Samsung heiress named CITIC’s outside director

Hotel Shilla CEO Lee Boo-jin, the eldest daughter of Samsung chairman Lee Kun-hee, has been appointed an outside director of China’s state-run investment firm CITIC Group.

The Samsung heiress accepted the Chinese firm’s request to become a board member of CITIC Group on Dec. 19, in an apparent move that reflects the junior Lee and Samsung’s intention to build a bigger presence in China.

“CITIC made a request to (Lee) to take the position, and she accepted it,” a Hotel Shilla official said. 

Under the appointment, Lee will receive an annual pay of 350,000 Hong Kong dollars ($45,000) from CITIC, with no stock ownership, the official added.

CITIC is a state-run investor with current assets amounting to $684.3 billion. The group was established in 1979 as part of China’s economic reforms and now controls more than 30 affiliates covering finance, insurance, engineering and real estate.

The designation is expected to tighten the state-run firm’s relationship with Samsung Group affiliates, such as Cheil Industries and Samsung C&T Corp., market analysts said.

Some analysts pointed out that the appointment is aimed at bolstering CITIC’s external image and businesses overseas, making the most use of Samsung’s global brand value.

“It is presumable that CITIC will improve the long-term transparency of its affiliates, using Samsung’s brand image,” said Min Kwi-sik, Chinese studies professor at Hanyang University in Seoul. “The outside director system is mainly to enhance corporate transparency and image.”

It is not the first time that members of the Samsung family have been appointed as outside directors of foreign companies.

Samsung Electronics vice chairman Lee Jay-yong, the heir-apparent of chairman Lee, was appointed as an outside director of Exor, the holding company of Fiat-Chrysler Group, in 2012.

By Suk Gee-hyun (monicasuk@heraldcorp.com)