[Aju News DB]
South Korean electronics giant Samsung Electronics disclosed a crucial decision Tuesday to change the structure of corporate governance into a system controlled by a holding company.
The change has been anticipated since Samsung Electronics vice chairman Jay Y. Lee, the only son of Samsung Group's bedridden patriarch Lee Kun-hee, became a registered board member last month.
At that time, the world's largest maker of smartphones and microchips promised to improve corporate governance, enhance the value of shareholders, and introduce a more open corporate culture.
"Samsung Electronics has made consistent efforts to simplify its business structure," the company said in a statement, adding it would take about six months to complete a review of its structure through consultations with foreign experts.
"This includes the possibility of creating a holding company structure and the potential benefits and feasibility of listing the company's shares on additional international exchanges," it said.
Samsung promised to increase total dividends in 2016 by 30 percent to four trillion won. Quarterly dividends would be paid from the first quarter of next year, and the company said its board would bring in new directors with sufficient experience in foreign companies.
Samsung's decision partly reflected demands from US activist fund Elliott Management which has suggested that Samsung could use its debacle caused by combustible smartphones for a chance to improve corporate governance.
The US fund has urged Samsung to split into holding and operating companies, list the operating company on the NASDAQ stock exchange, pay a special dividend and consider an equity merger with Samsung C&T.
Lee has struggled to streamline the group's bloated structure to focus on futuristic businesses like bioengineering, smart auto parts, batteries.
Analysts have predicted that the group would be streamlined into two major sections with Samsung Life Insurance controlling financial units and Samsung Electronics spearheading nonfinancial affiliates such as Samsung SDS.
Aju News Lim Chang-won = cwlim34@ajunews.com
reporter
Park Sae-jin
swatchsjp@ajunews.com
