By Kang Seung-woo
Samsung Electronics Vice Chairman Lee Jae-yong has embarked on a business trip to Europe to secure new growth engines and meet with global business partners, according to the company, Monday.
It is Lee's first business activity since his release from jail last month.
"Vice Chairman Lee has left for Europe and during his trip, he will mainly look for new engines for growth and meet global business partners," said a Samsung official without elaborating on who he will meet and when he will return.
According to Samsung, Lee departed for Europe last Thursday when the tech giant commemorated its 80th anniversary. The nation's largest conglomerate did not hold any celebrations on the day.
Lee was freed from prison, Feb. 5, after an appeals court reduced a five-year prison term for corruption charges to two-and-a-half years suspended for four years.
Lee had spent nearly one year behind bars for his involvement in a political corruption scandal that removed then-President Park Geun-hye from office.
Market watchers see Lee's first official activity -- 45 days after his release -- as re-launching Samsung's global management, including mergers and acquisitions (M&A). He last made an overseas business trip in September 2016 to India.
In November 2016, Samsung announced it took over Harman for $8 billion in order to gain a significant presence in the rapidly growing market for connected technologies -- particularly automotive electronics. The deal was completed in March 2017.
The largest-ever buyout deal by Samsung was the first major acquisition attempt since Lee joined the firm's board of directors in October 2016.
However, since then, Samsung's large-scale M&A has been suspended due to the leadership vacuum, raising concerns that the Korean company may lag behind global information technology (IT) players such as Google, Amazon and Apple that are committed to taking over companies in the areas of artificial intelligence (AI), internet of things (IoT) and augmented reality (AR) amid the arrival of the Fourth Industrial Revolution.
Lee is also expected to meet CEOs and owners of global companies to repair his network that was damaged during his jail term.
In Europe, Lee is said to meet executives of Exor, the holding company for Italy's Fiat Chrysler Automobiles. Until last year, he was a member of Exor's board of directors.
"Despite Lee's absence at the helm, Samsung's experienced professional executives handled business activities without a hitch. However, they could not make big decisions on M&A and strategic alliances," said an official of the business circles.
"His trip appears to have to do with decisions that can only be made by owners."
Samsung Electronics Vice Chairman Lee Jae-yong has embarked on a business trip to Europe to secure new growth engines and meet with global business partners, according to the company, Monday.
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| Samsung Electronics Vice Chairman Lee Jae-yong |
"Vice Chairman Lee has left for Europe and during his trip, he will mainly look for new engines for growth and meet global business partners," said a Samsung official without elaborating on who he will meet and when he will return.
According to Samsung, Lee departed for Europe last Thursday when the tech giant commemorated its 80th anniversary. The nation's largest conglomerate did not hold any celebrations on the day.
Lee was freed from prison, Feb. 5, after an appeals court reduced a five-year prison term for corruption charges to two-and-a-half years suspended for four years.
Lee had spent nearly one year behind bars for his involvement in a political corruption scandal that removed then-President Park Geun-hye from office.
Market watchers see Lee's first official activity -- 45 days after his release -- as re-launching Samsung's global management, including mergers and acquisitions (M&A). He last made an overseas business trip in September 2016 to India.
In November 2016, Samsung announced it took over Harman for $8 billion in order to gain a significant presence in the rapidly growing market for connected technologies -- particularly automotive electronics. The deal was completed in March 2017.
The largest-ever buyout deal by Samsung was the first major acquisition attempt since Lee joined the firm's board of directors in October 2016.
However, since then, Samsung's large-scale M&A has been suspended due to the leadership vacuum, raising concerns that the Korean company may lag behind global information technology (IT) players such as Google, Amazon and Apple that are committed to taking over companies in the areas of artificial intelligence (AI), internet of things (IoT) and augmented reality (AR) amid the arrival of the Fourth Industrial Revolution.
Lee is also expected to meet CEOs and owners of global companies to repair his network that was damaged during his jail term.
In Europe, Lee is said to meet executives of Exor, the holding company for Italy's Fiat Chrysler Automobiles. Until last year, he was a member of Exor's board of directors.
"Despite Lee's absence at the helm, Samsung's experienced professional executives handled business activities without a hitch. However, they could not make big decisions on M&A and strategic alliances," said an official of the business circles.
"His trip appears to have to do with decisions that can only be made by owners."
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