Samsung’s Lee richest stockholder among 3rd chaebol generation

Lee Jay-yong, vice chairman of Samsung Electronics, became the richest third-generation business tycoon in South Korea in terms of stock value, thanks to the initial public offering of Samsung SDS last Friday.

The Samsung heir apparent Lee’s equities were valued at almost 3.9 trillion won after taking his 11.25 percent ownership in Samsung SDS into account, according to Chaebul.com, an online information provider of Korea’s family-run conglomerates.

Samsung SDS, the group’s IT solutions developer, made its landmark debut on the Korea Exchange last Friday, closing at 327,500 won, down 13.82 percent from its opening price of 380,000 won. The company’s offer price was 190,000 won.

Samsung SDS’ IPO enabled the only son of Samsung chairman Lee Kun-hee to gain some 2.8 trillion won in stock value for his 11.25 percent share, about 280 times more than his initial investment at 1,180 won per share 15 years ago.

Samsung SDS became the sixth-largest company on Korea’s main bourse, the KOSPI, in terms of market capitalization, overtaking Korea’s largest portal Naver and following closely behind POSCO, the largest steelmaker.

Meanwhile, Hyundai Motor vice chairman Chung Eui-sun, the son of group chairman Chung Mong-koo, was bumped to No. 2, behind Lee, in the rankings in part due to the rise of Samsung SDS but also the declining value of Hyundai Motor shares.

Overall, Lee Jay-yong became the fourth-richest stockholder, following Hyundai Motor chairman Chung and Amore Pacific CEO Suh Kyung-bae, Chaebul.com noted. Lee’s father ― who is currently recuperating after a heart attack last May ― remained the richest stockholder valued at about 11.7 trillion won.

Analysts say that Lee Jay-yong’s equity value is expected to increase as shares of Samsung SDS are projected to reach 400,000 won. Also, the planned IPO of Cheil Industries, of which Lee owns 25.1 percent, is likely to spur his stock value, exceeding that of Hyundai Motor owner Chung.

By Park Hyong-ki (hkp@heraldcorp.com)