[Samsung on the Rise Again] "Investment, Employment, and Win-Win"... Lee Jae-yong Responds to 'Parole for National Interest'

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] Samsung's decision to make new investments totaling 240 trillion won over the next three years and to directly hire 40,000 employees in preparation for the post-COVID-19 future is interpreted as a response to the parole decision of Samsung Electronics Vice Chairman Lee Jae-yong, which was made under the pretext of economic revitalization.

According to the business community and Samsung on the 24th, after Vice Chairman Lee was released on parole from Seoul Detention Center on the 13th, he has continuously met with executives of Samsung Electronics and other major Samsung affiliates to review current issues and outline investment and employment plans for future preparation.

Immediately after his release, contrary to expectations about his destinations, he rushed to the Samsung Electronics Seocho office building to meet with executives of key business divisions. Including the Liberation Day holiday period, it is known that he met consecutively with executives of major affiliates during the ten days following his release from detention. Through these meetings, he received reports on the status of Samsung’s key operations missed during his absence and held discussions with each business division of Samsung Electronics, including the memory and foundry (semiconductor contract manufacturing) divisions.

Through this process, detailed plans for new investments and employment appear to have been finalized. This can be seen as a signal fulfilling Vice Chairman Lee’s public promise immediately after his release, when he said, "I am well aware of the worries, criticisms, concerns, and high expectations directed at me. I will work hard." The Blue House also issued messages urging focus on economic activities with expressions such as 'semiconductors and vaccines,' 'grave crisis,' and 'national interest' in relation to Lee’s parole.

In line with this, Samsung’s announced plan to prepare for the 'post-COVID-19' era includes investment plans aimed at securing leadership in strategic businesses such as semiconductors, bio, telecommunications, artificial intelligence (AI), and robotics. Notably, out of the 240 trillion won to be invested over three years until 2023, 180 trillion won will be spent domestically.

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

In particular, Samsung did not hide its sense of crisis surrounding Samsung Electronics in the semiconductor sector, which is escalating into a global hegemony competition. Samsung stated, "We have decided to expand investments to maintain and strengthen absolute leadership in the global semiconductor industry, considering the 'emergency situation' both domestically and internationally," emphasizing, "Semiconductors are a 'safety net' for the Korean economy and a core foundational industry of the Fourth Industrial Revolution. Once competitiveness is lost, recovery is nearly impossible, so aggressive investment is essentially a 'survival strategy.'"

Samsung also pledged to directly hire 40,000 people over the next three years to address employment issues, which is 10,000 more than the usual hiring scale of 30,000 over three years. Expectations were added that the large-scale investment will generate an employment inducement effect of 560,000 jobs. Additionally, to resolve polarization between large corporations and small businesses, Samsung proposed strengthening co-prosperity programs, expanding research and development support, and increasing safety and productivity incentives for excellent partner companies.

The business community views Samsung’s future preparation plan, encompassing investment, employment, and mutual growth, as closely related to Vice Chairman Lee’s intention to restore public trust through management performance. Samsung emphasized, "The plan prepared this time has been reported to the boards of directors of affiliates," and added, "We plan to execute it continuously with sincerity."

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