Lee Jae-yong's Samsung Electronics Promoted to Chairman After 10 Years... Stock Price Responds, Surpasses 60,000 Won

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] Samsung Electronics Vice Chairman Lee Jae-yong has risen to the chairman position 10 years after his promotion to vice chairman in 2012, and the stock price responded accordingly. On the 27th, as news of his promotion to chairman spread, the stock price surpassed 60,000 won during the trading session. Related article [Lee Jae-yong's Inauguration as Chairman] The Curtain Rises on JY's 'New Samsung'

Samsung Electronics' stock, which started at 59,700 won, was trading at 61,000 won as of 10:42 AM, up 1.18%. On the same day, Samsung Electronics announced that its board of directors held a meeting and approved Lee’s promotion to chairman. Officially bearing the title of 'Samsung Chairman,' the era of 'Lee Jae-yong's Samsung' has officially begun. The Samsung Electronics board explained that amid worsening global external conditions, they judged that ▲ strengthening responsible management ▲ enhancing management stability ▲ and swift and bold decision-making were urgently needed, leading to this resolution.

Accordingly, Chairman Lee officially assumed the chairman title about four years after being designated as the Samsung Group's de facto head (owner) by the Fair Trade Commission in 2018. It is two years after the passing of his father, the late Chairman Lee Kun-hee, in October 2020, and 31 years since he joined Samsung Electronics in 1991.

As Samsung Electronics announced its third-quarter earnings, which recorded an 'earnings shock,' opinions from inside and outside the business community have been pouring in that, amid concerns over a global economic recession, strong leadership and the chairman's inauguration are necessary to maintain a super-gap competitiveness and proactively respond to crises.

Meanwhile, despite the earnings shock, the stock price has maintained a firm tone. This is interpreted as the market shock not being significant due to the poor performance having been forecast on the 7th.

In a conference call following the announcement of the third-quarter 2022 earnings, Samsung Electronics stated, "With the expansion of the foundry advanced process ratio in the fourth quarter, maximum production optimization and steady demand across all applications are expected, leading to double-digit growth compared to the previous quarter." They added, "We expect to achieve the highest sales and profits based on 2022."

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