Economist Hails Samsung's Modernization Moves

The Economist magazine has hailed the Samsung Group for developing from the typical model of an Asian family firm into a global conglomerate.

In a special report on business in Asia titled "Avoiding the dinosaur trap," the weekly praises Samsung chief Lee Kun-hee for "introducing merit-based pay and hiring foreigners" since the 1990s.

The article, which sharply criticizes the way Asian businesses are run, points out that Samsung has moved away from the Japanese-style "sprawling" expansion into any and all sectors, and is becoming more focused on the core subsidiary Samsung Electronics.

Lee's son Jae-yong "is poised to succeed him, but the family directly controls only a small proportion of the shares, and institutional investors now have about $150 billion at stake."

A fervent advocate of globalization, the Economist suggests that other Asian firms must follow Samsung's lead if they are to thrive. / Jun. 02, 2014 10:03 KST