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# 62 Lee Kun Hee $18.3B

Random fact: Jury ordered Samsung to pay $1 billion for infringing Apple patents.

Overview

Lee is the chairman of Samsung Electronics, the world's largest producer of smartphones. The Seoul-based company is the flagship of Samsung Group, South Korea's largest family-owned conglomerate. It also produces televisions and personal computers, and had revenue of 243.8 trillion won ($222 billion) in 2018.

As of :
Last change -$237M ( -1.3%)
YTD change +$2.83B ( +18.4%)
Industry Diversified
Biggest asset 005930 KS Equity
Citizenship Korea, Republic of
Age 77
Wealth Inherited
View net worth over:   Max 1 year 1 quarter 1 month 1 week

Relative Value

Lee Kun Hee's net worth of $18.3B can buy ...

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Latest News

Net Worth Summary

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Confidence rating:

The majority of Lee's fortune is derived from his 5.1% stake in Samsung Electronics. The Seoul-based company is the flagship of South Korea's largest family-owned conglomerate by asset size, according to an August 2019 Bloomberg News report. Samsung is also the world's biggest smartphone company. Samsung Electronics had revenue of 243.8 trillion won ($222 billion) in 2018, according to its annual report.

Lee holds 4.2% directly, according to the company's 2019 semi-annual report, and a 0.9% stake through his wife, Hong Ra-Hee, who doesn't have a management role with the company. These are credited to Lee because he ultimately controls the shares. He also holds less than 1% of the company's preferred shares directly, according to the same report.

Lee directly owns 21% of Samsung Life Insurance, the group's financial affiliate, according to the company's 2019 semi-annual report.

He also received a 2.9% direct stake in the new Samsung C&T, the successor of the group's holding company Cheil Industries, after it merged with the former Samsung C&T on Sept. 1, 2015, according to its 2019 semi-annual report.

He's collected about 2.6 trillion won ($2.2 billion) in dividends through November 2019, according to company filings and an analysis of Bloomberg data. The value of his cash investments is based on these proceeds, as well as taxes, market performance and charitable giving.

Five residential properties owned by the billionaire are worth about $75 million, according to The Korea Herald website in April 2017.

Kevin Cho, a spokesman for Samsung, declined to comment on Lee's net worth.

Biography

Birthdate: 1/9/1942
Family: Married, 3 children
Education: Seoul National University, Waseda University

Lee's father, Lee Byung Chull, founded Samsung with 40 employees in 1938, exporting rice, dried fish, noodles and produce to Manchuria and China from Korea during the Japanese occupation. Lee was born on Jan. 9, 1942, to a family with two brothers and five sisters. His father's businesses flourished and diversified into insurance, sugar, paper, textiles and property development following the Korean War. He expanded into electronics and appliances by the late 1960s, making products such as black-and-white TVs, electric fans and rice cookers. During that period, Lee studied abroad, first at Waseda University in Tokyo, obtaining a bachelor's in economics.

Throughout the 1970s, the government encouraged family-controlled conglomerates -- called chaebols in Korean -- through government financing by South Korea's President Park Chung Hee with the aim of developing heavy industry, chemicals, shipbuilding and construction. Samsung and Hyundai were among the chaebols. Lee's father was stricken with cancer in 1976, and in an unusual move, he selected his third son Lee Kun Hee as his successor. Traditionally in Korea, the eldest son would inherit the family business under long-followed Confucian practices. His father died in 1987, and Lee became chairman of Samsung.

Lee hired a Japanese adviser, Shigeo Fukuda, to examine the management of Samsung. The adviser came back with a scathing report of a rigid and outdated bureaucracy that had no concept of design. Lee then held a corporate retreat for 100 top executives on June 7, 1993, at a hunting lodge in Germany where he declared that Samsung was a second-rate company. He forced the managers to watch a 30-minute documentary on the shoddy production practices at a Samsung washing machine factory. He ended the retreat by telling them to "change everything except for your wife and kids." A year later, he ordered his executives to recall phones that were faulty. They collected 150,000 units and Lee invited workers to a bonfire, where they were destroyed.

In April 2008, he was charged with tax evasion and breach of trust after a corporate whistleblower said Lee owned almost $5 billion in Samsung Life stock, shares in other companies, and cash and bonds that were held illegally in 1,200 accounts under other people's names. Lee left Samsung and was convicted of tax evasion. He paid a $90 million fine, $40 million in taxes, and had a three-year prison term suspended. He was subsequently pardoned by South Korea's president and returned to Samsung in 2010. The reason given for the pardon: Lee helped the country's successful bid for the 2018 Winter Olympics. In 2012, Lee's older brother and sister sued him to obtain $3.7 billion in Samsung Life and Samsung Electronics stock that they said they were entitled to since their father's death. Lee won the court case in February 2013.

Milestones
  • 1965 Lee gets bachelor's degree in economics from Waseda University.
  • 1969 Samsung Electronics started in a Quonset hut to make TVs.
  • 1987 Lee Kun Hee becomes chairman of Samsung after father dies.
  • 2008 Charged and convicted of tax evasion. Leaves Samsung.
  • 2009 President pardons Lee. He returns to Samsung a month later.
  • 2012 U.S. jury finds Samsung infringed on six Apple mobile patents.
  • 2013 Older brother and sister lose in lawsuit to acquire $3.7 billion of his shares.
  • 2014 Underwent surgery after suffering a heart attack.