Telecommunication giant, Samsung has announced the appointment of Lee Jae Young as the new chairman of the multinational company. Lee Jae Young will be replacing his father Lee Kun Hee who died in 2020.
Investors King learnt that Lee who was once convicted of bribing former South Korean president Park Geun-Hye received a presidential pardon in August after serving 18 months in jail.
The presidential pardon restored Lee’s right to work at Samsung and officially allowed him to participate in the company’s management and engage in the decision-making process of the world’s largest phone maker.
Before his recent appointment, Lee has been the Vice Chairman of Samsung Electronics since 2012. This makes him a great fit for the chairmanship position after the death of his father.
According to the Board of the Company, the current uncertainty in the Global business environment and the urgent need for stronger accountability and business vitality are some of the reasons which necessitated Lee’s appointment.
While commenting on the way forward, Lee stated in an internal forum that “Our survival depends on future technologies”. He also added a terse statement “We can turn this crisis into opportunity,” signifying the current market challenges.
Virtually all big tech companies have reported slow demand for their products. Apple Incorporated recently announced it will slow down the production of iPhone 14 due to weak demand.
Apart from increasing sales, the new chairman will be faced with the task of navigating Samsung through some prevailing challenges which include a trade war between the United States and China.
The United States Department of Commerce had announced new rules aimed at blocking China from gaining access to advanced chip items such as semiconductors. The Department of Commerce claimed China is using those items to produce advanced military systems which include weapons of mass destruction.
Meanwhile, Samsung’s operating surplus for Q3, 2022 is down by 31.39 percent year-over-year. Memory chip, which is one of the company’s major businesses, is down due to slow demand from consumer companies.
A closer perusal of the company’s filing also shows that operating surplus for three months of Q3 (July to September 2022) is down by more than 50 percent when compared with the same period in the previous year.