Who was arrested after Samsung Electronics Lee was arrested? Who is affected?

Who was arrested after Samsung Electronics Lee was arrested? Who is affected?

【World Wide Web Reporter Zhang Zhiying】 Samsung Lee was arrested in a case that caused a sensation in the entire country and shocked the technology industry. The Financial Times and the Wall Street Journal (WSJ) also issued an article commenting on the situation of the Samsung authorities today, pointing out that Samsung’s most influential successors: Vice President Wu Xiaoyu, President Yin Fugen, and President Shen Zongjun. The report also analyzed Samsung's business development and recently successfully completed the largest Harman merger in the history of Korea, continuing to seek new growth momentum. Of course, on the other hand, the recent crisis has also accelerated the urgent need for South Korea’s chaebols to face reforms.

The Financial Times said that the arrest of the leader of South Korea’s largest corporate group pushed the company to the edge of the cliff. Samsung management will need to reorganize immediately because the company’s impact on the Korean economy is too great. Samsung's total assets account for one-fifth of Korea's GDP and account for more than 30% of South Korea's total market value. People often call it the "Samsung Republic."

The 44-year-old Son Young-ho clearly remembered joining Samsung’s credit card company 20 years ago. “I was so proud to have started my career with Samsung because the company was in downtown Seoul and I feel protected in the future.” Like Son, hundreds of thousands of college students each year dream of wearing a blue-labeled work card, but only a few can join the company.

Li Zaiyu’s incident does not affect Samsung’s continued search for growth momentum

The bribery investigation has been suspended on Samsung's head. The arrest of Li Zaiyu was a critical moment for the company, but Shelley Jang, head of Fitch Rating's Asia-Pacific Enterprise, said: "The arrest of Li Zaiyu will not immediately affect Samsung's ratings." Point out that the company has a solid foundation and business advantages, as well as "market dominance and technology leadership."

Samsung benefited from the semiconductor business. In spite of the scandals, Samsung Electronics' profit continued to grow. In the fourth quarter of last year, Samsung’s operating profit increased by 50.2% to 9.22 trillion won.

Choi Do-yeon, an analyst at Kyobo Securities, said: “Since the second quarter, due to the trend of memory chip prices, Samsung’s operating profit is expected to reach 10 trillion won.” Due to strong demand for memory chips, analysts believe that this year's Samsung Will continue to earn considerable profits.

Although the arrest case did not immediately change the company's operations, Shelley Jang reminded that arrests will still have a negative impact on investor sentiment in the short term. She said that even if the professional manager team can manage the daily business, “long-term strategic investment decisions, such as important mergers or overseas expansion plans may be postponed.”

In November last year Samsung Electronics acquired Harman International Industries of the United States for US$8 billion. This is also the largest merger and acquisition in Korean history. Samsung obviously wants to become the largest company in the connected car solution market. The acquisition of Harman stated that Samsung is eager to acquire a new growth engine. In addition to smart cars, Samsung is also targeting biopharmaceutical and artificial intelligence technologies. These actions all require strong leadership and bold decisions. This has caused Li Zaiyu’s arrest to challenge Samsung’s situation.

Since reaching a record 2 million won on January 26, Samsung Electronics' share price has been sluggish. Another challenge facing the company is the smartphone market. In the fourth quarter of last year, Samsung’s global shipments were overtaken by Apple.

Who will replace Li Zai? Li Jianxi's influence should not be underestimated

According to the Financial Times, for market observers, one big question is who will replace Li Zaiyu because he is no longer an insider.

The three key senior executives of Samsung Electronics currently include: Vice President Wu Zhiyi, President Yin Fugen, and President Shen Zongjun. They are all strong competitors and they are all directors. "Even if Li was arrested, the three leaders would have no problem with the company," said Park Ju-gun, president of enterprise information provider CEO Score.

The five-year-old Mr. Wu has worked at Samsung for more than 30 years and is now responsible for the company's equipment solutions division, which includes the semiconductor business. The same 64-year-old Yin Fugen worked for Samsung for almost 40 years and has been working on improving television and other electronic products. He has been responsible for the consumer electronics sector for the past five years. In addition, the 61-year-old Shen Zongjun, who is in charge of IT and mobile communications, is an expert in mobile communications and has promoted the success of Samsung's smart phone business, although last year's Galaxy Note 7 failed to make his reputation impaired.

There is also a key figure that may affect the company, Samsung President Lee Kun Hee. If he passes the death, the expropriation of the inheritance tax in accordance with the laws of South Korea will exceed 50%, which may seriously affect Li Zaiyu’s succession plan; in addition, it may lead to the power struggle between the senior management appointed by Li Jianxi and the senior executive appointed by Li Zaishi. .

“Lee Jae-hyun may displace the executives appointed by Li Jianxi and consolidate his power within the group,” said Kim Sang-jo, a professor of economics at Seoul Hancheng University. For 20 years, Professor Kim has been leading minority shareholders against South Korea's chaebol system.

In the end, the death of Li Jianxi will mark the end of Samsung's second-generation leadership; under his leadership, Samsung has developed rapidly but at the expense of many workers’ rights.

Samsung incident pointed out that chaebols face reforms

Many people believe that time will help Samsung and other chaebols gradually reform their corporate governance, and Samsung has taken some actions to protect the interests of shareholders. In response to criticism from nine Korean directors, Samsung announced in November that it will increase at least one independent director with international corporate experience. Professor Kim Sang-jo said that Congress should amend commercial laws and introduce measures to strengthen shareholder rights, such as allowing them to vote online. National pension fund services should exercise their voting rights more actively to prevent the chaebol from placing profits on top of shareholder interests.

Samsung’s controversy includes that Li Zaiyi was charged with the payment of 43 billion won (approximately US$37.3 million) to the two foundations controlled by South Korean President Park Geun-hui honey choi Shun Suk-shih in exchange for political care. In addition, some of them worked at Samsung’s semiconductor factory. The former staff members and their families who were diagnosed with leukemia had held a sit-in rally in front of the general department of Samsung Gangnam District and asked Samsung to apologize and compensate. South Korean prosecutors accused Li Zaiyu of being involved in bribery, misappropriation of public funds, perjury, concealing overseas assets, and concealing proceeds from criminal activities.

In January of this year, the court dismissed the application of the special inspection team for the arrest of Li Zaiyu on the grounds of lack of evidence. However, as the investigation deepened, the special inspection team raided the Korean financial regulatory agency and anti-monopoly agency on 3 February. Li Zaiyu related documents. According to reports, the investigators collected evidence that Park Geun-hye, in order to repay Samsung’s bribe, put pressure on South Korea’s national pension fund services, and in 2015 voted to support the merger of Samsung C&T and First Knitwear. This controversial merger resulted in Li’s In this way, we have greatly strengthened our control over the group.

This merger transaction also prompted the United States hedge fund Elliott Associates launched a dispute over the proxy, which holds 7% stake in Samsung products. Elliott said the deal will cost shareholders about $7 billion. Finally, at the shareholders’ meeting, the South Korean Pension Fund Corporation, a pension fund controlled by the Korean government, cast a key vote. This vote favors the Li family, but it is unfavorable to minority shareholders. In South Korea, this scene is very common.

Kim Sang-bong, professor of philosophy at Korea National University of South Korea, likened the Samsung family of the Samsung to the Kim family of North Korea. He said: “Samsung is above the law and the country, similar to North Korea’s “great leader” over the Labor Party. On top of that, Samsung’s Lee family has uncontrollable power, which is unreasonable in a democratic country. The political power in South Korea serves the interests of Li Zai’s family.” Li Zaijun has been released since January 19th. Take action to fulfill the promise made at the congressional hearing.

South Korean prosecutors may also seek to undermine the more influential Samsung successor plan. If the Lee family no longer controls Samsung as a whole, then Samsung may adopt a more transparent structure, much like Hyundai did after its founder died in 2001. This will benefit Samsung shareholders.

The changing political atmosphere in South Korea may have a profound effect on other big companies. The Wall Street Journal believes that it exposes the governance defects of South Korean companies.

South Korean presidential candidates now promise that they will tighten Korean business law to protect the rights of minority shareholders and restrict the power of family power. If the next government of South Korea overdoes this, it may be detrimental to entrepreneurs. However, better corporate governance will help punish family business leaders and make the Korean economy more competitive.

Piezoelectric Material

Yuhai piezo materials include : hard piezo material, soft piezo material and lead free piezo material

Soft piezo material exhibits: larger piezoelectric constants, higher permittivity, larger dielectric constants, higher dielectric losses, larger electromechanical coupling factors, low mechanical quality factors, a lower coercive field, poor linearity, and is easier to depolarize. The ideal application of soft piezo materials is sensing needs. Yuhai soft pizeo materials are PZT-5, PZT-5H, PSnN-5 and PLiS-51.

Hard piezo material exhibits: smaller piezoelectric constants, lower permittivity, smaller dielectric constants, lower dielectric losses, smaller electromechanical coupling factors, high mechanical quality factors, a higher coercive field, better linearity, and is harder to depolarize. The ideal application of hard piezo materials is high power transducer needs. Yuhai hard pizeo materials are PZT-4, PZT-8, PCrN-4 and PBaS-4.

Yuhai company developped lead free piezo material BaTiO3 and apply for the Chinese Patent in 2011, to meet the needs of environmental protection in today's society.

Piezoelectric ceramic material

Properties and Classification

General description of material properties

Material Code



Soft PZT ceramic


Characteristics: larger piezoelectric constants, higher permittivity, larger dielectric constants, higher dielectric losses, larger electromechanical coupling factors, low mechanical quality factors, a lower coercive field, poor linearity, and is easier to depolarize.

low-power ultrasonic transducers


low-frequency sound transducers


applications with high g coefficient, for example,


microphones,vibration pickups with preamplifier


low-frequency vibration measurements


Hydrophones, transducers in medical diagnostics



Hard PZT ceramic


Characteristics: smaller piezoelectric constants, lower permittivity, smaller dielectric constants, lower dielectric losses, smaller electromechanical coupling factors, high mechanical quality factors, a higher coercive field, better linearity, and is harder to depolarize.


High-power acoustic applications


Hydroacoustics, sonar technology





Lead free piezo ceramic


Characteristics: Low density, low curie temperature, lead free.

Ultrasonic transducers suitable for low-temperature underwater, for example ultrasonic transducer in fishfinder

Piezoelectric Material,Piezo Ceramic Element,Piezo Electric Cylinder ,Piezo Sphere

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