April 27, 2024

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[THE INVESTOR] With Samsung Electronics Vice Chairman Lee Jae-yong behind bars on bribery charges, there is growing speculation that his sister Lee Boo-jin, popularly known as “Little Lee Kun-hee,” may step in to fill the leadership vacuum at the conglomerate.

Ahn Hoon/The Korea Herald

Although Samsung officials emphasized that the absence of the heir apparent will not lead to any fundamental changes in leadership, concerns are growing as Chairman Lee Kun-hee is also in hospital. Industry watchers speculate that it will not be long before Boo-jin starts managing affairs at the tech giant.

Reflecting the heightening expectations, shares of Hotel Shilla, of which she is the CEO, have been rallying throughout this week, rising sharply from around 42,000 won to the opening price of 49,850 won (US$43.60) on Feb. 17, while the rest of groups affiliates’ stocks have been sliding down. 

Boo-jin has been running the hotel and duty-free business since December 2010. The 47-year-old has kept a relatively low profile and almost exclusively kept to the hospitality and duty-free businesses. She has been credited for the revival of the hotel sector and build-up of the duty-free business, bringing in international luxury brands and even joining hands with rival Hyundai to win the much coveted downtown duty-free store.

Incidentally, during the presidential corruption scandal probe, former executive at the Korea Equestrian Federation Park Won-oh reportedly said that Boo-jin was the favorite of her mother Hong Ra-hee, director of Leeum, Samsung Museum of Art.

By Hwang You-mee (glamazon@heraldcorp.com)