Lee Kun-hee
Lee Kun-hee | |
|---|---|
| Born | Template:Birth date Daegu, Korea under Japanese rule |
| Died | October 25, 2020 (aged 78) |
| Occupation(s) | Entrepreneur, Chairman of Samsung |
| Years active | 1966–2014 (active leadership) |
| Known for | Chairman of Samsung Group; transforming Samsung into a global leader in electronics and semiconductors |
Lee Kun-hee (; 9 January 1942–25 October 2020) was a prominent South Korean entrepreneur who held the position of chairman at Samsung from 1987 until 2008, and then again from 2010 until his passing. He is widely recognized for steering Samsung into a dominant force in industries such as semiconductors, smartphones, electronics, shipbuilding, and construction. During his tenure, Samsung emerged as the leading global producer of smartphones, memory chips, and household appliances. Lee was the third son of Lee Byung-chul, the founder of Samsung. At the time of his death, his net worth was estimated at US$21 billion, ranking him as South Korea's wealthiest individual since 2007.
Lee encountered legal issues related to corruption and tax evasion in both 1996 and 2008 but was granted pardons on both occasions. In 2014, Forbes listed him as the 35th most influential person worldwide and identified him as the most powerful Korean figure, alongside his son Lee Jae-yong.
Early life
Born on 9 January 1942 in Daegu during the period of Japanese colonial rule, Lee Kun-hee was the son of Lee Byung-chul, who established Samsung Group initially as a business exporting fruit and dried seafood. Lee pursued studies in economics at Waseda University in Tokyo before continuing his education at George Washington University in the United States.
Initial tenure at Samsung
Beginning his career in 1966 with the Tongyang Broadcasting Company, then affiliated with Samsung, Lee later worked within Samsung’s construction and trading sectors. He assumed the role of chairman of Samsung Group on 24 December 1987 following his father’s demise.
In 1993, dissatisfied with Samsung’s emphasis on volume rather than excellence, Lee initiated a significant corporate reform encapsulated by his famous statement: "Change everything except your wife and kids." This directive, referred to as the 'Frankfurt Declaration', prioritized innovation and quality enhancement to rival competitors such as Sony. Under his guidance, Samsung evolved into the world’s largest television manufacturer by overtaking Sony in 2006.
Controversies and legal challenges
In 1996, Lee was convicted for bribing then-president Roh Tae-woo, though he was subsequently pardoned by president Kim Young-sam.
On 14 January 2008, authorities conducted raids on Lee’s residence and offices amid allegations that Samsung operated a slush fund intended to bribe prosecutors, judges, and political officials. While Lee initially denied these accusations on 4 April 2008, he later acknowledged responsibility on 11 April with the statement: "I am responsible for everything. I will assume full moral and legal responsibility." He resigned from his position on 21 April 2008, expressing regret for causing national difficulties due to the investigation.
The Seoul Central District Court found Lee guilty on 16 July 2008 of financial misconduct and tax evasion. Prosecutors had requested a seven-year imprisonment and a fine of 350 billion won (US$312 million), but the court sentenced him to a three-year suspended term along with a fine of 110 billion won (US$98 million). On 29 December 2009, president Lee Myung-bak granted Lee a pardon enabling him to continue serving on the International Olympic Committee. Subsequent revelations indicated that this pardon involved bribery between the two Lees, uncovering additional layers of political corruption.
The book Think Samsung, published in 2010 by former Samsung legal advisor Kim Yong-chul, accuses Lee of embezzling up to 10 trillion won (US$8.9 billion) from Samsung subsidiaries, manipulating evidence, and bribing officials to secure his son's succession within the company.
Return to Samsung
On 24 March 2010, Lee resumed his position as chairman of Samsung Electronics. He maintained this leadership role until 2014, when a heart attack rendered him incapacitated, leading his son, Lee Jae-yong, to effectively assume control of the conglomerate. Lee is widely recognized for elevating Samsung to become the foremost global producer of smartphones, televisions, and memory chips. At the time of his passing, Samsung's market valuation stood at approximately US$300 billion, and Lee was South Korea's wealthiest individual with an estimated net worth of US$20.7 billion—a status he had held continuously since 2007.
After his death, Lee’s successors are confronted with an estate tax obligation near US$10 billion, due to South Korea's 50% tax rate on inheritances exceeding US$3 billion. This substantial tax liability could potentially reduce the family’s ownership share in Samsung.
Personal life
Lee Kun-hee was married to Hong Ra-hee, who is the daughter of Hong Jin-ki, a former chairman of JoongAng Ilbo and Tongyang Broadcasting Company. Numerous members of his extended family, including siblings and their offspring, occupy executive positions within prominent Korean business conglomerates. His eldest daughter, Lee Boo-jin, holds the roles of president and CEO at Hotel Shilla as well as president of Everland Resort, which is often regarded as the practical holding company for the group.
Lee fathered four children: a son, Lee Jae-yong (born 1968), and three daughters—Lee Boo-jin (born 1970), Lee Seo-hyun (born 1973), and Lee Yoon-hyung (1979–2005).
In 2012, Lee’s elder siblings initiated legal proceedings claiming shares valued at approximately US$850 million that they asserted were bequeathed to them by their father. The lawsuit was dismissed by the court in February 2014.
Illness and death
During the late 1990s, Lee underwent treatment for lung cancer and received follow-up examinations in 2005 at the MD Anderson Medical Center in Houston, Texas, with no subsequent complications reported. He was admitted to a hospital in Seoul in May 2014 following a heart attack and remained unconscious until he passed away on 25 October 2020 at age 78.
His death resulted in South Korea’s largest-ever inheritance tax bill amounting to 12 trillion won (approximately $10.78 billion).
Posthumous
In early 2021, Lee’s heirs revealed intentions to donate his extensive art collection—comprising over 23,000 pieces—to various public institutions throughout South Korea. Shortly thereafter, the nation’s minister of culture, sports, and tourism announced plans to create a dedicated museum in Seoul to showcase the Lee collection.