The South Korean technology giant Samsung Electronics made the announcement Thursday, Oct. 27, that it has elected Lee Jae-Yong to the position of executive chairman.

Also known by his English name Jay Y. Lee, he is the grandson of the company's founder and now has official leadership over the business.

The Unsatisfactory Earnings Report From Samsung

The news was made on the same day that Samsung disclosed a number of unsatisfactory financial figures, including a decline in profits of 23% when compared to the previous quarter.

The market for some of Samsung's most important products, such as memory chips, mobile phones, and televisions, has recently seen a significant downturn. The company anticipates that demand will not begin to increase again until the second half of next year.

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The Decision to Appoint Jay Y. Lee

According to The Verge, Samsung released an official announcement explaining the decision. It stated that the Board of Directors emphasized the current uncertain global economic environment and the compelling need for increased accountability and company stability to support the recommendation.

Bloomberg noted that given Lee's extended tenure as Samsung's de-facto leader, the company's short-term trajectory is not anticipated to be much altered due to his promotion to the position of chairman.

However, now that Lee has formally taken control of the empire, he can make more significant strategic decisions to guide the business through a period of turbulent economic conditions. These decisions may include pushing through acquisitions and mergers and channeling investment into emerging technologies.

As Lee put it in a statement released after his appointment, "Without a doubt, we are at a pivotal moment. Now is the time to plan our next move. Now is the time to act, to be bold and unwavering in our focus," Bloomberg reported.

Background

Lee received his bachelor's degree in East Asian History from Seoul National University and his master's degree in the same field from Keio University in Japan. He attended Harvard Business School for his PhD studies but did not graduate.

After his father, Lee Kun-Hee, died in October 2020, his son Jay Y. Lee was expected to take over as CEO of the biggest tech firm in South Korea.

After suffering a heart attack in 2014, Lee Kun-Hee had been unable to function normally for many years.

Since 2017, Jay Y. Lee has been involved in a bribery and corruption scandal, and he was sentenced to jail on two separate occasions. In August of this year, a presidential pardon was granted to Lee, which cleared the path for him to assume official management of the multinational electronics corporation.

This pardon was reminiscent of the two that were granted to Lee's father, who was convicted of corruption and tax evasion in 1996 and 2008. These convictions occurred in 2008 and 1996, respectively.

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Written by Trisha Kae Andrada