[Inside Chodong] Now, Not the Courtroom, But the Future

"Can we now run on two feet?" This is a phrase heard among Samsung employees. Over the past few years, it felt like responding to trials with one foot while managing practical work with the other. During the ongoing judicial risks faced by the group’s head, Samsung found it difficult to fully commit on the global stage.

Returning to the Samsung Electronics press room after five years, the company’s status is no longer what it used to be. Once a company proud of being number one in the world, shouting 'super-gap,' it now sets its goal as 'restoring technological competitiveness.' The fact that passing quality tests for semiconductor products supplied to Nvidia recently made breaking news highlights Samsung’s current position.

It is hard to say that the long legal battles were unrelated to Samsung’s changes. Recently, the second trial acquitted Chairman Lee Jae-yong of charges related to management succession and unfair mergers. Since being indicted in 2016 for the national corruption scandal, Lee was additionally indicted in 2020 for unfair mergers and accounting fraud, enduring about nine years of judicial risk. During this period, he was detained twice, spending a total of 560 days in custody and appearing in court 185 times.

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Meanwhile, Samsung had no choice but to respond more sensitively to domestic public opinion and policy changes rather than focusing on technology development and new business expansion. As the chairman’s trial prolonged, strategic decision-making and investments were delayed, weakening its position in the global market. Although the acquittal was announced, legal uncertainties have not been completely resolved. The prosecution has requested external opinions from the Prosecutors’ Investigation Deliberation Committee under the Supreme Prosecutors’ Office to decide whether to appeal the ruling. While the possibility of overturning the acquittal is low, the path ahead for Samsung is not entirely smooth.

The greatest loss is the irretrievable time. The nine years of trials were not merely Lee Jae-yong’s personal legal battles but also transitional costs paid by Korean society. In the process of contemplating important questions such as corporate governance transparency, fairness in management succession, and the relationship between law and the market, and correcting past wrongful practices, our society inevitably paid a learning cost. This was an essential process for the maturation of our economy and corporate culture, but the cost was by no means small. While the global market rapidly changed, Samsung hesitated in investment and strategic decisions due to legal risks, falling behind in competition. Of course, if we examine the fundamental causes of this situation, it is undeniable that Samsung’s previously opaque decision-making system and governance issues played a role. Structural problems revealed during the trials remain challenges to be resolved.

Now, Samsung’s task is no longer to remain focused on risk management or defensive responses. To make a leap forward, it must return to the essence of its business. It needs to restore technological competitiveness and accelerate investment and innovation in future industries.

Prolonged legal battles have already consumed enormous time and resources, and further legal responses would only be unnecessary costs. For sustainable growth, Samsung must break the vicious cycle of judicial risks and focus on research and development (R&D) and new business investments. Beyond short-term performance recovery, it is essential to enhance transparency in corporate operations and establish an independent management system to build a foundation for long-term growth. Only when an environment is created that allows exclusive focus on technological innovation and market pioneering can Samsung achieve a true leap forward. Lost time must never be repeated.