[Jae-yong Lee Chairman Inauguration] "I Will Work Hard" JY... New Samsung Keywords: 'Technology, Talent, Organization'

A 'Quiet Inauguration' Without Ceremony... "Continuing What Was Done"
Determined to Secure Growth Momentum in Semiconductors and Bio
Steadily Preparing 'Technology Management' to Play the Role of 'Captain'

[Image source=Yonhap News]

[Asia Economy Reporters Moon Chaeseok and Han Yeju] On the 27th, Lee Jae-yong, who assumed the position of Chairman of Samsung Electronics, has been leading Samsung by spearheading the selection and nurturing of future growth businesses, innovating organizational culture, advancing labor-management relations, and creating youth jobs even after the late Chairman Lee Kun-hee collapsed in 2014. His quiet inauguration as chairman, who pledged to "work hard" for fostering future growth engines such as semiconductors and bio industries and for national economic development, was conducted quietly. Going forward, he will take the helm of management to secure new growth momentum critical to the group's future.

Leading Samsung since 2014: "Continuing what I have been doing"

[Image source=Yonhap News]

Chairman Lee has effectively served as the de facto 'head' since 2014. Specifically, he led initiatives such as ▲the 2018 announcement of "180 trillion won investment and 40,000 hires" ▲the 2019 announcement of the "System Semiconductor Vision 2030" ▲and the 2022 "Samsung's Future Preparation for Dynamic Innovation Growth." These are preparatory efforts to secure Samsung Group's 'future food sources' 10 to 20 years ahead, essential management activities for the group's future prosperity and survival, all led by Chairman Lee. This explains why he carried out scheduled activities without a separate inauguration ceremony on that day.

A business community insider said, "(Chairman Lee Jae-yong) has been actively communicating with employees across affiliates and reviewing future business plans for each company, acting as Samsung's head for a long time," adding, "Since he is not starting something entirely new, issuing an 'inauguration message' would be unnatural given Samsung's current situation."

This approach differs from that of the late Chairman Lee Kun-hee. The late chairman held an inauguration ceremony on December 1, 1987, at the Hoam Art Hall in Seoul and declared a "second founding." Regarding this, the business community noted, "While it is common among recent global IT companies to convey inauguration messages via email to employees without a separate event, Chairman Lee did not issue any separate inauguration message."

Some reacted that it was "unusual" that the title changed from Vice Chairman to Chairman of South Korea's leading company without any message. In response, the business community analyzed, "Chairman Lee has effectively led Samsung since his father collapsed in 2014," and "Looking up the word 'inauguration' in the dictionary, it means 'to take office for the first time to perform a new duty,' so it might be more awkward for (Vice Chairman Lee), who is already representing Samsung in management activities, to hold a separate inauguration message or event." The Standard Korean Language Dictionary defines 'inauguration' as "going to the position for the first time to perform a new duty."

The government also recognizes Chairman Lee as the de facto head (same person). In May 2018, the Fair Trade Commission designated Lee as the same person for Samsung Group. Although he held the title of 'Vice Chairman' at various government events, he represented Samsung and delivered messages. The process where the outside director and chairman of the board proposed Lee's promotion and the board approved it is also interpreted as reflecting this 'objective situation' in the title, which is considered more natural and helpful for internal and external activities.

Additionally, some in the business community interpret the "quiet inauguration" as reflecting the escalating crises such as inflation and Chairman Lee's personal dislike of formalities.

Looking at other groups, Hyundai Motor Chairman Chung Euisun delivered a video message via in-house broadcasting when he assumed the chairmanship in October 2020. LG Chairman Koo Kwang-mo was appointed as a registered director at an extraordinary general meeting in June 2018 and was then granted the chairman title by the board, delivering an inaugural speech as his board greeting. SK Chairman Chey Tae-won held a press conference after being nominated chairman by the SK Supex Council. Lotte Group announced Shin Dong-bin's inauguration as chairman during the regular executive personnel announcement in February 2011.

JY's Vision for 'New Samsung' Future Growth Engines

[Image source=Yonhap News]

Chairman Lee declared a transformation into a "company opening a new future" leading the global industrial restructuring and has been steadily drawing a blueprint to seize the era of the Fourth Industrial Revolution. The core keywords are "technology, talent, and organization." On the second anniversary of the late Chairman Lee Kun-hee on the 25th, he met with executives and said, "Since the founding, the most valued assets have been talent and technology," emphasizing, "We must recruit and nurture talent capable of changing the world regardless of gender or nationality." He added, "We must invest in technologies that do not yet exist," stressing, "Our survival depends on future technologies."

Earlier, Samsung announced plans to invest 450 trillion won (360 trillion won domestically) over the next five years focusing on ▲semiconductors ▲next-generation communications ▲bio ▲and new growth IT research and development (R&D).

Chairman Lee announced the "Semiconductor Vision 2030" in 2019 to transplant the "memory success DNA" into the fabless system semiconductor and foundry sectors to achieve a true "semiconductor super-gap." If his semiconductor vision is realized, Samsung is expected to leap beyond the "memory super-gap" to become the first company to lead all three major semiconductor sectors, potentially creating at least one new company the size of Samsung Electronics in South Korea.

Following Chairman Lee's directive to "look further ahead and proactively prepare for the future," Samsung is also proactively preparing for next-generation communications beyond 5G. It has taken the lead in preparing for 6G, which is expected to be commercialized in earnest in 10 years. Chairman Lee stated, "Communication infrastructure is as important as vaccines, and proactive investment in communication like vaccines allows useful application when needed," adding, "We have had a team internally preparing for 6G for two years."

Samsung aims to nurture bio as a future growth engine comparable to semiconductors, aspiring to create a "second semiconductor myth." This is regarded as a new challenge goal reflecting Chairman Lee Jae-yong's determination. Samsung plans to continue fostering the bio business through aggressive investment and expanding its biosimilar pipeline. Samsung also continuously supports the domestic bio industry ecosystem by ▲training bio specialists ▲localizing raw materials and components ▲and providing technical support to small and medium biotech companies.

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