Samsung declined to comment on the litigation, which is a personal, civil case.

It would be simpler, and cheaper, to have Everland sell its Samsung Life stake to other group entities so the family remains the top shareholder of Samsung Life, maintaining their ownership structure, analysts say. “Lee (Kun-hee) would prefer to settle in cash because losing some of his stake in Samsung Life could spark a bigger ownership restructuring in key Samsung companies,” said Jun Yong-ki, an analyst at Hyundai Securities.īuying more Samsung Life shares would be an expensive option for Kun-hee and Jay Lee. As part of the web of cross-holdings, Samsung Life owns 7.21 percent of Samsung Electronics, which owns 35.29 percent of Samsung Card 029780.KS, which holds 8.64 percent of Everland. Kun-hee is the biggest shareholder of Samsung Life, with a 20.76 percent stake, followed by Everland with 19.34 percent.

Maeng-hee, the eldest son of Samsung's founder, and his sister are seeking a quarter of Kun-hee's stake in Samsung Life.

“It’s generally not in one’s favor to bet against the House of Samsung and the chairman for domestic legal issues - where such influence often transcends economic borders into legal ones,” said Jasper Kim, a professor of international business law and finance at Ewha University’s graduate school.įactbox: Key points of Samsung's Lee family legal spat The hearing may also shed more light on how the Lee family maintains its grip on a sprawling group, some details of which emerged in a 2008 lawsuit when Kun-hee was found guilty of financial wrongdoing and tax evasion that eventually led to the current suit. There’s little chance of Lee losing control of Samsung, but the legal wrangling over a small part of the Samsung fortune - a day after the enthusiastic launch of Samsung’s latest Galaxy S3 smartphone - may dent plans to eventually hand over the reins to his only son, Jay Lee. Lee Kun-hee is unlikely to attend the case at the Seoul Central District Court. Lee Kun-hee, South Korea's richest man and chairman of Samsung Electronics 005930.KS, on Wednesday defends three lawsuits from his elder brother, Lee Maeng-hee, a sister and another relative, who claim $1 billion of assets - mainly shares in Samsung Life 032830.KS, an insurance company at the heart of a web of Samsung Group cross-shareholdings. Samsung Electronics Chairman Lee Kun-hee meets with reporters after touring the Samsung booth at the 2012 International Consumer Electronics Show (CES) in Las Vegas, Nevada January 12, 2012.

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