Former Samsung Group vice chairman Lee Hak-soo, the former right-hand man of group chairman Lee Kun-hee, is ready to return to center stage. But this time, it won’t be for Samsung Group.
Lee has maintained a low-key profile since 2008 when he stepped down from the group’s No. 2 post with chairman Lee, taking responsibility for assisting the chairman in running secret slush funds.
Last week, Chaebul.com, an online information provider of Korean ultrahigh net worth individuals, predicted that the 68-year-old former Samsung executive would find his name on the list of self-made South Korean billionaires within the month following Samsung SDS’ stock listing scheduled for Nov. 14.
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Former Samsung Group vice chairman Lee Hak-soo. (Herald Business) |
Lee reportedly holds around 3.2 million shares in Samsung’s information and technology unit, whose initial public offering was set at 190,000 won.
The firm’s stocks are being traded in the over-the-counter market at almost double this figure at around 380,000 won, according to industry sources.
Industry sources said Lee secured the stake in Samsung SDS in 1999 when the group chairman offered him Samsung SDS bonds with a stock purchase warrant as a bonus.
“If the projection is realized, Lee’s wealth could exceed 1 trillion won ($930 million),” Chaebul.com said in a recent report.
Yuanta Securities projected that shares of Samsung SDS could jump to 500,000 per share based on the zeal of institutional investors for buying shares of the Samsung unit, which is directly related to the group’s succession plan.
There has been speculation that Samsung SDS’ IPO was being driven to support the three Samsung heirs including Lee Jae-yong, the eldest son of Samsung Group chairman, to secure funds to cover the inheritance taxes.
Samsung’s heir apparent Lee, for instance, who holds around an 11 percent stake in Samsung SDS, is expected to raise more than 3 trillion won ($2.8 billion) if the firm’s share price doubles its IPO forecast.
The former Samsung Group executive has additional income sources including an office rental business that has helped him accumulate his fortune. Lee and his family members own an office building named as L&B Tower, valued at around 200 billion won ($186 million), in Daechi-dong, an affluent district in southern Seoul.
Lee’s two sons, currently working in the private equity sector, are also another source of family wealth.
Lee’s eldest son Sang-hoon leads the private equity arm of Morgan Stanley in Korea. His younger brother Sang-ho is the CEO of Glenwood Private Equity Fund.
“The senior Lee allegedly leverages his human network to support his sons in corporate mergers to further boost his family’s wealth,” an official from chaebul.com said. “Lee’s family has now evolved into one of the richest in Korea.”
By Seo Jee-yeon (
jyseo@heraldcorp.com)
