Samsung renews his command in the midst of the chaos for the Note 7 – Financial

Lee Jae-yong, the heir of the family that controls the Samsung Group, is about to get the corporate power expanded. Now comes the guessing game about what they will do with it.

on Thursday, Lee, 48 years old, and known as Jay Y., will join officially to a board of nine people in Samsung Electronics whose failed implementation in the operation of the smart phone Galaxy Note 7 has given a blow to a brand of first level, and that has cost the company billions of dollars in profits.

His ascension comes on the same day in which Samsung reported a sharp fall in profits after withdraw from the market its phones Note 7.

Lee already is vice president of Samsung Electronics and has gained influence since his father, Lee Kun-hee, suffered a heart attack and was hospitalized in 2014.

The foundation of Lee family controls the companies of the Samsung group, whose tentacles are spread in financial services, hotels, biopharmaceutical and fashion, through a complex network of cross-ownership. Somehow, the elevation of Lee to the board of the badge will be something like a coronation.

SAMSUNG, IN A BATTLE TO STOP THE FIRE

“we can Now say that the regime of Lee has officially begun,” said Lee Chaiwon, chief investment officer of Midas Asset Management. “I think that a new era is coming.”

Lee believes that the greater influence of Jay Y will be a shot of adrenaline for a company in crisis. “The company will be more favorable to the market,” he said, predicting that the new board member is going to “accelerate its restructuring process.”

Samsung Electronics is not short of challenges. In addition to the remnants after the fiasco of the Galaxy Note 7, the youngest of the Lee faces a threat from activist hedge funds Elliott Management Corp, which is persionando to electronics to simplify its structure owners. The fund, with headquarters in New York city, founded by the shareholder Paul Singer, also wants the company to add independent directors, and give out a special bonus of $ 27 billion to investors.

“To be a board member means the responsibility of management,” said Heo Pil-suk, executive director of Midas Asset Management. “The market is going to wait for Lee to arrive with some follow-up measures to solve the problem of Note 7“.