Samsung Electronics has appointed Lee Jae-yong — who is thought within the West as Jay Y. Lee — as its government chairman, giving the grandson of the corporate’s founder formal control, the South Korean tech giant announced today. The announcement got here on the identical day that Samsung introduced a sequence of disappointing earnings results, as income fell 23 p.c in comparison with the earlier quarter.
According to Samsung’s official announcement justifying the appointment, “the Board cited the current uncertain global business environment and the pressing need for stronger accountability and business stability in approving the recommendation.” Samsung is at present battling a hunch in demand for a number of of its key companies together with reminiscence chips, cell phones, and TVs. It doesn’t count on demand to select again up till the second half of next year.
Lee’s ascension is unlikely to alter a lot for the corporate within the quick time period, Bloomberg notes, given he’s lengthy served as Samsung’s de-facto chief. But formally taking control means Lee can take larger strategic choices to steer the corporate via a turbulent financial interval, together with pushing via acquisitions, mergers, and funneling funding into rising applied sciences.
“Without a doubt, we are at a pivotal moment”
54-year previous Lee succeeds his father, Lee Kun-hee, as head of South Korea’s largest firm following his death in October 2020. Lee Kun-hee had been incapacitated for years after struggling a coronary heart assault in 2014. The youthful Lee had been embroiled in a corruption and bribery scandal since 2017, and been despatched to prison twice. Lee was given a presidential pardon in August this year, paving the best way for him to take formal control of the electronics big. The pardon was reminiscent of the 2 given to Lee’s father, who was convicted of corruption and tax evasion in 1996 and 2008.
“Without a doubt, we are at a pivotal moment,” Lee mentioned in an announcement reported by Bloomberg. “Now is the time to plan our next move. Now is the time to act, to be bold and unwavering in our focus.”