Samsung began as a humble trading firm in 1938. Today it generates over 20% of South Korea’s GDP. But beneath its meteoric rise lies a problem older than semiconductors: family control without ethical clarity. The Lee family’s iron grip has delivered power, yet not always wisdom.
Now, with missed innovation windows, shareholder unrest, and a $122 billion stock collapse, the cracks are no longer hidden. This isn’t just Samsung’s story. It’s a global pattern — one that echoes through family businesses and long-wave economic cycles alike.
When Legacy Becomes a Liability
Family businesses often begin with hunger, adaptability, and courage.
But three generations in, the story changes.
What was once a mission becomes inheritance.
What was once earned becomes assumed.
Samsung’s culture of centralised control brought consistency — but also rigidity. While rivals like Nvidia and TSMC leaned into AI, Samsung held fast to old formulas. And the cost? A lost contract, investor panic, and market shrinkage in real time.
This isn’t unique. It’s a pattern.
And it shows up across family businesses when legacy is worshipped, but not renewed.
A World Cycle in Motion
The world moves in rhythms — not lines.
We are now exiting a long season of expansion, leverage, and global trust. What replaces it is a more volatile phase:
Power shifting from West to East
Innovation outpacing governance
Institutions losing public confidence
In this environment, family businesses, especially dynasties, are tested at their foundations.
Those who relied on status are falling.
Those who lead with values are adapting.
Samsung’s problems aren’t just internal.
They’re cyclical — and they reflect a global transition many aren’t prepared for.
Tradition Alone Doesn’t Scale
The Lee family’s dominance of Samsung gave them control, but not foresight.
Innovation stalled. Ethics slipped. Power became the priority.
Compare that to the Mogi family of Japan — owners of Kikkoman since 1603.
Their strategy? Spiritual integrity, not corporate spin.
Where Samsung reached for the courtroom, Kikkoman reached for community.
Where Samsung centralised, Kikkoman cultivated.
One focused on control.
The other, continuity.
Frequently Asked Questions
1. Isn’t centralised family control a strength?
Only when it’s paired with shared governance, clear values, and a willingness to evolve. Otherwise, it becomes a bottleneck.
2. How does this apply to smaller family businesses?
Size doesn’t matter. The same dynamics play out: unclear succession, unspoken power struggles, outdated leadership models — all can erode trust from the inside.
3. What do you mean by ‘world cycles’?
Civilisations move in predictable patterns, from creation to expansion, excess to collapse. Samsung’s decline mirrors a wider economic and cultural shift where inherited power is being challenged across the globe.
4. Can Samsung recover?
Yes. If it addresses its core governance issues, embraces true innovation, and rebuilds trust from the bottom up. But that means valuing principles, not just profit.
5. How can a business avoid this fate?
Start by revisiting what the founder stood for. Clarify values. Prepare for leadership transitions. And don’t confuse tradition with insight.
Rebuild the Future With Clarity, Not Just Capital
If this resonates with your business journey, pick up a copy of The Family Business Book. It’s packed with lessons from iconic families like the Mogis and the Lees—available now on Amazon.
👉 You’ll gain insight from case studies like Samsung and Kikkoman
👉 Learn how world cycles impact your timing, not just your tactics
👉 And use the FAQs above to spark essential conversations in your own business
Because the question isn’t just: “Will your business survive?”
It’s: “Will it still be worthy of the family name when it does?”
Stephen Bray helps founders untangle what’s really going on beneath the surface — then make better choices from there. Meet the man behind the mirror here.
© 2025 Stephen Bray. Patterns in life and business — told simply.