Vice-Chairman Lee Jae-yong of Samsung Electronics has become a registered member of board of directors. After Chairman Lee Kun-hee resigned as a registered member in April of 2008, member of owner’s family has finally become a registered member again after 8 years. By performing position of a director, Vice-Chairman Lee is now shouldered with rights and responsibilities that will lead Samsung’s future.
Samsung Electronics held its 48th general meeting of stockholders at multi-purpose room of its company building, which is located in Seocho-gu, on the 27th while 400 people including stockholders, institutional investors, Vice-Chairman Kwon Oh-hyeon, President Yun Bu-geun, President Shin Jong-kyun, and others were in attendance.
This meeting handles two cases: approval of division of Printing Solution Business Department and election of Lee Jae-yon as a registered member of board of directors. These two items were passed as proposed without any objections.
Vice-Chairman will perform duties of a director starting from the 27th. As Vice-Chairman Lee has become a registered member, Department Head (CFO) Lee Sang-hoon of Management Support Team who was a former registered member has stepped down as a registered member. This meeting will be composed of 4 internal directors and 5 external directors just like before.
Samsung Electronics announced that its board of directors will focus on swift investments for company growth, reorganization of businesses for strengthening of major competitiveness, and responses towards changes in business environments through innovation in business culture so that Samsung Electronics can leap upward by one more step.
A reason why Vice-Chairman Lee is becoming a registered member is to strengthen responsible management. To strengthen competitive edge while IT industries are changing rapidly, strategic decision makings such as bold and swift investments and securing of medium and long-term driving forces are required.
Responsibilities for Vice-Chairman Lee have gotten bigger as he has become a registered member. He needs to be responsible for civil and penal problems regarding management and major decision makings and publicly announce annual salaries. Fact that his responsibilities are becoming bigger has something in common with him exercising his rights much bigger. It is predicted that Vice-Chairman Lee’s participation in Samsung Electronics’ management is going to be much bigger.
Industries are interested on what kind of changes he will bring to annual personnel change that will take place in early December and they predict that he will carry out a personnel change that will resemble how he wants Samsung Electronics to look like in the future. There can be even bigger changes if he carries out a personnel change that will reprimand personnel for discontinuation of Galaxy Note 7.
“There won’t be too big of changes as Vice-Chairman Lee has been pushing for reorganization of businesses as he has been leading management since 2014 and participating in personnel change.” said a high-ranking official for Samsung Electronics. “However there will be huge changes to this year’s personnel change as he needs to implement changes as a registered member of board of directors and reprimand responsible personnel for discontinuation of Galaxy Note 7.”
It is predicted that process of reorganization of businesses and governing structures is going to gain speed. Vice-Chairman Lee, who has been participating in group’s management after Chairman Lee Kun-hee was hospitalized, is increasing number of investments towards new businesses such as bio, vehicle components, and AI (Artificial Intelligence). It is predicted that promotion of new businesses will be much more enforced through M&A and other strategies. It is also predicted that process of reorganization throughout governing structures of Samsung’s major subsidiaries will speed up.
“Vice-Chairman Lee is out in the front of management by himself in this difficult time.” said a representative for a financial industry. “If he is able to overcome this difficult time along with election as a registered member of board of directors, he will be able to solidify his position as the top decision maker for Samsung in the future.”
Samsung Electronics’ stock on this day once made a rapid increase up to $1,409 (1.617 million KRW), which is3.19% jump, right after there was a news that Vice-Chairman Lee was elected as a registered member of board of directors. However its stock finished at $1,377 (1.58 million KRW), which is 0.83% jump from previous day, as it had repeated fluctuation.
Staff Reporter Kwon, Keonho | wingh1@etnews.com & Staff Reporter Jung, Yeongil | jung01@etnews.com