Samsung under pressure to split company in two


The company is expected to announce changes on Tuesday that will reward investors with more money.

Samsung customers who have had products recalled are not the only ones feeling cheesed off with the company as 2016 draws to a close.

Following pressure from disgruntled shareholders, Samsung is set to announce changes on Tuesday that should boost the amount of profit returned to investors. Some shareholders are even encouraging the company to consider splitting in two, leaving a holding company and an operating company, according to Reuters.

Samsung has been beset with problems over the past few months, including the recall of the Samsung Galaxy Note 7 and 2.8 million washing machines. Political scandal has also caused the company’s offices in Seoul to be raided on two separate occasions. Investors have begun to voice concerns over the way the company is currently being run.

Leading the call for the split is US-based activist hedge fund Elliot Management, which owns a 0.6 percent stake in the Korean tech giant. The fund also wants to see the company add three independent board members, list shares on the US stock market and pay out a special dividend of 30 trillion won ($26 billion) to shareholders.

Samsung has not confirmed publicly whether it is seriously considering the split, although Reuters cites an anonymous source quoted by the Seoul Economic Daily as saying the company is thinking about it. Samsung is set to hold a conference call at 9.30 a.m. local time on Tuesday to discuss the changes in detail. It did not immediately respond to a request to comment.