A New Test for a Success Story Beyond Lee Kun-hee
A Decade-long Judicial Risk Comes to an End
Organizational Restructuring and Leadership Overhaul Expected... 'Lee Jae-yong System' to Take Shape
Business Community: "Now Is the Time to Prove Leadership Through Performance and Strategy"
With the Supreme Court's acquittal of Samsung Electronics Chairman Lee Jae-yong on charges of unfair merger and accounting fraud, a judicial risk that had persisted for nearly a decade has come to an end. The business community believes that this verdict will serve as an opportunity for a substantial shift in Samsung's management approach, beyond being a mere legal conclusion.
While Chairman Lee has so far taken a cautious approach, focusing on maintaining existing businesses and risk management, the conditions are now in place for him to make more aggressive and strategic decisions in a variety of fields, including artificial intelligence, foundry, and bio.
On July 17, an industry insider commented, "Now that the owner's judicial risk has been resolved, leadership will be evaluated based on actual business performance," adding, "It is time to demonstrate responsible management by delivering tangible business changes."
There are also growing calls for Chairman Lee to deliver concrete results under the 'Lee Jae-yong system,' surpassing the era of Lee Kun-hee. Whereas Samsung's past leap forward was based on manufacturing innovation centered on semiconductors and mobile phones, the business community now believes the company must build a new growth story through artificial intelligence, data-driven industries, and securing cutting-edge technologies.
The most urgent task is to restore competitiveness in semiconductors. After losing its leadership in the high-bandwidth memory (HBM) market to SK hynix, there have also been ongoing assessments that the technology gap with Taiwan's TSMC in the foundry sector has widened. In particular, issues with yield rates in advanced processes below 2-nanometers and prolonged delays at the Taylor plant in Texas have made it critical to regain customer trust.
The artificial intelligence semiconductor strategy is also expected to gain momentum. While Samsung Electronics has recently invested in AI startup FutureRAM and embarked on developing high-performance, low-power NPUs (neural processing units), it has yet to launch its own proprietary platform or market-leading product. A comprehensive strategy is required, including expanding HBM production, developing in-house AI semiconductors, and strengthening customized foundry services for clients.
New business areas, including Samsung Biologics, are also expected to undergo restructuring. Although the company has succeeded in expanding its scale based on contract development and manufacturing organization (CDMO) services, some analysts point out that Samsung's presence in new drug development and securing original technologies is not as strong as its competitors. There are also expectations that business structure adjustments through selection and concentration could follow in sectors such as automotive electronics, batteries, and digital healthcare.
Changes are also anticipated at the organizational level. There is a high possibility of a shift from a 'risk management system' designed to guard against legal risks for the owner, to an 'aggressive business system' focused on future businesses. Adjustments to the authority of professional managers may be considered, and there are observations both inside and outside the industry that this could lead to the full-scale implementation of the 'Lee Jae-yong system.'
The business community hopes that, following this verdict, Samsung Electronics will be able to concentrate more on future strategic businesses. An industry representative stated, "Chairman Lee Jae-yong's acquittal is likely to serve as a positive signal for normal corporate management and securing global competitiveness," adding, "With uncertainty resolved, we also expect this to contribute to the overall stability of Korean industry and the revitalization of investment."
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