JY Taking a Rare Breather... Continuing Future Plans Even During Chuseok

Trial Schedule Also Pauses for a Week
Likely to Seek Post-Corona Measures Domestically

Samsung Electronics Vice Chairman Lee Jae-yong (center) is visiting the 'Samsung Youth Software Academy (SSAFY)' training site in Gangnam-gu, Seoul on the 14th, engaging in conversation with related personnel. [Image source=Yonhap News]

[Asia Economy Reporter Kim Heung-soon] About a month after his parole, Samsung Electronics Vice Chairman Lee Jae-yong is expected to focus on reviewing business-related issues and planning the group’s future during the five-day Chuseok holiday. This is because he has finally gained time to organize his future plans, free from trial-related schedules. It is anticipated that the pace of implementing Samsung’s 'Post-COVID-19 Era Preparation Plan,' which emphasizes investment, employment, and coexistence, will accelerate.

Holiday Overseas Business Trip Unlikely to Happen
Likely Considering COVID-19 Resurgence

According to the business community on the 18th, Vice Chairman Lee, who had previously used holiday breaks for overseas business trips, is expected to stay in Korea during this Chuseok holiday and devote time to planning future businesses. This is because COVID-19 is resurging, and since his parole on the 13th of last month, he has been attending weekly trials, leaving little time to fully grasp current issues. The trial where Lee is charged with violations of the Capital Markets Act and the Financial Investment Services and Capital Markets Act is scheduled to take a break on the 23rd, during the Chuseok holiday, and resume on the 30th.

Previously, Lee often engaged in overseas management activities around holidays, such as taking a business trip to the United States during the 2014 Lunar New Year holiday. Even before his detention, in January last year during the Lunar New Year, he visited Samsung Electronics’ Manaus plant in Brazil, which produces smartphones, TVs, and home appliances. Right after the Chuseok holiday in October of the same year, he visited ASML headquarters in Eindhoven, Netherlands, as well as Switzerland and Vietnam consecutively.

A Samsung official explained, "Employees working at overseas subsidiaries must continue their work regardless of domestic holidays, so Vice Chairman Lee has promoted overseas business trips around holidays to encourage them and to review business-related issues." Although there was speculation that he might undertake overseas trips such as to the United States during this first holiday since his parole, it did not materialize. This is interpreted as reflecting the voices of civic groups opposing his return to management due to employment restrictions.

Prime Minister Kim Boo-kyum (left) and Samsung Electronics Vice Chairman Lee Jae-yong are applauding at the 'Samsung Youth Software Academy (SSAFY)' training site held on the 14th at Multicampus in Yeoksam-dong, Gangnam-gu, Seoul. Photo by Kim Hyun-min kimhyun81@

Reviewing Investment Issues Including Semiconductors
Exploring Social Responsibility Measures Such as Employment and Coexistence

Even while staying in Korea, he faces significant issues requiring management planning. Notably, Samsung Electronics must select a site for a new foundry (semiconductor contract manufacturing) plant in the United States, involving an investment of about 20 trillion won. Currently, negotiations are underway with four to five candidate locations, including Taylor and Austin in Texas, as well as New York and Arizona, focusing on tax incentives and other benefits. Samsung must also review its announced large-scale mergers and acquisitions (M&A) plans aimed at strengthening global business capabilities.

Last month, Samsung announced a future preparation plan for the post-COVID-19 era, emphasizing investment, employment, and coexistence. The plan includes investing 240 trillion won and hiring 40,000 people over the next three years to enhance competitiveness in strategic businesses such as semiconductors and bio sectors. To expand youth employment, Samsung recently decided to participate in the government’s 'Youth Hope ON' project, pledging to create an additional 10,000 youth jobs annually, totaling 30,000 over three years, as part of its social contribution plan. Consequently, the total number of jobs Samsung has recently formalized amounts to 70,000. Detailed implementation plans related to this must also be explored.

Samsung stated, "We plan to redefine the direction of Samsung’s CSR (Corporate Social Responsibility) activities and establish concrete measures to ensure that our CSR efforts contribute more substantially to society." Since his parole, Vice Chairman Lee has actively supported domestic economic revitalization and mutual growth, choosing the government’s youth job creation project site as his first official external activity. A business community official said, "Since Vice Chairman Lee pledged to 'transform Samsung into a company trusted by the people,' Samsung is expected to put more effort into social contribution areas that align with this commitment."