Foreign Media Report "Leading Korea's Technology Empire"... Lee Jae-yong's Promotion Widely Covered

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[Asia Economy Reporter Yujin Cho] Major foreign media outlets focused on the fact that Samsung Electronics Chairman Lee Jae-yong was promoted "at the most difficult time." While expecting little change in Samsung Electronics' management direction, they also expressed concerns about the unfavorable global business environment and corporate governance.

On the 27th (local time), Bloomberg News in the U.S. reported in an article titled "Samsung Electronics' Lee Jae-yong Leads the Tech Empire," stating, "Amid supply chain crises and geopolitical tensions shaking the world's largest semiconductor manufacturer, the chairman promotion of South Korea's largest company took place."

It added, "Since Chairman Lee Jae-yong has played a de facto leadership role so far, there will be little change in the short term even after the promotion," but also noted, "The official chairman title will help his efforts to expand influence in the semiconductor and bio sectors."

However, it explained that since the personnel announcement was made on the day of the third-quarter earnings report, which delivered an earnings shock, and demand recovery is unlikely until the second half of next year, the management environment will not be favorable.

The Wall Street Journal (WSJ) cited remarks from Jang Se-jin, a professor of business administration at the National University of Singapore known as a "Samsung expert," who pointed out, "Lee Jae-yong's absolute power could be a problem for the entire company." Professor Jang criticized, "Samsung has an overly centralized structure. Before major decisions, everyone only pays attention to the chairman's words."

WSJ added, "Although the new chairman title has been formalized, it has not resolved the concerns of experts who have long criticized Samsung Electronics' corporate governance."

The Washington Post (WP), in an article titled "Samsung Appoints Former Convict Lee Jae-yong as Chairman," reported, "After being imprisoned for involvement in the Park Geun-hye administration's state affairs manipulation scandal, he was 'restored' as chairman of the family-run company Samsung," and "a few months ago, a special pardon lifted the five-year employment restriction, opening the way for him to officially resume management of the conglomerate."

WP further predicted that the path ahead for Chairman Lee Jae-yong would be difficult due to external adversities. WP stated, "Lee Jae-yong will lead a company worth billions of dollars while navigating the global economic downturn," adding, "He will face challenges and crises in the smartphone and semiconductor business sectors due to the Ukraine war and the consumption downturn caused by inflation."

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