Samsung's Scion Lee's Appointment As Chair Could Not Have Been More Better Timed

The Samsung Electronics Co., Ltd. SSNLF board approved the appointment of Jay Y. Lee as Executive Chair of the company.

Independent director and board Chair Han-Jo Kim recommended 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.

Also Read: Samsung Aims To Salvage Smart TV Growth Via Third-Party Collaborations

Lee was likely to succeed to the throne after his father died in 2020, Bloomberg reported.

However, graft investigations and two stints in jail delayed the appointment.

The decision coincided with Samsung's disappointing third-quarter earnings and warning against a recovery in technology demand till the second half of 2023.

Lee was already a de-facto leader. He played matchmaker between companies and governments, helping ramp up mask and vaccine production and a significant expansion of chip investments during the pandemic and semiconductor chip crisis. 

The market hoped Lee's return would drive growth at Samsung through significant mergers and acquisitions and accelerate strategic decisions on where Samsung should invest in future technology, boosting shareholder value. 

Lee owns 1.63% of Samsung Electronics and 18.13% of the group's de-facto holding company Samsung C&T Corp.

Lee was embroiled in bribery and corruption investigations dating back to 2017. In August, he won a presidential pardon that formally allowed him to take the helm at the company.

Samsung aims to expand its advanced chips production capacity by more than 3X by 2027 to meet strong demand despite global economic headwinds.

Samsung targets the commercialization of advanced 2-nm technology chips by 2025 and 1.4-nm chips by 2027, set for high-performance computing and artificial intelligence applications.

Samsung bagged a one-year immunity from the new U.S. embargo on China

Photo by Pierre Lecourt via Flickr