Lee Jae-yong's Return to Management... Accelerating New Samsung's Progress

Samsung Electronics Vice Chairman Lee Jae-yong is departing for Vietnam on the 19th through the Seoul Gimpo Business Aviation Center (SGBAC). Photo by Moon Honam munonam@

[Asia Economy Reporter Dongwoo Lee] In the 'post-Lee Kun-hee' era, Samsung Electronics Vice Chairman Lee Jae-yong's 'New Samsung' initiatives are expected to accelerate.

According to Samsung Electronics on the 1st, the company will hold its 51st anniversary ceremony on the 2nd. Considering the spread of the novel coronavirus infection (COVID-19), the number of attendees will be reduced to fewer than 100 for the ceremony this year. It is widely expected that Vice Chairman Lee will not deliver a separate message to employees during the ceremony.

Samsung, which has officially transitioned to the 'Lee Jae-yong system,' is expected to focus on addressing pressing issues. First, Vice Chairman Lee must prepare for the retrial of the state affairs manipulation case and the trial concerning allegations of illegal succession of management rights.

He is also expected to resume overseas business trips. Likely destinations include Japan and the United States. Earlier, on his return from a recent business trip to Vietnam, Vice Chairman Lee told reporters, "I have to go at least once to meet Japanese customers."

The industry expects Vice Chairman Lee to maintain an investment expansion policy to respond to the global semiconductor market amid the US-China trade dispute. This is because continuous investment in foundry and system semiconductors is necessary to achieve the 'Vision 2030' goal of becoming number one not only in memory but also in the non-memory sector by 2030.

Future technology development is also expected to be a focus. Vice Chairman Lee is directly exploring and concentrating on future businesses such as artificial intelligence (AI), next-generation mobile communications including 5G and 6G, and automotive electronics.

The issue of Samsung's corporate governance restructuring remains a challenge. Considering Samsung's governance structure, which flows from Samsung C&T to Samsung Life Insurance and then to Samsung Electronics, the 'Insurance Business Act Amendment' is seen as a major variable by industry insiders. If the amendment passes, Samsung Life Insurance would have to sell its Samsung Electronics shares worth about 20 trillion won on the market.

After the year-end personnel reshuffle this year, a global strategy meeting will be held to review the business performance of the year and assess management strategies by division.

This content was produced with the assistance of AI translation services.