New Samsung chairman faces myriad of challenges
Samsung Electronics Vice Chairman Lee Jae-yong was appointed as chairman of the world's No. 1 maker of semiconductors and cellphones, Thursday. Lee's ascension came 10 years after he took the vice chairmanship and two years after his father Lee Kun-hee passed away. Lee has been essentially leading the nation's largest company since 2014 when his father collapsed due to a heart attack and lapsed into a coma from which he would never awaken.
Lee has suffered a myriad of difficulties in managing the company, as he has been tied to corruption and power abuse cases committed under the former President Park Geun-hye administration. Lee received a special pardon in time with National Liberation Day on Aug. 15. His taking of the chairmanship holds significance as he is tasked to steer the nation's largest conglomerate, Samsung Group, despite all these issues.
Lee is bracing for diverse and daunting challenges in managing the company. He did not hold a ceremony to mark his appointment and did not give a speech, using instead the one used on the occasion of the second anniversary of his father's leadership. This shows how seriously Lee views the current situation facing the company.
For starters, on the same day that the board of directors approved Lee as the chairman, Samsung Electronics announced its operating profit declined 31 percent in the third quarter of this year from a year earlier. Lee also appeared in court Thursday to stand trial with regard to a merger involving Samsung Corp. and an allegedly fraudulent financial statement involving Samsung Biologics in bids toward his succession of the group.
Lee admitted that the firm "has failed to take the lead in a new field." He vowed to make more audacious investments in new businesses and technologies and recruit skilled people regardless of nationality or gender difference. Lee also pledged to foment creative business practices replete with a challenging spirit and passion while promoting an open culture that respects diversity. This can be seen as a direct reaction to the "closed" mindset culture rather than focusing on outside exchanges.
Approving Lee's chairmanship, the board of directors cited the worsening global business environment and the need to strengthen accountability in management. As Lee put it, he may feel a heavy burden on his shoulders. Yet, he needs to carry out his duty to keep the company afloat and help it continue to flourish despite tectonic challenges while abiding by his pledges to fulfill the group's responsibilities to society.
Amid intensifying hegemony competition between the United States and China, Samsung has been suffering problems in the Chinese market, which accounts for 60 percent of its entire chip exports. The national economy will face a grave setback should Samsung continue to struggle in major markets. We hope Lee will double down on efforts to tide over the multiple challenges for the benefit of Samsung and the Korean economy, making the most of his top position.
Samsung Electronics Vice Chairman Lee Jae-yong was appointed as chairman of the world's No. 1 maker of semiconductors and cellphones, Thursday. Lee's ascension came 10 years after he took the vice chairmanship and two years after his father Lee Kun-hee passed away. Lee has been essentially leading the nation's largest company since 2014 when his father collapsed due to a heart attack and lapsed into a coma from which he would never awaken.
Lee has suffered a myriad of difficulties in managing the company, as he has been tied to corruption and power abuse cases committed under the former President Park Geun-hye administration. Lee received a special pardon in time with National Liberation Day on Aug. 15. His taking of the chairmanship holds significance as he is tasked to steer the nation's largest conglomerate, Samsung Group, despite all these issues.
Lee is bracing for diverse and daunting challenges in managing the company. He did not hold a ceremony to mark his appointment and did not give a speech, using instead the one used on the occasion of the second anniversary of his father's leadership. This shows how seriously Lee views the current situation facing the company.
For starters, on the same day that the board of directors approved Lee as the chairman, Samsung Electronics announced its operating profit declined 31 percent in the third quarter of this year from a year earlier. Lee also appeared in court Thursday to stand trial with regard to a merger involving Samsung Corp. and an allegedly fraudulent financial statement involving Samsung Biologics in bids toward his succession of the group.
Lee admitted that the firm "has failed to take the lead in a new field." He vowed to make more audacious investments in new businesses and technologies and recruit skilled people regardless of nationality or gender difference. Lee also pledged to foment creative business practices replete with a challenging spirit and passion while promoting an open culture that respects diversity. This can be seen as a direct reaction to the "closed" mindset culture rather than focusing on outside exchanges.
Approving Lee's chairmanship, the board of directors cited the worsening global business environment and the need to strengthen accountability in management. As Lee put it, he may feel a heavy burden on his shoulders. Yet, he needs to carry out his duty to keep the company afloat and help it continue to flourish despite tectonic challenges while abiding by his pledges to fulfill the group's responsibilities to society.
Amid intensifying hegemony competition between the United States and China, Samsung has been suffering problems in the Chinese market, which accounts for 60 percent of its entire chip exports. The national economy will face a grave setback should Samsung continue to struggle in major markets. We hope Lee will double down on efforts to tide over the multiple challenges for the benefit of Samsung and the Korean economy, making the most of his top position.
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