[Courtesy of Harman International Industries]
With the control tower of South Korea's largest conglomerate, Samsung Group, in limbo, a crucial deal pushed by the world's largest smartphone maker to tap into the connected car industry faces an uncertain future due to a lawsuit filed by US shareholders.
Samsung Electronics, the group's flagship unit controlled by vice chairman J. Y. Lee, has stepped up efforts to develop auto-related technology and software about components, in-car entertainment, and autonomous driving.
In November, Samsung acquired Harman International Industries, a US-based global leader in connected car technology, for about eight billion US dollars. Harman provides infotainment and car security systems for BMW and Mercedes-Benz.
It was the biggest acquisition of foreign companies by a South Korean company, and Samsung was upbeat at the time, saying the deal would help the world's largest smartphone and microchip producer diversify its business portfolio into the rapidly growing market for connected technologies and auto electronics.
The acquisition marked Samsung's biggest investment outside South Korea under the leadership of Jay Y. Lee, the only son of bed-ridden group chief Lee Kun-Hee, 74. On behalf of his father, the 48-year-old has sought to realign Samsung's bloated structure before making his official debut as group leader.
All of a sudden, Samsung was trapped in unforeseen affairs at home and abroad, starting with a debacle caused by its fire-prone flagship smartphone that has seriously damaged its brand value and reliability.
More embarrassing is a travel ban imposed by investigators in connection with a corruption scandal engulfing President Park Geun-hye. Lee has been ordered to stay at home pending an investigation of his alleged role in the group's cash donation to Park's crony, Choi Soon-sil, who was accused of siphoning off money from top conglomerates.
In the United States, investors have filed a lawsuit opposing Samsung's proposed takeover of Harman International, claiming it was sold too cheaply via an unfair process. The deal requires a majority of votes at a meeting of shareholders, but Samsung's leadership entangled in a scandal at home has no chance to win their support.
reporter
Park Sae-jin
swatchsjp@ajunews.com
![[CES2024] Samsung and Harman introduce future of next-generation vehicles](https://image.ajunews.com/content/image/2024/01/10/20240110155325398641.jpg)
