The strength of Samsung puts it in a strong position to collect a new scandal – The guardian nigeria

The investors have not panicked on Monday with the announcement of the prosecutor’s request to detain Jay Y. Lee, the boss of Samsung. The title of Samsung Electronics, the pearl of the conglomerate, fell 2.1% in Seoul. The action always moves not far from its historic high reached at the beginning of January, when the group was unveiled, despite the fiasco of the Galaxy Note 7 explosives, quarterly earnings records.

Though analysts have of a possible vacancy of power at the head of the conglomerate and are considering a slight erosion in the Stock price in the next few days, no one believes in a destabilization deep of Samsung Electronics and other companies of the ” chaebol “. the ” Samsung has a strong team of experienced leaders, who are fully capable of managing the daily life of the group “, recalls Mark C. Newman, of the firm Bernstein Research. It points in particular, Kwon Oh-hyun and Choi Gee-sung, two of the most senior executives of Samsung Electronics.

governance Reform

not being imposed as a micromanager, Jay Y. Lee has left a lot of freedom to his lieutenants to focus on the major strategic orientations of the empire family. It is he who has pushed the group to the equipment for automobiles autonomous or biopharmaceutical.

Without altering the dominant position of Samsung in the global market of smartphones and semi-conductors, and arrest of the young heir could, on the other hand, to halt the reorganization of the governance of the ” chaebol “, requested by many shareholders and investigated by the Lee family.

Samsung, built around an inextricable tangle of cross-shareholdings between sixty entities, was planning to reorganize, starting in the spring, a holding company that simplified. the ” Even if the scandal can clearly curb short-term projects of restructuring, the reform of the Samsung group, it will anyway “, writes Mark C. Newman.

Malice

in Seoul, other analysts reminded on Monday night, with malice, that the power of south korea also had, in the past, knew how to be merciful with the leaders of Samsung to not jeopardize its growth, which the country needs. Lee Kun-hee, the father of Jay Y.

Lee, had, himself, been convicted, in 2009, to tax evasion but had been sentenced to a suspended prison sentence. It had been later pardoned by the presidency, in appreciation of his support to the candidacy of South Korea to the organization of the Olympic winter Games of 2018. A pardon similar had been granted to him in 1997 after a previous conviction for illicit financing of a presidential election.

Y. A.