Lee Jae-yong Heads to Seocho Office After Parole... Prioritizes Current Issues Over Rest (Comprehensive Report 2)

Lee Jae-yong, Vice Chairman of Samsung Electronics, who was released on parole after 207 days of re-imprisonment, is leaving Seoul Detention Center in Uiwang, Gyeonggi Province on the 13th. Photo by Kang Jin-hyung, Uiwang aymsdream@

[Asia Economy Reporter Kim Heung-soon] It is reported that Samsung Electronics Vice Chairman Lee Jae-yong visited the Samsung Electronics Seocho Building in Gangnam-gu, Seoul immediately after being released on parole on the 13th. This has strengthened expectations that he can promptly resume management activities, starting with meeting executives of major business divisions to assess the current status of operations.

On that day, the vehicle carrying Vice Chairman Lee was spotted by reporters departing Seoul Detention Center at around 10:05 a.m. and arriving at the Seocho Building at around 11 a.m. According to industry sources, Lee is meeting with working-level executives from Samsung Electronics’ core business divisions such as semiconductors, smartphones, home appliances, and the business support task force (TF) to review management issues. However, he will not preside over an official meeting convening the president-level executives that day. It appears to be a visit to review issues missed during the period of absence.

Earlier, the Ministry of Justice decided on parole on the 9th, and Lee was released from Seoul Detention Center that morning. It has been 207 days since he was re-arrested after being sentenced to two years and six months in prison at the Supreme Court retrial of the state affairs manipulation case held at the Seoul High Court on January 18.

Immediately after his release, he bowed his head and said to reporters, "I caused great concern to the people. I am truly sorry." Vice Chairman Lee added, "I am well aware of the worries, criticisms, concerns, and high expectations directed at me," and said, "I will work hard." Amid sharply divided public opinion opposing his parole, this is interpreted as his intention to meet social expectations and redeem criticism through management performance. Analysts also interpret his decision to visit the Seocho Building first instead of his home or other expected destinations immediately after release as a demonstration of this resolve.

In the business community, expectations are growing that Lee will return to the forefront of management amid the global hegemony competition over semiconductors and the prolonged economic crisis caused by COVID-19, overseeing major investments and other pressing issues to reignite Samsung’s growth engine.

One of the immediate matters expected to be reviewed by Vice Chairman Lee is the construction and expansion of Samsung Electronics’ foundry (semiconductor contract manufacturing) plants in the United States. Samsung Electronics is currently negotiating incentives such as tax benefits with local governments in Texas, Arizona, and New York for this investment, which involves pouring in about 20 trillion won.

Some speculate that investment in the third plant (P3) being built at the Pyeongtaek campus may be announced. Samsung Electronics has declared it will invest 171 trillion won in system semiconductors by 2030, with domestic investments centered around Pyeongtaek.

Samsung SDI’s entry into the U.S. battery plant market is also expected to materialize soon. According to local media, Samsung SDI has selected Bloomington-Normal, about a two-hour drive from Chicago, Illinois, as one of the main candidate sites for a new plant and is discussing with local governments and others.

Additionally, amid ongoing shortages in COVID-19 vaccine supply, there are expectations that Vice Chairman Lee will play a private envoy role to secure vaccines by leveraging his global network.

Meanwhile, it is anticipated that Lee will take a rest during the holiday period starting from that day through Liberation Day and the substitute holiday on the 16th, spending time with his family. There is also a possibility that he will visit the ancestral burial site of the late Chairman Lee Kun-hee in Suwon during the holidays. A Samsung Electronics official said, "There is nothing to confirm yet regarding Vice Chairman Lee’s management activities or specific schedule," and refrained from further comment.