
The second episode of Inheritance: Samsung sees the company grow into a global tech giant
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Ever invest in something that seemed incredible at first but didn't live up to the hype? Like those five dollar roses at a gas station? Or a secondhand piece of technology that breaks in the first 10 minutes? Marketers know that feeling. We optimize for the numbers that look great, impressions reach and reacts. But when they don't show revenue, well, that's a not so great conversation with the CFO. LinkedIn has a word for bullspend. Now you can invest in what looks good to your CFO. LinkedIn ads generates the highest ROAS of all major ad networks. You'll reach the right buyers because you can target by company, industry, job title and more. So cut the bull. Spend. Advertise on LinkedIn, the network that works for you. Spend $250 on your first campaign on LinkedIn ads and get a 250 credit for the next one. Just go to LinkedIn.com Broadcast that's LinkedIn.com Broadcast. Terms and conditions apply. Here's episode two of Inheritance Samsung. If you haven't listened to episode one, go back now.
South Korean Business Reporter
I first remember that there were rumors about KH Lee being in poor health, but there was no confirmation. Of course, Samsung is very secretive about that kind of issue.
Narrator/Documentary Host
It's May 2014, a year before shareholders will gather for that controversial vote on the merger between two important Samsung businesses. Jae Yon Lee, like many South Koreans, has been aware of the Samsung leader's declining health for some time.
South Korean Business Reporter
And then I remember seeing on the news that he had had a heart attack and was taken to the hospital, and people started to sense that maybe the end of an era was coming.
Narrator/Documentary Host
That was a week ago. The Samsung chairman, KH Lee, lies still in a hospital bed. Machines rhythmically beep and whirr and hiss. His son, Lee Jae Yong, or as we're calling him, Jae Y. Lee, has returned from a business trip in the U.S. the hectic life of Samsung's emergency boss is on a brief pause, because that's what J.Y. lee is now his formal succession is still far from secure. But for now, he's the obvious stopgap. The conglomerate's best known business, Samsung Electronics, is one of the most profitable tech firms in the world. But it has to compete to stay that way. There's a lot going on. A costly business war rumbles on in the courtroom against American tech giant Apple as new smartphone makers try to chip away at Samsung's global dominance. What the Samsung empire needs right now is stability. KH Lee had grown visibly frail ever since his cancer diagnosis more than a decade ago. He'd had lung problems and just last year he'd been hospitalized with pneumonia.
Business and Technology Journalist (Jeffrey Kane)
He wasn't giving the grand speeches anymore and he had delegated a lot of responsibility to his executives to take care of the company for him.
Narrator/Documentary Host
The business and technology journalist Jeffrey Kane remembers KH Lee's retreat from the spotlight.
Business and Technology Journalist (Jeffrey Kane)
He spent many of his elder years in his house in Seoul, which is called Seungji Won. It is a gorgeous palatial estate at the top of a hill in the central part of Seoul.
Narrator/Documentary Host
Chairman KH Lee had been taken to hospital for emergency heart surgery. He's been in a coma ever since. SEO Jin Lim is co director of the International Institute of Korean Studies at the University of Lancashire in England. She was born and raised in Seoul.
SEO Jin Lim, Co-Director of the International Institute of Korean Studies
When we heard that KH Lee had a heart attack, it was quite a significant moment for the people who would think, oh, what would happen in Samsung and especially for the older generation who grew up with most of the mid age life with South Korea's economic development period. They were quite shocked and worried about the future of Korea's economy then because Samsung was the very significant the leader of the economy for them.
Narrator/Documentary Host
Over the 25 years that he had run Samsung, KH Lee had transformed it from a successful Korean chaebol family business into a global maker of smartphones, TVs and memory chips. Its influence in South Korean life is all encompassing. From hospitals and schools to hotels and baseball, it's known by many as the Republic of Samsung. And as the company's fortunes have lifted, so too have South Korea's. Samsung's annual sales account for one fifth of the country's gdp. But now, with the chairman close to death, the question is, who will take his place? Jae Yon Lee reporter at South Korean
South Korean Business Reporter
newspaper Hangyer It's a bit sexiest, I think, but in Korean chaebol there is this tradition where only the sons inherit the important businesses. And J.Y. lee was the only son in the family, so people automatically thought that he would inherit what wasn't as Obvious, I think, was whether he was really prepared for that role.
Narrator/Documentary Host
For years, Jay Wy Lee's father had been preparing his son to one day take over the family firm. Since the early 1990s, he'd cycled through all the sorts of roles you'd expect of someone being groomed for the top job. Chief customer officer, chief operating officer. Now he's vice chairman, just one rung from the top of the ladder, but he has enormous shoes to fill.
South Korean Business Reporter
From what could be seen, his character was just really different from that of his father. While his father was seen as very aggressive and just very goal oriented, Jay Wiley was seen as more shy and quiet and cautious, a little bit aloof,
Business and Technology Journalist (Jeffrey Kane)
a little bit unsure.
Narrator/Documentary Host
And he isn't one for publicity. He doesn't do product launches, he doesn't do interviews. He isn't prey for the paparazzi. He hasn't captured the hearts of South Koreans. His eldest sister, on the other hand,
Business and Technology Journalist (Jeffrey Kane)
she was seen as sharp, likable, intelligent. She had a bit of glamour around her. She's really into fashion. And so one of the things about the Lee family, South Korean paparazzi and tabloid media, they just go wild for them. They're always trying to watch, you know, what handbag does she have? What car is she driving?
Narrator/Documentary Host
She's also proven herself in business. Some are talking her up as a leadership rival. To her brother, J.Y.
Business and Technology Journalist (Jeffrey Kane)
lee, she was seen as a more capable leader. She got the nickname the little KH Lee.
Narrator/Documentary Host
But there's a snag for both of them. Although a series of gifts, mergers and stock flotations over the last 20 years has gradually shifted control of most of the empire to KH Lee's wife and children. The project to secure family control of Samsung isn't finished. Whoever takes control of the company will have to complete the complex plan. And that's not all. Elderly KH Lee has become one of the richest men in South Korea, a country with one of the highest rates of inheritance tax in the world, up to 60%. Whoever takes the crown will be on the hook for a Fortune more than $5 billion. Jay Wiley is rich.
Business and Technology Journalist (Jeffrey Kane)
He's a billionaire. But he doesn't have enough money raised yet to be able to pay the inheritance tax.
Narrator/Documentary Host
His riches are in Samsung shares, not cash.
Business and Technology Journalist (Jeffrey Kane)
If he were to start offloading his shares and selling parts of the company, he would dilute his ownership and he would end up not being in control of Samsung. That's the core problem.
Narrator/Documentary Host
J.Y. lee will have to move fast. I'm Elise Hu from the BBC World Service. This is Inheritance the stories of the families behind some of the world's biggest companies. Our journalists have scoured the archives, combed through memoirs and hand picked experienced observers to take you inside these dynasties. At times, we'll recreate as faithfully as we can, the pivotal moments, all to understand how powerful empires are built and passed on. Season 1 Samsung Episode 2 of 10 Move fast and Break Things. To understand why Chairman KH Lee's heart attack is so devastating, not only on a human level, but for the business, we first need to understand why the family and why Samsung is so complicated. And to do that we need to go back more than five decades before J.Y. lee and his father K.H. lee, to Samsung's first chairman, J.Y. lee's grandfather, to the man who founded the company. His name is Lee Byung Chul. BC Lee. It's June 1961 and BC Lee steps out of the bright summer sunshine and into a cavernous room. As his eyes adjust to the light, he no doubt takes in his surroundings. A hard stone floor, flag draped walls, soldiers in crisp fatigues flanking each entrance at the other end of the room waits a man. A man with the power to snatch away everything BC Lee has spent his last two decades building. BC Lee had tried to avoid this moment altogether, but his country is in crisis. The previous April, a student led uprising fueled by anger at poverty, government corruption and repression had toppled South Korea's autocratic President Syngman Rhee. In the months that followed, B.C. lee could only watch helplessly as Samsung's offices were raided, assets confiscated and his own tax affairs pulled apart. Protesters had unjustly, in B.C. lee's view, accused chaebols, large family businesses like his own, of crony capitalism. It's when companies thrive not through free and fair competition, but by sidling up to those in power, even paying them bribes to turn a blind eye to malpractice. But the unrest didn't stop there.
Narrator/Host
In first pictures from Seoul, following the pre dawn military coup that overthrew the South Korean government, troops guard public buildings in the early hours of martial law
Narrator/Documentary Host
proclaimed by the the man at the end of the room who has summoned the Samsung chairman is Park Joong Hee, the general who has just taken power in a military coup. He is wary of people like BC Lee.
Business and Technology Journalist (Jeffrey Kane)
When Park Chung Hee, the original dictator of South Korea, took power, he hated these companies. He thought that they were a bane to the existence of this republic he was trying to build. And the reason he thought that was because he thought that family wealth, family Aristocracy is antithetical to building a modern republic. That's what he wanted for Korea.
Narrator/Documentary Host
The country is still suffering economic hardship following the Korean War a decade earlier. It was a battle that split the country into communist north and capitalist south, each backed by Cold War rivals who wanted control of the Korean peninsula. And when the General Park Jung Hee took over, he kind of wanted to
SEO Jin Lim, Co-Director of the International Institute of Korean Studies
remove the accusation by the people that this government is corrupt.
Narrator/Documentary Host
He wanted to consolidate his grip on power. And punishing the powerful but unpopular chaebol owners was a popular move. And one of the biggest chaebols at this time is Samsung.
Business and Technology Journalist (Jeffrey Kane)
BC Lee had this reputation for being the freewheeling wealthy playboy of Korea. He was the richest man in the 1950s.
Narrator/Documentary Host
B.C. lee had started Samsung in 1938 as a fruit and vegetable business, exporting produce to China. The name literally means three stars. Sam meaning three, but also in Korean, symbolizing big and strong, and sung meaning stars and symbolizing, well, shining brightly. For B.C. lee, it perfectly encapsulates his vision for the company. By the 1950s, the business had grown, acquiring a sugar refining firm, a wool spinning plant, a brewery, some banks, an insurance company, and a university. BC Lee was not the kind of guy to put all of his eggs in one basket.
Business and Technology Journalist (Jeffrey Kane)
When the coup d' etat happened, B.C. lee was in a hotel in Japan.
Narrator/Documentary Host
Japan was his refuge. When he was able to escape there, it was like a second home and where he'd spent many years studying as a young man, he'd been getting ready for an early morning round of golf. When his Japanese driver had told him about the coup, he'd felt anxious, though not enough to postpone the round. But a few days later, according to B.C. lee's autobiography, the source for much of
Business and Technology Journalist (Jeffrey Kane)
this information, two government agents showed up at his hotel in Japan. They left the note telling him to return to South Korea or else.
Narrator/Documentary Host
Back in that cavernous room, B.C. lee feels the hard stare of a short, stern looking man.
Business and Technology Journalist (Jeffrey Kane)
Park Chung Hee really has this military martial ethos to him. He's a military man. He served in the Japanese colonial military in the past and. And he's very much a dictator. He's not friendly to B.C. lee, and it's clear from this meeting that he will put BC Lee in jail if BC Lee does not cooperate with the government.
Narrator/Documentary Host
Perhaps. The light glints off the man's sunglasses unnervingly as he strides towards him.
Business and Technology Journalist (Jeffrey Kane)
And so President park said, you can say anything, so speak without reservations.
Narrator/Documentary Host
Is this a trap? Does General park expect him to apologize? Is he looking for a bribe.
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Narrator/Host
Ever invest in something that seemed incredible at first but didn't live up to the hype? Like those five dollar roses at a gas station? Or a secondhand piece of technology that breaks in the first 10 minutes? Marketers know that feeling. We optimize for the numbers that look great. Impressions reach and reacts. But when they don't show revenue, well, that's a not so great conversation with the CFO. LinkedIn has a word for that. Bullspend. Now you can invest in what looks good to your CFO. LinkedIn Ads generates the highest roas of all major ad networks. You'll reach the right buyers because you can target by company, industry, job title and more. So cut the bull. Spend. Advertise on LinkedIn, the network that works for you. Spend $250 on your first campaign on LinkedIn ads and get a 250 credit for the next one. Just go to LinkedIn.com broadcast that's LinkedIn.com broadcast. Terms and conditions apply.
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Narrator/Documentary Host
BC Lee needs to tread carefully with South Korea's new leader. But in this moment, as he writes in his autobiography, he decides the best policy is to speak his mind. It's A gamble. Other chaebol owners have just been sent to prison by the new dictator, he tells the general. He doesn't believe there's anything wrong in businessmen accumulating wealth.
Business and Technology Journalist (Jeffrey Kane)
So BC Made his case that he would work for the national interest.
Narrator/Documentary Host
Businesses create jobs, he tells the general, which improve livelihoods, which raise taxes, which pay for national defense. Schools, roads, ports. How can South Korea climb out of poverty, B.C. urges, without its giants of capitalism?
Business and Technology Journalist (Jeffrey Kane)
But Park Chung Hee first shot back. He said the people will not accept this solution.
Narrator/Documentary Host
Maybe they won't, but then it's the job of politics to convince them. B.C. tells him, feeling bolder, more on the front foot now.
Business and Technology Journalist (Jeffrey Kane)
And so the grand bargain, he decided, would be that prison time would be pointless for BC Lee because that would strip Samsung of its uses. BC Lee and Samsung were still extremely useful to South Korea. But instead, B.C. lee would have to pay up. And so he had to give up his three banks to the government. He also had to pay $4.4 million in today's money in unpaid taxes and
Narrator/Documentary Host
penalties, but at least no prison. The deal is clear. Samsung can survive. But only if it does Park Chung Hee's bidding. April 1967. Six years since B? Sili stood in front of Park Chung Hee. A curious collection of men stand in a small, small fishing town of Ulsan in the southeast of the country. They're here for a dedication ceremony. Korean farmers wearing wide, brimmed hats stand alongside men in suits, businessmen and politicians. Spring mists hang above the fields. But there's something else. Clouds of pungent air engulf the men. A stench of rotten eggs belched from the tower of a vast, newly built fertilizer factory. Presiding over the opening ceremony is the man who built it, B.C. lee, the chairman of Samsung. As a boy growing up in rural Korea, B.C. lee had witnessed farmers struggling to get enough food from the land. He'd wanted to help his country become more self sufficient. The timing, the finances, had never quite been right. But when the newly installed dictator, who had been elevated from General to president in 1963, had offered him an ultimatum, let's just say the moment suddenly felt right.
SEO Jin Lim, Co-Director of the International Institute of Korean Studies
President park ordered Samsung to open the factory. President park was known to understand the importance of the agricultural sector development because he himself was from those rural places. And also, the fertilizer was quite a significant thing. To achieve the development, Park Chung Hee
Narrator/Documentary Host
had begun harnessing the power and money of chaebols to build a new, modern South Korea.
SEO Jin Lim, Co-Director of the International Institute of Korean Studies
Because everybody was so poor and most of the people lost their land properties by The Japanese. So around that time, at the rural places, you just exchange, for example, your rice with your clothes for something like that.
Narrator/Documentary Host
South Korea had a barter economy, a far cry from the thriving, export driven, taxpaying population the President wanted. He had a lot of work to do, almost starting from scratch. And to understand why, we need to travel a little further back in time. Up until relatively recently, South Korea had been part of the Japanese empire. It's all B.C. lee had known from his birth in 1910 to the end of World War II and Japan's defeat. B.C. lee himself had worked with Japanese businessmen and politicians to get Samsung started in those early days in the late 1930s, it was the Japanese, when they occupied the peninsula in the early 20th century, who had built Korean infrastructure.
SEO Jin Lim, Co-Director of the International Institute of Korean Studies
Most of the factories, the railway facilities, were built by Japanese in northern side of Korean peninsula because that was a way to go up to Manchuria.
Narrator/Documentary Host
Manchuria, where the Korean peninsula meets China. The south, though, largely missed out.
SEO Jin Lim, Co-Director of the International Institute of Korean Studies
So in southern part of Korean peninsula, we didn't have those kind of facilities. And also the natural mineral resources in South Korea was a lot less than the north side.
Narrator/Documentary Host
That's the situation when the Japanese Empire is defeated and collapses in the 1940s and its grip on Korea ends. And it meant that when the peninsula was split in two along the 38th parallel following the Korean War of the early 1950s, the south lost out.
SEO Jin Lim, Co-Director of the International Institute of Korean Studies
There was literally nothing for South Koreans to start with. Some people even compared the South Korean economy that time was lower than the North Korean economy.
Narrator/Documentary Host
B.C. lee's country had been dependent on aid from the U.S. ever since. In fact, his reason for starting Samsung had been to try and change that. And this fertilizer factory, despite the ultimatum, had the potential to do good. It had taken 18 months to build. Record quick time. Dozens of cargo ships groaning under the weight of chemicals, construction materials and heavy machinery had crossed the Sea of Japan and docked at the purpose built pier in Ulsan Port. But not all of the new raw materials, it seems, had been bound for the new factory.
Business and Technology Journalist (Jeffrey Kane)
Some of the chemicals that were brought in the country to make this fertilizer were sold to a saccharin processing firm for a $40,000 profit. This was another big industry in South Korea at the time.
Narrator/Documentary Host
Saccharin, the artificial sweetener, is big business. And it seems someone has set up a rather profitable sideline. The reports about what exactly was smuggled differ whether it was saccharin itself or the ingredients to make it. And we're not sure if the goods were stolen from the fertilizer project, as Jeff suggests, or whether the factory build was used as a cover to smuggle in something else. But whatever happened, the point is this fertilizer plant had nothing to do with sweeteners. And whoever was pocketing the proceeds was breaking the law. And then somehow word had got out.
Business and Technology Journalist (Jeffrey Kane)
The government made a big deal out of this. They launched a crackdown. President park said that this was a major crime against national integrity.
Narrator/Documentary Host
It became a huge scandal. The news that someone had been enriching themselves under the cloak of a project designed to lift all South Koreans out of poverty. The scandal had led to angry scenes in South Korea's National Assembly. Some politicians thought the government was in on it. One assemblyman, a former gangster and activist with a feisty reputation, had launched into a tirade carrying a three gallon bucket marked saccharine. Once he'd finished, he prized off the lid, dashed over to where the ministers were sitting and thrown the contents over
Business and Technology Journalist (Jeffrey Kane)
them and shouted, eat this saccharine. What was in the bag was actually human feces.
Narrator/Documentary Host
Jeff's being polite. What the politician actually said was eat. Well, you can guess it still begins with an S. The secret sideline had become a national uproar. And it wasn't just politicians in the firing line. The second of B.C. lee's three sons, Lee Chang Hee, had been in charge of the fertilizer project on behalf of Samsung. He was accused of being in on it or at best asleep at the wheel. The president needed to sacrifice someone and however you looked at it, the finger was pointed firmly at him. BC Lee even says he will step down as Samsung chairman.
Business and Technology Journalist (Jeffrey Kane)
The government pressure was relentless. And it's not just government pressure, but public pressure. The national assembly was upset. And you have to remember, BC Lee was not a popular guy. He was seen as somebody who had worked with Japan in the past. He was a capitalist who made his money under Japanese colonialism and. And so anything out of line would have been enough to rile the public anger at him. So stepping down from Samsung, this was an attempt to try to show that he was humbled by all this, that he would do what he could to make this right. And then he surrendered the fertilizer plant to show that he was serious.
Narrator/Documentary Host
The factory he dreamed of running to help lift his country out of poverty had simply been handed over to the government. What else could he do? But it wasn't enough. BC Lee's son was still sentenced to prison. Back to that misty egg smelling opening ceremony, what B.C. lee had hoped would be a new beginning for his business is now little more than a handover. But the whole ordeal had left Samsung with a much bigger problem. Now that B.C. lee has stepped down as chairman, the company needs someone else to take his place. B.C. lee has three sons. One is in prison and there are big question marks over the other two. So who's he going to choose? That's next time on Inheritance.
South Korean Business Reporter
Sam.
Narrator/Host
Ever invest in something that seemed incredible at first but didn't live up to the hype? Like those $5 roses at a gas station? Or a second hand piece of technology that breaks in the first 10 minutes? Marketers know that feeling. We optimize for the numbers that look great, impressions reach and reacts. But when they don't show revenue, well, that's a not so great conversation with the CFO. LinkedIn has a word for bullspend. Now you can invest in what looks good to your CFO. LinkedIn Ads generates the highest roas of all major ad networks. You'll reach the right buyers because you can target by company, industry, job title and more. So cut the bull. Spend. Advertise on LinkedIn, the network that works for you. Spend $250 on your first campaign on LinkedIn ads and get a 250 credit for the next one. Just go to LinkedIn.com Broadcast. That's LinkedIn.com Broadcast. Terms and conditions apply.
BBC World Service | April 29, 2026
Hosts: Simon Jack and Zing Tsjeng (series hosts – narration and investigation by Elise Hu for "Inheritance")
This episode delves into the dramatic and high-stakes story of the Lee family, heirs and leaders of Samsung—South Korea’s largest conglomerate. The focus is on moments of crisis and transition: the near-death and subsequent coma of longtime chairman KH Lee, and how his incapacitation throws both the family and the company into uncertainty. The episode also explores the origins of Samsung under Lee Byung-chul (BC Lee), and the fraught relationship between the family, the government, and the Korean public, revealing how Samsung’s fate has often been intertwined with historical events and national identity.
KH Lee’s Health Decline
Immediate Impact on Samsung
Origins with BC Lee (Lee Byung-chul)
The "Grand Bargain" with Power
A State-Ordered Project Goes Awry
Family Fallout
On South Korea’s reliance on Samsung:
On corporate succession pressure:
On JY Lee’s dilemma:
On BC Lee’s negotiating style:
On public outrage:
The narration maintains a suspenseful, investigative journalistic tone, drawing on archival research and expert commentary. There’s a balance of vivid scene-setting (hospital, boardrooms, factories) and candid, sometimes wry, observations about the interplay between money, politics, and family.
This episode illuminates the fiercely intertwined destinies of Samsung, the Lee family, and modern South Korea. It captures the drama and fragility of inherited power, exposing the immense pressures and scandals that have shaped the company’s legacy. By dramatizing both past and present, the episode provides a nuanced understanding of how the Lee dynasty’s struggle for succession and survival reflects—and continues to influence—the national story.