Feeds

Samsung boss sued by his brother over stock inheritance

Kun-hee accused of pilfering shares after father's death

High performance access to file storage

Samsung Electronics chairman Lee Kun-hee is being sued by his brother over stocks inherited from their father, the Samsung Group founder Lee Byung-chull.

Lee Maeng-hee has filed the suit in Seoul, alleging that his younger brother secretly incorporated a huge amount of Samsung stocks into his assets, Korean news agency Yonhap reported.

Maeng-hee wants the court to order the chairman to return 8.24 million shares in Samsung Life Insurance – worth 716.9 billion won ($636m, £404m) according to today's closing price – and 20 stocks in Samsung Electronics, along with 100 million won ($88,800, £56,427).

He claims that their father put these shares in a trust under the names of a number of Samsung Group executives, but Kun-hee transferred the stocks to himself after their father's death in 1987.

"The concerned stocks of Samsung Life and the life insurance firm itself were assets put in a trust under the name of non-heirs, and they should have been apportioned to the heirs according to law," Maeng-hee said in the court records. "Upon our father's death, Chairman Lee did not inform peer heirs and heiresses of the trust and unilaterally put them under his own name."

It's not the first time that Lee Kun-hee has been accused of less-than-honest financial dealings: he was chairman of the whole Samsung Group from 1987 until 2007, when he was convicted of tax evasion and fined $109m. In 2009, he was also found guilty of abuse of trust after issuing bonds below market price to his son. He was fined $89.2m and given a three-year suspended sentence because he paid the money back to the firm.

Despite all this, he returned to the company in 2010, this time as chairman of just Samsung Electronics, after he was pardoned for his previous misbehaviour.

Kun-hee is listed at 105 in the Forbes list of World Billionaires, with an estimated net worth of $8.9bn.

Samsung did not immediately respond to a request for comment, but the company's South Korean offices told Yonhap that "the group has no specific stance on the case". ®

3 Big data security analytics techniques

More from The Register

next story
Putin tells Snowden: Russia conducts no US-style mass surveillance
Gov't is too broke for that, Russian prez says
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
Whoever you vote for, Google gets in
Report uncovers giant octopus squid of lobbying influence
Lavabit loses contempt of court appeal over protecting Snowden, customers
Judges rule complaints about government power are too little, too late
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Don't let no-hire pact suit witnesses call Steve Jobs a bullyboy, plead Apple and Google
'Irrelevant' character evidence should be excluded – lawyers
EFF: Feds plan to put 52 MILLION FACES into recognition database
System would identify faces as part of biometrics collection
Ex-Tony Blair adviser is new top boss at UK spy-hive GCHQ
Robert Hannigan to replace Sir Iain Lobban in the autumn
Banks slap Olympus with £160 MEEELLION lawsuit
Scandal hit camera maker just can't shake off its past
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.