Lee Jae-yong to Visit Middle East on Night of 6th... Likely to Explore New Business in UAE and Saudi Arabia (Comprehensive)

Lee Jae-yong, Vice Chairman of Samsung Electronics / Photo by Dongju Yoon doso7@

[Asia Economy Reporter Kim Heung-soon] Samsung Electronics Vice Chairman Lee Jae-yong will depart for a business trip to the Middle East on the night of the 6th.

According to related government departments and the business community, Vice Chairman Lee is scheduled to attend the trial regarding the unfair merger of Samsung C&T and Cheil Industries and the accounting fraud allegations involving Samsung Biologics at the Seoul Central District Court on the same day, and then immediately depart for the United Arab Emirates (UAE).

Vice Chairman Lee's trial is usually held every Thursday, but this week it was moved up to Monday due to circumstances on the defendant's side. Accordingly, he will utilize the nine-day period until the next trial date (the 16th) for his overseas business trip. This marks his second overseas trip just 12 days after returning from a U.S. trip from the 14th to the 24th of last month.

Due to the recent spread of the new COVID-19 variant Omicron, incoming travelers must quarantine for 10 days; however, Vice Chairman Lee is exempt from quarantine as he qualifies as an "essential corporate personnel such as executives." His overseas trip was also disclosed after submitting a "Corporate Fast Track" to government agencies.

During his trip, Vice Chairman Lee is expected to visit the UAE and Saudi Arabia to restore the previously disrupted global network, inspect local businesses, and explore new business opportunities.

The business community views Vice Chairman Lee's Middle East trip as a direct effort to reduce dependence on oil, expand exchanges with Middle Eastern countries pursuing new leaps in the Fourth Industrial Revolution era, and pioneer new markets.

Lee Jae-yong, Vice Chairman of Samsung Electronics / Photo by Hyunmin Kim kimhyun81@

Exploring New Business Opportunities in the Middle East... Accelerating 'Future Preparation'

Vice Chairman Lee has continuously engaged with top leaders in the Middle East to secure Samsung's future growth engines. A representative example is his meeting with Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, UAE, in February 2019, where they discussed cooperation in information technology (IT), 5G, and other areas.

Subsequently, Crown Prince bin Zayed, who visited Korea, was invited to Samsung Electronics' Hwaseong plant, where 5G communication was demonstrated and a smart factory integrated with advanced technologies was introduced. At that time, Crown Prince bin Zayed wrote in the guestbook, "I was deeply impressed by the innovations and cutting-edge technologies being developed here to improve the quality of human life," adding, "The UAE is very interested in adopting new technologies and supports companies that contribute to society."

In June 2019, Vice Chairman Lee met with Mohammed bin Salman Al Saud, Crown Prince of Saudi Arabia, who visited Korea, at the Seungjiwon. They discussed cooperation plans in future growth industries. It is known that the Saudi side showed great interest in the future vision presented by Vice Chairman Lee, including artificial intelligence (AI), 5G, and system semiconductors.

In September of the same year, Vice Chairman Lee visited Saudi Arabia and met Crown Prince bin Salman in Riyadh to exchange views on cooperation in various fields such as local technology, industry, construction, energy, and smart cities. He also visited the Riyadh downtown subway construction site, which Samsung C&T is building, to encourage employees.

The business community believes that the successive meetings between Vice Chairman Lee and Crown Prince bin Salman reflect the alignment of visions between Lee, who is focusing on discovering Samsung's "future food sources," and Crown Prince bin Salman, who is leading Saudi Arabia's national reform project "Vision 2030." In June 2019, at a Samsung executive meeting, Vice Chairman Lee emphasized, "We must quickly respond by identifying areas where Samsung can excel in future industries in Middle Eastern countries and prepare plans to strengthen cooperation," adding, "To realize opportunities, we must break the existing framework."