[Chairman Lee Jae-yong's Inauguration] 'Quiet Inauguration,' Why?..."Just Continuing What Has Been Done for 8 Years"

Since the Passing of Late Chairman Lee Geon-hee in 2014, Technology and On-site Management
Securing Samsung's Future Engines like Semiconductors and Bio is Crucial: "We Run Hard"

Vice Chairman Lee Jae-yong of Samsung Electronics (second from the left) inspecting semiconductor equipment with Peter Wennink, CEO of ASML, and Martin van den Brink, CTO of ASML, at ASML headquarters in Eindhoven, Netherlands, on June 14 (local time). (Photo by Yonhap News)

[Asia Economy Reporter Moon Chaeseok] On the 27th, Lee Jae-yong, who assumed the position of chairman of Samsung Electronics, has been leading Samsung by selecting and nurturing 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. Now, he has officially taken the title of 'Chairman.'

His quiet inauguration as chairman, promising to "work hard" for nurturing future growth engines such as semiconductors and bio industries and for the development of the national economy, was conducted quietly. Since 2014, Lee has effectively served as the de facto 'head' of the company. 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 plan for "Samsung's future preparation for dynamic innovative growth." These are essential management activities to secure Samsung Group's 'future growth engines' for 10 to 20 years ahead, crucial for the group's future prosperity and survival, all led by Lee.

A business circle insider said, "(Lee) has been active as the head of Samsung for a long time, communicating with employees across affiliates and reviewing future projects for each company," adding, "Issuing an 'inauguration message' or similar is unnatural in Samsung's current situation since this is not a new undertaking."

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

Some have reacted that it is "unusual" that the leader of South Korea's representative company changed his title from vice chairman to 'chairman' without any message. In response, the business community analyzed, "Lee has effectively led Samsung since the late Chairman Lee collapsed in 2014," and "According to the dictionary, 'inauguration' means 'to take office for the first time to perform a new duty.' Since Lee is already representing Samsung in management activities, issuing a separate inauguration message or holding an event might be more awkward." 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 Lee as the de facto head (same person). In May 2018, the Fair Trade Commission designated Lee as the same person of Samsung Group. At various government events, although Lee held the title of 'vice chairman,' he represented Samsung and delivered messages. The process in which the board chairman, an outside director, proposed Lee's promotion to chairman and the board approved it is also seen as a judgment reflecting this 'objective situation' in the title, which is natural and more helpful for internal and external activities.

Additionally, some interpret the "quiet inauguration" as reflecting the escalating crises such as inflation and Lee's personal disposition, which dislikes formalities.

Looking at other groups, Hyundai Motor Chairman Chung Eui-sun delivered a video message via internal broadcasting when he assumed the chairmanship in October 2020. LG Chairman Koo Kwang-mo was appointed as a registered director at the extraordinary general meeting in June 2018 and was then granted the chairman title by the board, delivering his inauguration speech as a 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.

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