Lee Kun-hee sold convertible bonds, issued by Cheil Industries (formerly Samsung Everland) and Samsung SDS, to his son Jae-yong at far below fair market prices. The junior Lee made billions of dollars of profits after the group's de-facto holding company and the IT services unit floated shares last year.

Under the son's leadership, Samsung Electronics, the group's crown jewel, saw its market share eroded by archrival Apple and rising Chinese competitors, including Xiaomi, Huawei and Lenovo. Its global smartphone market share tumbled to 24.7 percent in the third quarter of 2014 from 35 percent a year ago, according to researcher Strategy Analytics.

The junior Lee, who received a master's degree at Japan's Keio University and studied at Harvard Business School for about five years, is known to be sociable and approachable, a personality that can help change the company's rigid corporate culture and expand cooperation with global players.

When he was promoted to vice chairman of Samsung Electronics in 2012, the company credited him with enhancing partnerships with client companies and even rivals like Apple.

He plans to introduce a flexible work-hour system from mid- April, which will allow employees to adjust work hours at their convenience, to help form a corporate atmosphere for creative mindset. But, it is doubtful whether his non-charismatic management having carrots without sticks would succeed.