[Samsung on the Rise Again] 'Seungeobu' JY... Aiming for Global Top with Investment, Employment, and Win-Win Strategies

Formalization of Post-Corona Plan Conceived Before Detention

Lee Jae-yong, Vice Chairman of Samsung Electronics [Image source=Yonhap News]

[Asia Economy Reporter Kim Heung-soon] "When I think about it, I have received the most benefits in our society. I owe the people a debt that I can never repay in my lifetime. I will definitely give back."

Samsung Electronics Vice Chairman Lee Jae-yong made this pledge in his final statement at the retrial sentencing hearing of the state affairs manipulation case at the end of last year. He also acknowledged that although Samsung has grown into a global leading company, it has fallen short in fulfilling its social roles and responsibilities and meeting the expectations and standards of the public, promising change. As this pledge materialized within eight months through investments, employment, and win-win measures, the ‘Seung-eo-bu (勝於父, better than the father)’ that Vice Chairman Lee vowed has once again attracted attention.

Entrepreneur Lee Jae-yong's Dream

According to the business community and Samsung on the 25th, the ‘post-COVID’ era preparation plan announced the day before, which includes investing 240 trillion won in strategic businesses and directly hiring 40,000 people over the next three years by Samsung Electronics and other major affiliates, is evaluated as an official expression of ideas Lee had conceived even before his detention. A Samsung official said, "Although somewhat delayed, the mid- to long-term plan is a refinement and concretization of previously prepared content," adding, "This announcement will mark the beginning of full-scale implementation."

The ‘Samsung that meets the trust of the people and national prestige’ is the New Samsung envisioned by Vice Chairman Lee. In the past, Samsung focused solely on benchmarking advanced companies and concentrating on research and development to compete with rivals, but going forward, it intends to focus on enhancing corporate value while contributing to society.

He emphasized, "It is the corporate duty to win in competition, grow the company, and discover new businesses," adding, "Beyond that, the dream of ‘entrepreneur Lee Jae-yong’ is to create a company that Samsung employees are proud of and that everyone loves and trusts." Only then could he approach the ‘Seung-eo-bu’ surpassing the achievements built by his late father, Chairman Lee Kun-hee.

240 Trillion Won Invested in Strategic Businesses Over 3 Years... Over 70% Invested Domestically
Directly Hiring 40,000, Increasing by 10,000... Reflecting Intent to Restore Public Trust

Samsung’s future plan encompasses the domestic economic revitalization and national interests cited by the government as grounds for Vice Chairman Lee’s parole. A representative example is the decision to spend more than 70% of the 240 trillion won investment?180 trillion won?domestically to secure leadership in strategic businesses such as semiconductors, bio, telecommunications, artificial intelligence (AI), and robotics.

In particular, Samsung aims to become a global leader in system semiconductors, contract development and manufacturing organization (CDMO) for biopharmaceuticals, and next-generation communication technologies. To help resolve employment issues, the company plans to increase new hires by 10,000 compared to the usual scale of about 30,000 over three years. Additionally, to address polarization between large and small businesses, Samsung will strengthen its win-win growth programs, expand support for basic science and fundamental technology research and development (R&D), and enhance industry-academia cooperation.

A business community official commented, "Samsung’s announcement of large-scale investment and employment plans coinciding with Vice Chairman Lee’s parole reflects his intention to restore public trust through management performance," adding, "It is meaningful that the plan includes demands for support of small and medium enterprises and training of core business personnel."

Meanwhile, efforts to transform the group culture to enhance Samsung’s internal and external trustworthiness are already underway. Since the launch of the Samsung Compliance Committee in January last year, various matters related to compliance management have been reviewed, and after pledging to establish a sound labor-management culture, Samsung Electronics, Samsung SDI, and Samsung Display have signed labor-management collective agreements for the first time.

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