November 24, 2024

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[THE INVESTOR] Samsung Life Insurance will sell off some of its shares in tech giant Samsung Electronics worth 1 trillion won (US$926 million) via a block deal, according to news reports on May 30.

Board members of the insurance arm of Samsung Group made the decision at a meeting on the day, and the stock sale will take place when the market openes on May 31, local economic news outlet ChosunBiz reported. 

Samsung Insurance holds an 8.23 stake in the tech company, equivalent to some 26 trillion won.

The move came amid the increasing pressure from the government authorities, politicians and civil groups for the nation’s largest conglomerate to resolve the complex crossholding structure, which helps the owner family to maintain the control over the Samsung affiliates with a small amount of shares.

Since his inauguration last year, Kim Sang-jo, chief of the Fair Trade Commission, the nation’s antitrust watchdog, has urged Samsung to speed up the pace to streamline the labyrinthine ownership structure of the conglomerate that has more than 60 affiliates under its arm.

Choi Jong-ku, chairman of Financial Services Commission, has also publicly said Samsung needs to come up with solutions to resolve the firm’s governance issues.

Samsung Electronics' stock closed at 49,500 won, down 3.51 percent.

By Kim Young-won (wone0102@heraldcorp.com)