Summary
Lee Jae-yong serves as the chairman of Samsung Group, assuming the de facto leadership role since former Chairman Lee Kun-hee fell ill on May 10, 2014. His official appointment as chairman took place on Oct. 27, 2022.
Under Lee’s chairmanship, Samsung has witnessed significant initiatives, including substantial investments in semiconductors, strategic mergers and acquisitions (M&A) in the display sector, and the establishment of new production lines. Unlike his predecessor, Lee has yet to publicly articulate his own message or management principles.
In response to challenges posed by sluggish global demand and a semiconductor deficit, there are expectations that Samsung Electronics, under Lee’s guidance, will prioritize building internal cohesion. The first quarter of 2023 saw a substantial decline in Samsung’s operating profit, plummeting 95.5% from the same period in 2022 to 642 billion won. Notably, the semiconductor division registered a loss of 4.58 trillion won, marking its weakest performance since the financial crisis.
Despite these challenges, Samsung has proactively prepared for the future under Lee’s leadership. The company has demonstrated swift and decisive decision-making, resulting in aggressive investments. In May of 2022, Samsung unveiled substantial investment plans in semiconductors and bio, positioning itself as a trailblazer in global industrial restructuring. The company committed to investing 450 trillion won, including 360 trillion won domestically, over the five years through 2026.
In alignment with its ‘Semiconductor Vision 2030′, Samsung increased its investment in system semiconductors from 133 trillion won to 171 trillion won. Aiming to establish the world’s largest semiconductor cluster in Yongin by 2042 with a total investment of 300 trillion won, the company also emphasizes research and development in cutting-edge technologies such as AI, robots, and supercomputers to lead the Fourth Industrial Revolution.
Internally and externally, Samsung is reevaluating its image, a process initiated by Lee in December 2020. He articulated his entrepreneurial dream of creating a “company that all people love and trust,” transcending mere size and strength. To achieve this vision, Lee has committed to fostering a culture of compliance, enhancing communication within the industrial ecosystem, and boosting employee pride and public trust.
However, challenges persist. Maintaining the first-mover advantage in memory semiconductors remains crucial, as Samsung aims to establish global leadership in the system semiconductor business, including fabless and foundry operations. In the D-RAM sector, Samsung faces narrowing technology gaps with competitors like Micron and SK Hynix.
In telecommunications, the company is focusing on 6G technology, conducting research on advanced 6G technology. Bio is considered a promising future business, as evident from Lee’s attendance at the completion ceremony of Samsung Biologics’ fourth plant. Additionally, the battery business is poised to lead in the development of all-solid-state batteries.
Timeline
▲ June 23, 1968 = Born the eldest of three sons and three daughters of Lee Kun-hee and Hong Ra-hee in Seoul, Korea,
▲ 1981 = Graduated from Gyeonggi Elementary School.
▲ 1984 = Graduated from Cheongwoon Middle School.
▲ 1987 = Graduated from Gyeongbok High School.
▲ 1991 = Joined Samsung Electronics.
▲ 1992 = Graduated from Seoul National University with a bachelor’s degree in Oriental History.
▲ 1995 = Earned a Master of Business Administration from Keio University Graduate School of Business.
▲ June 1998 = Married Lim Se-ryung, the eldest daughter of Daesang Group Chairman Emeritus Lim Chang-wook.
▲ 2000 = Completed a doctoral program in business administration at Harvard Business School. Led the eSamsung business.
▲ 2001 = Promoted to executive vice president of Samsung Electronics’ business planning team. Sold shares of eSamsung in February.
▲ 2002 = Appointed as a director of the Samsung Lee Kun-hee Chairman’s Scholarship Foundation.
▲ 2003 = Promoted to senior vice president of Samsung Electronics’ business planning team.
▲ 2004 = Appointed as a registered director of S-LCD,
▲ 2007 = Promoted to executive vice president of Samsung Electronics, joining the management team.
▲ February 2009 = Divorced with Lim Se-ryung.
▲ December 2009 = Promoted to executive vice president and chief operating officer of Samsung Electronics.
▲ 2010 = Promoted to president of Samsung Electronics.
▲ 2012 = Promoted to vice chairman of Samsung Electronics.
▲ November 2014 = Sold Samsung Techwin, Samsung Thales, Samsung Petrochemical, and Samsung Total to Hanwha.
▲ May 2015 = Appointed as a chairman of Samsung Foundation.
▲ October 2015 = Sold Samsung Fine Chemicals, Samsung BP Chemicals, and Samsung SDI Chemicals to Lotte.
▲ September 2016 = Sold Samsung Electronics Printer Division to HP.
▲ November 2016 = Acquired Harman.
▲ February 2017 = Indicted on charges of bribery and embezzlement. Prosecutors determined that Lee(then Vice Chairman) was involved in a suspected manipulation of state affairs.
▲ August 2017 = Sentenced to five years in prison by the Seoul Central District Court.
▲ February 2018 = Sentenced to 2 years and 6 months in prison by the Seoul High Court but suspended for 4 years. Later released.
▲ November 2018 = Apologized to victims of occupational diseases at Samsung Electronics semiconductor and display factories. Pledged to prevent recurrence.
▲ May 2020 = Apologized over succession and promised to not hand control to children.
▲ September 2020 = Indicted on charges of violating the Capital Markets Act and the External Audit Act. Prosecutors determined that the merger of Samsung C&T Corporation and Cheil Industries was to ensure a stable succession for Lee (then vice chairman).
▲ January 2021 = Sentenced to 2 years and 6 months in prison by the Seoul High Court. Remanded in custody.
▲ August 2021 = Granted parole. Samsung Card sells all of its 19.9% stake in Renault Samsung Motors.
▲ January 2022 = Sold Samsung SDI’s home network business to Jibang.
▲ May 2022 = Sold Samsung Electronics’ Wi-Fi module business to Hanwha.
▲ Aug. 2022 = Granted an amnesty on National Liberation Day.
▲ October 2022 = Promoted to chairman of Samsung Electronics.
