Baek Byung-yeul is a journalist at The Korea Times focused on cultural content, including films and cultural events in South Korea. You can contact him at baekby@koreatimes.co.kr to share your insights.
Samsung urged to strengthen competitiveness, work in nation's best interests
Samsung chief Lee Jae-yong, left, and SoftBank CEO Masayoshi Son, right, arrive at the Korea Furniture Museum in Seoul to attend a meeting, July 4, 2019. Korea Times file
By Baek Byung-yeul
By Baek Byung-yeul
Samsung chief Lee Jae-yong was freed from jail on Aug. 13 after the government granted him parole.
Leaving the Seoul Detention Center last Friday, Lee offered a public apology, saying, “I apologize for causing people great concern,” and adding, “I am well aware of the concerns, criticisms and expectations on me.”
In line with Lee's apology, President Moon Jae-in said the same day that he is aware that there are pros and cons to releasing Lee, but added that he is seeking the public's understanding in accepting the decision as it is in the nation's best interests.
The President's remark can be interpreted as suggesting that Samsung, which is active in a wide range of businesses, from chip-making to drug manufacturing, will play a significant role in improving the country's edge amid the COVID-19 pandemic.
Lee is being asked to keep pace with the pending issues the government wants to address, such as facilitating the COVID-19 vaccine supply. However, there are other industry views that Lee should focus more on strengthening the group's own competitiveness, so that Samsung's entire organization does not lose its focus.
There is no doubt that a harsh wind is blowing on Samsung, as the group has undergone difficulties in its business operations, after Lee was imprisoned for about a year from 2017 to 2018 and another seven months from January to August.
While the group has been at a standstill, there have been numerous business issues requiring the decision of the chief, such as mergers and acquisitions in the semiconductor sector. Acknowledging this need, Samsung said that Lee had a meeting with the presidents of the group's affiliates right after he was released from the detention center.
Industry analysts said that utilizing Lee's personal connections with globally influential figures could be a way to improve the Samsung Group's capabilities.
Lee already showed off his personal connections with business figures based abroad.
As Samsung Electronics is intensively investing in the expansion of its foundry business to catch up with the sector's leader, TSMC, Lee had a meeting with ASML CEO Peter Wennink and ASML Chief Technology Officer Martin van den Brink in the Netherlands in October 2020.
ASML is a Dutch photolithography equipment maker and the only supplier of extreme ultraviolet (EUV) lithography equipment, which is vital for fabricating chips at the 7-nanometer node level and below.
Semiconductors have been increasingly considered strategically essential components, and securing chip-producing capability has become more serious that ever at a time when the United States and China are embroiled in trade disputes with each other.
In this situation, Lee met with ASML's chief to not lose its competence in the foundry business, in which Samsung Electronics aims to become the No. 1 player within 10 years.
In addition, Lee has also interacted with various prominent figures, including SoftBank CEO Masayoshi Son, Microsoft CEO Satya Nadella and Google founder Larry Page.
However, there will be some restrictions on Lee's resumption of such networking activities for the time being, due to a five-year ban on his employment. According to the law here, those found guilty of embezzling more than 500 million won and imprisoned are banned from employment at companies for five years after the end of their full prison term.