Lee Jae-yong Tackles Current Issues First... Challenging Journey Ahead Amid Expectations for Early Business Activities

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

[Asia Economy Reporter Kim Heung-soon] As Samsung Electronics Vice Chairman Lee Jae-yong immediately began addressing pressing issues following his parole, industry insiders and observers are paying close attention to whether Samsung's management clock, which had been at a standstill, will return to normal.

According to the industry on the 15th, Vice Chairman Lee, who was released from Seoul Detention Center on the 13th through parole, is known to have taken rest over the weekend while planning his future schedule. On the day of his release, he went straight to Samsung Electronics' Seocho headquarters to meet with key executives from major business divisions and discuss current issues.

This first move after parole has led the business community to expect that Vice Chairman Lee will return to the forefront of management in a short time, focusing on addressing pressing matters such as large-scale investments and achieving management results. Immediately after his release, Lee said, "I have heard well the worries, criticisms, concerns, and great expectations about me," adding, "I will work hard."

Possibility of Finalizing Large-Scale Investments in Semiconductors and Batteries

There are immediate challenges to be resolved in the semiconductor business, which is escalating into a global hegemony competition. Samsung Electronics announced plans in May during the Korea-US summit to expand its foundry (semiconductor contract manufacturing) plant in the US with an investment of about 20 trillion won, but has yet to select a candidate site.

Currently, Taiwan's TSMC, the world's number one foundry, is announcing successive investment plans to widen the gap with second-place Samsung Electronics, while comprehensive semiconductor company Intel has declared its re-entry into the foundry business based on large-scale investments and technological prowess, intensifying competitive pressure.

There is also a possibility that investment in the third plant (P3) being built at the Pyeongtaek campus will be concretized. Samsung Electronics has announced it will invest 171 trillion won in system semiconductors by 2030, with domestic investments centered around Pyeongtaek. Samsung SDI's entry into the US battery plant market is also expected to materialize soon.

Furthermore, amid ongoing shortages in COVID-19 vaccine supply, there is anticipation that Vice Chairman Lee will play a private envoy role to secure vaccines by leveraging his global network. Earlier, the Blue House stated regarding Lee's parole, "In the midst of a severe crisis, especially in the semiconductor and vaccine sectors, many citizens expect his role and have requested parole," adding, "We accept this as a choice for national interest and hope the public will understand."

Samsung Electronics Building, Seocho-gu, Seoul / Photo by Dongju Yoon doso7@

Accelerating Restoration of Public Trust
Employment Restrictions and Trial Schedules Pose Constraints

Along with Vice Chairman Lee's parole, major affiliates including Samsung Electronics and Samsung SDI are attempting changes by signing labor-management collective agreements. This signifies fulfilling Lee's public promise made last May to establish a healthy labor-management culture at Samsung. At that time, Lee emphasized, "I will ensure that the phrase 'no labor union management' is no longer associated with Samsung," and "We will strictly comply with labor relations laws and firmly guarantee the three labor rights to promote harmony and coexistence between labor and management."

Additionally, on the 11th, a public bid was announced to select catering companies for six employee cafeterias within Samsung Electronics facilities in Suwon, Gwangju, and Gumi. Following the competitive bidding and outsourcing of two cafeterias in the Suwon and Giheung plants earlier this year, this move aims to expand external openings with the goal of coexistence with small and medium-sized enterprises.

Considering the considerable opposition to the parole, this can be seen as an intention to meet social expectations through management performance, recover public trust, and counter criticism.

However, employment restrictions applied to Vice Chairman Lee, parole-related constraints, and pending trial schedules remain variables. The Seoul Central District Court Criminal Division 25-2 will hold a trial on the 19th for Lee, who is charged with violations of the Capital Markets Act and other allegations. Since June, the court has been conducting weekly trials barring special circumstances, setting every Thursday as a trial date until September 16.

According to legal circles, Lee is under probation and must report to the Seoul Western Probation Office, which has jurisdiction over his residence, within ten days of his parole date to register his residence, occupation, and life plans, and to receive scheduled education.

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