Samsung Electronics may split amid pressure over governance and dividends

Investors have called on South Korean company to set up holding and operating units as it deals with Galaxy Note 7 recall and prepares for succession

Samsung Electronics has said it is considering splitting in two, to allow heir-apparent Lee Jae-yong to take over the firm from his father, Lee Kun-hee, and address governance concerns.

Samsung has also come under pressure from foreign investors, including the US hedge fund Elliott Management, to improve its corporate governance through the establishment of a holding company and to increase dividends for shareholders.

The move comes as it struggles to contain the fallout from a global recall of its Galaxy Note 7 smartphone prompted by exploding batteries.

Lee Jae-yong, the Samsung Electronics vice-chairman and heir-apparent. Photograph: Reuters
Lee Jae-yong, the Samsung Electronics vice-chairman and heir-apparent. Photograph: Reuters

Samsung said in a statement it would consider breaking the company into a holding firm and a producing and operating unit. It would take at least six months to study the option.

Analysts said a split would give Samsung Electronics’ vice-chairman, Lee Jae-yong, a tighter grip on the company through a holding firm.

Elliott and other investors have urged Samsung to set up a holding company as a way to address its complicated layers of cross-shareholdings with sister companies.

They also said the company should increase dividends for shareholders.

Samsung said it would increase per-share dividends by 36% this year to 28,500 won (US$24.38).

The Guardian

Other News

Vietnam targets at least 10 large strategic technology firms by 2030

Vietnam targets at least 10 large strategic technology firms by 2030

Deputy Prime Minister Ho Quoc Dung has signed a decision approving a plan to develop large domestic strategic technology enterprises in the 2026–2030 period, aimed at advancing digital infrastructure, digital human resources, digital data, strategic technologies and cybersecurity.

Protecting users crucial in building digital trust: Experts

Protecting users crucial in building digital trust: Experts

In Vietnam, digital transformation in the finance and banking sector is accelerating cashless payments, expanding access to financial services, improving market transparency and supporting economic growth and macroeconomic management.

Fostering skilled workforce for innovation era: experts

Fostering skilled workforce for innovation era: experts

Experts said close coordination among State management agencies, research institutes, universities, and businesses will improve training quality and serve the dual goals of quality education and practical research application.

Startup forum bridges Silicon Valley and local innovation ecosystem

Startup forum bridges Silicon Valley and local innovation ecosystem

The University of Economics Ho Chi Minh City (UEH), Saigon Asset Management (SAM), and Plug and Play Tech Centre co-hosted the “From Vietnam to Silicon Valley” forum, exploring AI innovation, venture capital, and pathways to integrate Vietnam’s startup ecosystem with Silicon Valley and global markets.

Experts call for stronger action against fake news online

Experts call for stronger action against fake news online

Experts have warned that fake news, misinformation and harmful online content are increasingly shaping public perceptions, particularly among young people, and stressed the need for stronger legal safeguards, technology tools and wider dissemination of credible information to tackle the problem effectively.

Protecting digital future in post-quantum, AI era

Protecting digital future in post-quantum, AI era

Participants highlighted the importance of building a proactive, synchronised and sustainable national cybersecurity ecosystem through closer cooperation among regulators, technology firms, research institutions and cybersecurity experts.

Vietnam attends SAHA 2026 defence, aerospace exhibition in Türkiye

Vietnam attends SAHA 2026 defence, aerospace exhibition in Türkiye

Vietnam’s participation in SAHA 2026 International Defence & Aerospace Exhibition in Istanbul reflects the country’s consistent policy of enhancing international defence integration and promoting defence industry cooperation towards self-reliance, self-strengthening, modernisation and dual-use development.

SK Group partners to build AI ecosystem in Vietnam

SK Group partners to build AI ecosystem in Vietnam

SK Innovation and SK Telecom signed MoUs with Nghe An province and the National Innovation Centre of Vietnam to advance AI ecosystem development and support the country’s long-term growth strategy.

Vietnam Research Excellence Fellowship for 2026-2030 approved

Vietnam Research Excellence Fellowship for 2026-2030 approved

Under the Vietnam Research Excellence Fellowship (VREF) for the 2026–2030 period, PhD students are identified as a core research force directly contributing to breakthroughs in sci-tech and innovation. Investing in top-tier doctoral candidates is more than workforce development, but a high-stakes strategic bet to forge a cohort of world-class scientists and technologists who can power Vietnam’s long-term economic ambitions.