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Chair’s only son, 39, takes senior vice president position
Samsung Group Chairman Lee Kun-hee’s only son, Lee Jae-yong, 39, will finally display his managerial ability, as he was recently promoted to senior vice president of Samsung Electronics. The technology superfirm announced the appointment on January 19; Lee’s official new title is Chief Customer Officer (CCO). Thus, he will be responsible for communicating with both ordinary customers and worldwide corporate clients such as Sony and Intel, which are business partners of Samsung. The younger Lee is going to decide Samsung’s future direction, according to Samsung Electronics. A publicity official of Samsung said, "As he has taken practical lessons visiting factories since he was a high school student, now it is necessary for him to see the forest, instead of the trees." Lee is going to lead a separate organization from any other existing ones and will report directly to Vice Chairman Yun Jong-yong.With Lee’s promotion and his new role, the familial succession of Samsung Group’s managerial control will likely be accelerated. As the CCO can have an access to the top information of the group, the junior Lee can easily hold a grip on the entire group. Besides, the CCO is an appropriate position for Chairman Lee’s heir, because his performance will not be judged by figures such as sales or profits. An official of Samsung Electronics mentioned that the process of succession, which has been steadily proceeding, has entered the latter part of the process. Lee Jae-yong, however, faces obstacles such as the continued fallout surrounding the failure of "e-Samsung," his internet-based enterprise launched in 2000. Many of Samsung’s affiliates invested a great deal of money in the venture. A civic group, the People’s Solidarity for Participatory Democracy, said that Samsung affiliates suffered over 38 billion won (US$40 million) in losses due to their investment in e-Samsung. In addition, Lee is still under investigation for being involved in the alleged illegal acquisition of shares from Samsung Everland in 1996. A former nationally ranked equestrian, Lee joined the company as an assistant vice president in 2002. Please direct questions or comments to [englishhani@hani.co.kr]
