right after the lawsuit, CJ lodged a complaint with the police against an employee of a Samsung Group affiliate who covertly tailed its Chairman Lee Jay-hyun, the son of Lee Maeng-hee.
In November, the offspring of the Samsung founder held separate memorial services for the first time in 25 years. Samsung allegedly barred the CJ chairman and his immediate family from attending a ceremony it arranged.