Samsung Family Submits Application to Financial Services Commission for Approval of Major Shareholder Change in Samsung Life Insurance

[Image source=Yonhap News]

[Asia Economy Reporter Lee Gwan-joo] = It has been confirmed that the Samsung family submitted an application for major shareholder change approval to the financial authorities on the 26th.

The application states that the Samsung Life Insurance shares (20.76%) held by the late Chairman Lee Kun-hee of Samsung Electronics will be shared among four individuals: Vice Chairman Lee Jae-yong of Samsung Electronics, Mrs. Hong Ra-hee, President Lee Boo-jin of Hotel Shilla, and Chairwoman Lee Seo-hyun of the Samsung Welfare Foundation.

According to the "Act on the Corporate Governance of Financial Companies," when acquiring shares through inheritance or other means and becoming a major shareholder of an insurance company, approval must be applied for from the Financial Services Commission within the designated period.

Once the Financial Services Commission receives the application for change approval, it must decide whether to approve within 60 days. However, if there are deficiencies, it can request supplementation, and the supplementation period is not included in the review period.

Vice Chairman Lee Jae-yong does not need to obtain separate approval this time since he had already received approval from the Financial Services Commission as a related party of Chairman Lee Kun-hee, the largest shareholder, when acquiring 0.06% of Samsung Life Insurance shares in 2014. Accordingly, the Financial Services Commission will review whether Mrs. Hong Ra-hee, President Lee Boo-jin, and Chairwoman Lee Seo-hyun meet the major shareholder requirements.

The Financial Services Commission will examine whether there are any disqualifications for executives, whether they have sufficient investment capability and sound financial status, and whether there have been any acts that undermine sound financial transaction order.

Previously, Mrs. Hong Ra-hee, President Lee Boo-jin, and Chairwoman Lee Seo-hyun applied to the Financial Services Commission to extend the application period for major shareholder change approval and received approval. When acquiring shares through inheritance, approval must be applied for within three months from the date of death, but this period can be extended up to three months.

This content was produced with the assistance of AI translation services.