Samsung heir takes over as chairman year after release from jail in bribery case
The appointment of Jay Y. Lee comes after his release from jail last year from bribery sentence, of which he has since been pardoned, granting him to formally assume the leadership role.
Samsung Electronics on Thursday appointed Jay Y. Lee as its Executive Chairman. The company’s Board of Directors endorsed the recommendation after keeping in mind the prevailing uncertainty in the global business ecosystem and the pressing need for stronger accountability and business stability, , Samsung said in a statement.
The eldest child of Lee Kun-Hee, Jay has served as the technology giant's de facto leader since his father went into coma in 2014 after suffering from a heart attack, before passing away in 2020. Here are five things you must know about the new Samsung chairperson.
1) Jay Y. Lee is the eldest child of Lee Kun-hee, chairman of Samsung. He had been vice chairman of Samsung Electronics, the crown jewel of South Korea’s biggest business conglomerate, since 2012.
2) Since his father’s heart attack-related coma in 2014, Lee, also generally known as Lee Jae-yong, has served as Samsung’s de facto leader. Lee Kun-hee passed away in 2020. With his elevation, now the company will be run by third generation of its founding family. Samsung was founded by his grandfather Lee Byung-chul.
3) The appointment comes after his release from jail last year for bribery sentence, of which he has since been pardoned, granting him to formally assume the leadership role.
According to a BBC report, Lee was found guilty of accepting bribes, embezzling money, and hiding illegal gains, totalling roughly 8.6 billion won ( ₹4,943 lakh).
4) His elevation to the top post comes when the company is going through a rough patch. Samsung, the $280 billion global electronics behemoth, is dealing with growing commercial challenges because of a dramatic decline in demand for tech products worldwide brought on by high inflation, rising interest rates, and a bleak economic outlook.
Samsung disclosed a 31% decline in third-quarter profit and warned that global unrest would probably keep demand down until early 2023.
5) Lee aims to dethrone Taiwan’s TSMC from the top spot in logic chips by 2030 by prioritising expansion in Samsung’s foundry division and developing contract chip production as a significant revenue source.
Although semiconductors continue to be company's main source of income, the economic environment has changed significantly as a result of US efforts to halt China’s advancement in chip technology.
(With inputs from Reuters)
