[Chairman Lee Jae-yong Inauguration] Chairman Lee Jae-yong: "Reality is Severe and the Market is Ruthless"

Determination Revealed at Meeting with Executives on the 2nd Anniversary of Late Chairman Lee Geon-hee's Passing
Assumed Chairman Position and Began Duties Without Separate Inauguration Ceremony or Speech

Lee Jae-yong, who assumed the position of chairman on the 27th. Photo by Yonhap News

[Asia Economy Reporter Seunggon Han] Lee Jae-yong (54), Vice Chairman of Samsung Electronics, has been promoted to chairman after 10 years since his promotion to vice chairman in 2012. Samsung Electronics announced on the morning of the 27th that the board of directors held a meeting and approved Lee's promotion to chairman.

The Samsung Electronics board of directors explained that they made this decision because they judged that ▲ strengthening responsible management ▲ enhancing management stability ▲ and swift and bold decision-making were urgently needed. The proposal for Lee Jae-yong's promotion to chairman was initiated by Kim Han-jo, an outside director and chairman of the board, and was approved after board discussions.

Lee began his duties as chairman on the day without holding an inauguration ceremony or delivering an inaugural speech. It was explained that his remarks shared on the company intranet, reflecting on the second anniversary of the late Lee Kun-hee, former chairman of Samsung Electronics, in front of about 300 current and former Samsung executives on the 25th, would serve as his inaugural address.

Lee stated, "Looking back on the intense life of the chairman, I feel a truly heavy sense of responsibility. It is my mission to inherit and develop the achievements and legacy of the previous generation," adding, "Unfortunately, over the past few years, we have not been able to move forward. We have not led new fields, and in existing markets, we are facing fierce challenges from pursuers."

He continued, "Recently, I have looked over the global market and domestic and overseas business sites. It is urgent. The reality before us is severe, and the market is ruthless," but emphasized, "Looking back, there has never been a time without crisis. Depending on how we respond, it can become an opportunity."

Lee graduated from Kyungbock High School and Seoul National University with a degree in Oriental History. He joined Samsung Electronics in 1991. After attending the Graduate School of Business Administration at Keio University in Japan, he completed the Doctoral Program in Business Administration at Harvard Business School in the United States. After finishing his studies, he returned to Samsung Electronics in 2001 as assistant general manager of the Corporate Planning Office and began formal management training, becoming a general manager in 2003.

Below is the full text of Lee’s message shared on the company intranet.

■ Reflections and Determination Shared at the Executive Meeting on October 25, the Second Anniversary of the Late Chairman Lee Kun-hee

It has already been two years since the chairman left us. Many people have honored and mourned him. I am deeply grateful.

Looking back on the chairman’s intense life, I feel a truly heavy responsibility. It is my mission to inherit and develop the achievements and legacy of the previous generation.

Unfortunately, over the past few years, we have not moved forward. We have not led new fields, and in existing markets, we are facing fierce challenges from pursuers.

The only reason we have not fallen behind in the competition is thanks to the executives here and the employees around the world who have devoted themselves wholeheartedly.

Recently, I have looked over the global market and domestic and overseas business sites. It is urgent. The reality before us is severe, and the market is ruthless.

Looking back, there has never been a time without crisis. Depending on how we respond, it can become an opportunity.

In difficult and challenging times, we must prepare ahead and develop our capabilities.

Now is the time to act more boldly and challengingly.

Since its founding, the most valued assets have been talent and technology.

We must recruit and nurture talent capable of changing the world, regardless of gender or nationality.

We must invest in technologies that do not yet exist.

Our survival depends on future technologies. The best technologies are created by excellent talent.

Recently, while visiting business sites, I met many young employees. They are hoping for new changes in the workplace.

We need an organizational culture where talent can freely thrive.

We must create a creative organization full of challenge and passion.

While fiercely pursuing our goals, we must be flexible to changing circumstances, respect our values and order, and recognize diversity to create an open culture.

Samsung must be with society.

We must share and grow together with customers, shareholders, partners, and local communities. Furthermore, we must contribute to solving humanity’s challenges.

A company that turns dreams and imagination into reality, a company that constantly opens new worlds, a company that enriches human society with technologies that do not exist elsewhere?this is the unified vision of you and me, the future Samsung.

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