Samsung Chairman Lee Kun-hee’s wealth ranks 60th in the world

The wealth of Samsung Electronics Chairman Lee Kun-hee has increased 3 billion U.S. dollars from the beginning of this year thanks to skyrocketing Samsung Electronics shares, which hit all-time highs day after day. Chairman Lee has seen his combined wealth increase 25.4 percent this year.

According to the world’s 500 richest people (as of Friday) announced by Bloomberg on Sunday, Chairman Lee possesses 14.6 billion dollars in combined wealth, ranking 60th in the world, and No. 1 in Korea.

The value of listed company shares in his possession alone amounted to 14.44 trillion won (12.31 billion dollars) as of Friday (according to chaebol.com), as Chairman Lee saw his wealth soar 3.23 trillion won (2.76 billion dollars), or 28.9 percent, from early this year. Samsung Electronics stock, which soared from 1.2 million won (1,023 dollars) per share up to 1.8 million won (1,535 dollars) over the period, is the biggest contributor to Lee’s snowballing wealth. The stockholding value of Hong Ra-hee, wife of Lee and director of Leeum Samsung Museum of Art, also increased by 47.7 percent, or 622.8 billion won (531 million dollars), to hit nearly 2 trillion won (1.71 billion dollars).

Samsung Life Insurance has also posted more than 5 trillion won (4.26 billion dollars) in valuation gains from its Samsung Electronics stockholdings. According to financial information service provider FnGuide, Samsung Life has raked in 5.87 trillion won (as of Thursday) in valuation gains from its 7.88 percent stake in Samsung Electronics alone since early this year. The insurance company has posted overall gains of 6.40 trillion won (5.46 billion dollars) from its major stakes (a stake of 5 percent or more) in companies this year, with its gains from Samsung Electronics stake accounting for 91.7 percent of the gains.

Securities industry insiders note that Samsung has now ample cash that could be used in the course of transfer of managerial control to the third generation Samsung owners. If Samsung Life is to transition into a financial holding company, it should sell its stake in Samsung Electronics, which is a non-financial affiliate, to the level of 5 percent or under, and if Samsung Electronics share sustains at the current level, Samsung Life will have corresponding gains from the disposal of its Samsung Electronics stake in proportion.

The value of Samsung Electronics stakes held by Samsung C&T and Samsung Fire Insurance has also soared in tandem as well. Samsung C&T and Samsung Fire, each of which owns 4.25 percent stake and 1.32 percent of Samsung Electronics, have seen the value of its Samsung Electronics stake increase by 3.1 trillion won (2.64 billion dollars) and 980 billion won (835 million dollars), respectively, since early this year.

Ji-Hyun Kim jhk85@donga.com