Tech giant Samsung Electronics is likely to be spun off as part of Samsung Group’s ownership restructuring, an analyst said Monday.

As per the plans, various affiliates will be clubbed under two groups -- Samsung Electronics and Samsung Life Insurance.


Since 2013, Samsung Group has sought to reorganize affiliates vertically under electronics and finance business, ease cross-shareholding structure among subsidiaries, and sell noncore businesses.

As the first step, the group will seek Samsung Life Insurance’s transition into a financial holding company to tighten control of financial subsidiaries and ease grip of the electronics firm, said Lee Sang-heon, an analyst at Hi Investment & Securities.

Then, Samsung Electronics will seek a spin-off, enabling Samsung Life’s financial holding company to sell part of the electronics’ nonoperating business section to Samsung C&T, he said.

“The big prerequisite for Samsung Group’s transition of ownership structure will be how much stake Samsung C&T, a de facto holding company, can secure in Samsung Electronics,” Lee said.

Once the pending bill that allows an intermediary financial holding company to own financial subsidiaries is passed, Samsung C&T and Samsung Electronics’ nonoperation part will eventually merge to secure Samsung C&T’s stronger control in the insurer and the electronics firm, he expected.

By securing a stable stake in the electronics firm, chairman Lee Kun-hee’s three children -- Samsung Electronics vice chairman Lee Jae-yong, Hotel Shilla president Lee Boo-jin and Samsung C&T fashion division president Lee Seo-hyun -- will be able to cement control over Samsung Group in the post-Lee Kun-hee era, the analyst said.

By Kim Yoon-mi (yoonmi@heraldcorp.com)