Chairman Lee Jae-yong Spent Over 50 Days Abroad in the First Year After Appointment

[Samsung New Management 30 Years]
③ JY Who Pioneered New Markets and Improved Organizational Culture

Samsung Electronics, transformed under the leadership of Lee Jae-yong, is striving to pioneer new markets. Leveraging Lee Jae-yong, Chairman of Samsung Electronics’ strong global network, the company is seeking new business momentum in numerous regions including the Middle East. To strengthen corporate fundamentals and enhance its innovation DNA, Samsung is focusing on improving organizational culture. It is establishing a horizontal personnel system centered on job roles to foster a future-oriented culture.

Since his inauguration on October 27 last year, Chairman Lee has maintained a hectic schedule. Over the course of a year, he visited various locations including the United States, Southeast Asia, the Middle East, and Europe for more than 50 days, touring local business sites and discussing business with political and economic figures overseas. Notably, during the first 100 days after his inauguration, he spent more than a quarter of that time abroad. This was an effort to pioneer new markets by utilizing his strength in global networks. In the business community, it is evaluated that Chairman Lee’s actions aim to maximize the synergy of global businesses operated by Samsung’s affiliates and secure future opportunities.

Samsung Electronics Chairman Lee Jae-yong is inspecting the underground tunnel construction site of the 'NEOM' new city project, in which Samsung C&T is participating, in Tabuk Province, northwestern Saudi Arabia, on the 1st (local time). / Photo by Samsung Electronics

During the Chuseok holiday starting on the 28th of last month, Chairman Lee visited Saudi Arabia, Egypt, and Israel. He continued his on-site management activities by visiting overseas business sites during the holiday as well. As demand for non-oil industries has increased in the Middle East, traditionally known for oil money, new business opportunities in eco-friendly energy and nuclear power have expanded. In particular, attempts to modernize industrial infrastructure locally and foster manufacturing have increased, thereby expanding related business prospects.

Chairman Lee visited the northwestern region of Saudi Arabia to inspect the NEOM mountain tunnel construction site, a green smart city project involving Samsung C&T Corporation. He personally oversaw the NEOM City project, which he had discussed with Saudi Crown Prince Mohammed bin Salman during his visit to Korea in November last year. He also visited Samsung Electronics’ factory in central Egypt to review production sites and discuss Middle East business strategies. He emphasized the importance of Middle East business to local employees, saying, “The Middle East is a treasure trove full of future business opportunities and chances to demonstrate innovative technologies.”

Chairman Lee’s focused interest in the Middle East began in 2019. At that year’s Samsung executive meeting, he stated, “We must quickly respond by preparing plans to strengthen cooperation in future industrial sectors where Samsung can excel in Middle Eastern countries.” The first business trip he made after his inauguration in December last year was also to the United Arab Emirates (UAE). In January, he participated in the UAE economic delegation accompanying President Yoon Suk-yeol, achieving results such as signing business contracts for Samsung C&T Corporation.

While these activities expand Samsung Electronics’ external business scale, strengthening internal fundamentals involves innovating organizational culture. Chairman Lee is committed to creating a future-oriented organizational culture by inheriting and developing the talent management philosophy of the late Chairman Lee Kun-hee. A key example is the shift from seniority-based personnel systems to job role-centered systems to emphasize work and expertise.

Communication with employees is also increasing. He frequently visits domestic business sites and overseas locations of electronics, bio, and financial affiliates to hold meetings with employees and gather diverse opinions. Last year, he held a meeting with working mothers balancing work and childcare within the company, urging institutional innovation. At the end of last year’s executive personnel reshuffle, Samsung appointed its first female professional CEO.

Another notable change is Samsung’s active recruitment of external talent. In a nationwide press conference in May 2020, Chairman Lee expressed his intention to recruit outstanding talent regardless of gender, academic background, or even nationality. In fact, Samsung Electronics appointed Seunghyun Jun (Sebastian Seung), a professor at Princeton University in the United States, as head (president) of Samsung Research that same year.

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