Samsung Shifts Gears: From Risk Management to Aggressive Investment

Lee Jae-yong Acquitted, Ending a Decade of Legal Risks
Samsung Begins Full-Scale Transformation as Strategy Delays and Investment Postponements End
Resumption of Global Diplomatic Activities for the Chairman, Including Google Camp and APEC, Becomes Visible
Expansion of Businesses Requiring Top-Level Partnerships, Such as Semiconductors, Biopharmaceuticals, and AI
"Now Results Must Speak" ... Lee Jae-yong Faces a Test of Responsible Management

"The maximum investment limit that a professional manager can decide on is no more than 100 billion won. Any investment beyond that requires the owner’s decision."

The head of a major affiliate of one of Korea’s four largest conglomerates, whom I met recently, expressed the difficulty of making large-scale investment decisions. However, looking at it from another perspective, this also means that the owner’s decision becomes even more crucial at key moments.

This statement also sheds light on why Samsung Group was forced to postpone major investments and organizational restructuring multiple times over the past decade due to Chairman Lee Jae-yong’s legal risks.

On July 17, as Lee Jae-yong, Chairman of Samsung Electronics, was acquitted by the Supreme Court of charges related to unlawful merger and accounting fraud, this structural limitation began to shift. With the long-standing legal risk effectively resolved, the legal burden on the owner has been lifted, and Samsung’s strategic decisions and external activities, which had been restrained, are now at a turning point.

According to business circles on July 18, following the confirmation of his acquittal, Chairman Lee is preparing to return to the global stage as his first external activity. He is reportedly considering attending an unofficial global leadership forum (Google Camp) to be held in Italy at the end of this month. In addition, he is also preparing to visit key global business sites during the Chuseok holiday period in October.

In particular, with the Asia-Pacific Economic Cooperation (APEC) Summit and CEO Summit scheduled to be held in Korea starting at the end of October, there is speculation that a sophisticated diplomatic agenda to restore global networks may be carried out in parallel. Samsung has also prepared to bring its previously suspended mid- to long-term investment strategies and organizational management plans back to the discussion table, and to proceed with investment execution and organizational restructuring discussions over the coming months. With the restoration of owner leadership, Samsung is now in a position to not only realign its strategies but also consider changes to its organizational management and decision-making structure.

Chairman Lee’s diplomatic activities go beyond mere symbolism and are directly linked to management strategy. For Samsung’s core businesses such as semiconductor foundry, contract development and manufacturing of biopharmaceuticals (CDMO), and artificial intelligence infrastructure, cooperation with overseas partners is essential. In today’s highly advanced technological ecosystem, the trust and decision-making speed between top executives determine the sustainability of collaborative structures, making the restoration of owner leadership directly connected to the restoration of strategic execution capability.

This Supreme Court ruling is being seen as more than just a personal acquittal; it is regarded as a turning point that signals a substantive shift in the management structure of the nation’s largest business group. The investigations and trials that began after the 2016 Park Geun-hye administration’s political scandal restricted not only Chairman Lee’s external activities but also the group’s strategic decision-making at the corporate level. Chairman Lee has taken a cautious approach to overseas business trips and global issues, and it is known that major decisions such as large-scale mergers and acquisitions (M&A), new investments, and organizational restructuring have been postponed for a long time within the group.

The business community believes that this ruling marks the restart of Samsung’s investment clock. Samsung Electronics and its major affiliates are currently reviewing their existing strategies, focusing on investment review organizations and global business divisions. Many analysts believe that the signs of change will become visible through Chairman Lee’s external activities, as the owner’s moves themselves can serve as the starting point for the restoration of business strategies and partnerships.

Given Samsung’s status as a company that has a significant impact on the nation’s GDP and capital markets, expectations and pressure for the recovery of national competitiveness, beyond just corporate performance, are rising. The pressure to restore performance and technological competitiveness, as demanded by the business community and the public, has also increased. A business insider commented, "Now that the excuse of legal risk is gone, there is even greater pressure to prove ourselves through performance and results."

The business community hopes that, with this ruling, Samsung Electronics will be able to focus more on future strategic businesses. One insider said, "Chairman Lee Jae-yong’s acquittal will serve as a positive signal for the normalization of corporate management and the securing of global competitiveness," adding, "With the uncertainty resolved, we hope this will also contribute to the stability of the Korean industry as a whole and the revitalization of investment."