A son overlooked and a jailed tycoon: Inside Samsung's succession drama

Key developments are emerging from the global stage. A son overlooked and a jailed tycoon: Inside Samsung's succession drama 6 hours ago Share Save Add as preferred on Google Sarah Green and Simon Tulett , World Service Podcasts Bloomberg via Getty Images Samsung chairman Lee Jae-yong When power shifts at the top of some of the world's biggest companies, most people don't notice. If products perform, services work and store shelves are full, then who sits in the boardroom doesn't make headlines. But when it comes to Samsung, the family dynasty behind it is so complicated – and the company so crucial to the South Korean economy – that it's front-page news.

And so it was in 2017 when the Samsung heir-in-waiting, Lee Jae-yong - who is also known as JY Lee - was jailed for his part in a corruption scandal that also brought down the country's president. The 57-year-old is the grandson of Samsung's founder. Geoffrey Cain, author of the book Samsung Rising, described him as "one of the most powerful people in the history of technology".

The Details

But in 2015, with his father – Samsung's chairman – in hospital following a heart attack, Lee's succession was not secure. He'd been accused of giving money to foundations run by Choi Soon-sil – a close friend and confidant of South Korea's former President Park Geun-hye – in return for political support for a merger that would strengthen his grip on the conglomerate. Bloomberg via Getty Images Samsung is South Korea's biggest chaebol, or family-owned business He was also accused of using stock and accounting fraud in that merger – between one Samsung subsidiary, Samsung C&T, and another part of the business empire, Cheil Industries.

Prosecutors said he did that so he could take control of the biggest possible chunk of the newly merged entity and, by extension, assume control of Samsung Electronics: the jewel in the empire's crown, and a key source of power and control. Lee Jae-yong has always denied the fraud charges, but was found guilty of bribery in 2017. When the huge corruption scandal broke in 2016 it sparked weeks of protests by millions of people on the streets of Seoul, and eventually led to the country's president being impeached.

Why was this deal so crucial? Since Samsung was founded as a grocery store in the late 1930s it's been in the hands of the Lee family. According to Geoffrey Cain, the family is the "equivalent of royalty" in South Korea.

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They grew the business into a true global power, taking in insurance, memory chips and construction, along with the consumer tech that's so familiar. But to stay in family hands, the conglomerate has had to go through a series of complex mergers, acquisitions and power transfers. It's this manoeuvring that put Lee Jae-yong in jail.

He'd been in de-facto charge since 2014 when his father, and then Samsung chairman, had a heart attack. His father had grown the company from a successful South Korean business to a global conglomerate. In preparation for taking over, Lee Jae-yong had been through a series of top roles.

The development has drawn wide international attention, with diplomatic circles watching closely.