Lee Jae-yong's Promise to Rebuild 'National Company Samsung'

[Asia Economy Reporter Su-yeon Woo] With Samsung Electronics Vice Chairman Lee Jae-yong released on parole in commemoration of Liberation Day, expectations are rising for his significant social role as a business leader driving the domestic economy. At the same time, attention is focused on Lee's next steps as Samsung aims to become a true 'national company.'

On the 13th, the Blue House stated regarding Lee's parole, "We accept this as a choice for national interest and hope the public will understand," adding, "While the opinions of citizens opposing this are valid, many citizens are also requesting parole, expecting Lee's role in the semiconductor and vaccine sectors amid the crisis." This is interpreted as reflecting the great public expectations placed on Lee amid the intensifying global semiconductor hegemony war and vaccine supply competition.

In political and legal circles, Lee's role is also gaining prominence following his parole. Former leader of the Democratic Party Lee Nak-yeon said, "(Lee) has once again incurred a debt to the people," and added, "I hope he repays this debt by contributing to overcoming the COVID-19 crisis and advancing Korea to a developed country." Justice Minister Park Beom-gye stated, "It seems that public sentiment, one of the parole conditions, was taken into account," and added, "He will need deep reflection on this."

On the day of his parole, Lee bowed his head and said upon leaving the detention center, "I am well aware of the worries, criticisms, concerns, and expectations directed at me," and pledged, "I will work hard."

Lee Jae-yong, Vice Chairman of Samsung Electronics, who was released on parole after 207 days of re-imprisonment, is seen greeting as he leaves Seoul Detention Center in Uiwang, Gyeonggi Province on the 13th. Photo by Kang Jin-hyung, Uiwang aymsdream@

Vice Chairman Lee Jae-yong to Take Role as Private Vaccine Envoy?

First and foremost, the greatest expectation the public places on Lee is his role as a 'private vaccine envoy.' Amid disruptions in domestic COVID-19 vaccine supply, there is hope that Lee will leverage his global network accumulated over time to play a decisive role.

On the 13th (local time), the Korean government delegation visited Moderna's headquarters in Massachusetts, USA, to protest vaccine supply disruptions and request expedited vaccine delivery. Some have suggested converting the Moderna vaccine contract manufacturing volume produced by Samsung Biologics for domestic use as an alternative.

In line with this visit, there is speculation that Lee, as the representative of the contract manufacturing company, could exert negotiating power to convert supplies for domestic use. It is reported that Lee played a crucial role in the negotiation process between Pfizer and the Korean government at the end of last year. To meet Pfizer's top executives, Lee contacted Shantanu Narayen, Adobe's CEO, with whom he has a personal relationship. At that time, Narayen was serving as an outside director of Pfizer. Upon Lee's request, Narayen introduced him to Pfizer's chairman and head of vaccine operations, which led to a video conference between Pfizer's senior officials and Korea's Ministry of Health and Welfare and Disease Control Agency.

A business insider said, "As in the negotiations with Pfizer, Lee can act as an intermediary," and added, "Since the negotiations with Moderna are also related to Samsung Biologics, Lee's influence is expected to be even greater."

Samsung with JY's Return Prioritizes Social Contribution and Job Creation

For Samsung Group, with Lee's return, to become a national company, it must also address national tasks such as job creation and social contribution. In particular, Samsung focuses on supporting youth employment through nurturing future talent and fostering coexistence with local communities by supporting small and medium-sized enterprises (SMEs) and startups.

According to Samsung Electronics' Sustainability Management Report, last year Samsung Electronics' social contribution expenditure recorded 500 billion won for the second consecutive year. Despite the expanded management uncertainties due to COVID-19 since 2019, social contribution spending has increased consecutively. Over nine years from 2012 to last year, the cumulative beneficiaries of Samsung Electronics' social contributions reached a staggering 21.49 million people, and 2,530 SMEs benefited from smart factory support projects over the past five years.

Graduates and officials attending the graduation ceremony of the 4th class of the 'Samsung Youth SW Academy' held last June at the Multicampus Education Center in Gangnam-gu, Seoul, are taking a commemorative photo. Photo by Samsung Electronics

Samsung Group leads youth talent development through quality education programs such as the Junior and Youth Software (SW) Academy, Innovation Campus, and Samsung Dream Class. Recently, it has also been focusing on establishing the ‘Samsung Hope Stepping Stone’ centers to support the independent living of youth preparing for self-reliance. To support youths leaving child care facilities and taking their first steps into society at age 18, Samsung plans to invest 50 billion won by next year to establish 10 centers nationwide.

Additionally, Samsung Group contributes to local communities by strengthening the production competitiveness of small manufacturing companies through smart factory support projects and increasing collaboration opportunities with startups. Recently, expanding the operation of in-house cafeterias to small and medium-sized enterprises and mid-sized companies is also interpreted as part of regional coexistence efforts.

Job creation to address youth employment issues is another task assigned to Samsung Group. Samsung is the only one among the four major domestic conglomerates to maintain open recruitment for university graduates and is attentive to new employment. Last year, Samsung Electronics had about 100,000 domestic employees, and when expanded to Samsung Group's domestic employment, the number of employees reaches 260,000.

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