Lee Jae-yong Archives - Gizmochina

Samsung Chairman Lee Jae-yong cleared of charges in merger case

Soumyakanti — Mon, 05 Feb 2024 14:11:58 +0000

Samsung Electronics Chairman Lee Jae-yong was cleared of all charges in a high-profile court case on Monday, marking a significant moment for both the tech giant and the South Korean legal system.

Legal Victory for Samsung’s Lee Jae-yong

The case centered around accusations of stock manipulation and accounting fraud linked to the 2015 merger of two Samsung affiliates, Cheil Industries Inc. and Samsung C&T Corp. This merger was critical as it was alleged to have been orchestrated to strengthen Lee Jae-yong’s control over Samsung Electronics, the crown jewel of the Samsung conglomerate.

The Seoul court’s verdict not only absolves Lee of any wrongdoing but also ends a lengthy legal saga that has captured public and international attention. Prosecutors had previously sought a five-year jail term for Lee, arguing that the merger was manipulated to inflate the stock price of Cheil Industries while undervaluing Samsung C&T, adversely affecting minority shareholders and consolidating Lee’s grip on the electronics giant.

However, the court found insufficient evidence to support these claims. It ruled that the merger could not be deemed unfair as it was decided upon after thorough review and consideration by the boards of the involved companies, with a reasonable purpose beyond merely facilitating Lee’s succession. This decision not only frees Lee from potential incarceration but also removes a cloud of legal uncertainty that has hovered over Samsung Electronics for years.

The ruling comes at a crucial time for Samsung, which has faced challenges including a sales slump and intensified competition in the global tech market. The company, once the world’s top smartphone maker, recently lost its leading position to Apple and has reported consecutive quarters of profit decline amid sluggish demand for consumer electronics and semiconductor chips.

Lee Jae-yong’s acquittal allows him to focus more intently on steering Samsung through these turbulent times. Under his leadership, the company aims to regain its competitive edge and innovation prowess, crucial for navigating the rapidly evolving technological landscape and geopolitical risks.

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Samsung announces $205 billion investment plan to expand its business

Jeet — Wed, 25 Aug 2021 05:58:29 +0000

Samsung Group, one of the world’s largest companies, has unveiled a new expansion plan under which the South Korean tech giant is planning to spend around 240 trillion won, which is around $205 billion.

As a part of the plan, Samsung will be hiring about 40,000 people over the next three years as the company advances towards next-generation technologies. Its subsidiaries will be spending money on Research & Development as well as corporate acquisitions.

The company has revealed that it is setting aside 180 trillion won for its home country South Korea and aims to hire another 10,000 people over the period. It’s noteworthy that this new expansion plan includes expenditures previously outlines by Samsung.

The South Korean giant has planned to invest around $151 billion through 2030 to delve deeper into advanced chipmaking. The company is also expected to proceed aggressively as Lee Jae-yong has now been released from the prison on parole after being sentenced to jail earlier this year for bribery.

Samsung is now expected to have further development related to its semiconductor plant in the United States for which the company is spending about $17 billion. It is among the leading chipset maker in the world, competing against Taiwan Semiconductor Manufacturing Co. (TSMC) after the withdrawal of Huawei from the market. It plans to go ahead with the long-term vision in terms of technology rather than the short-term goals.

Along with that, the South Korean giant is also looking to expand its biopharmaceutical business through its subsidiaries Samsung Biologics and Samsung Bioepisit. The group will build two new factories in addition to the three currently in operation with the aim of starting vaccine production.

Samsung Changes Management following Bribery Scandal

Habeeb Onawole — Mon, 06 Feb 2017 15:12:03 +0000

The Galaxy Note 7 fiasco wasn’t the only issue Samsung had to battle with in 2016. The South Korean corporation was caught up in a messy bribery scandal that led to the impeachment of the country’s President, Park Geun-Hye.

Samsung’s heir apparent Lee Jae-yong (Jay Y. Lee) and some other high-ranking officers have been named as suspects in the scandal. The corporation today has therefore announced that it will be making some changes in its business management strategy.

First, the company will be pulling out of the Federation of Korean Industries (FKI) which is the country’s largest lobbying organization. FKI is said to have played a major role in the scandal and is alleged to have acted as the middleman between the government and its own members. Samsung Electronics Co. has already withdrawn and the other arms of the corporation should follow suit.

Samsung has also announced that after the government’s probe ends, it will dissolve its corporate strategy office. The strategy office nicknamed the ‘control tower’ is said to be the nerve center through which Samsung is controlled. It is made up of about 200 executives specially chosen by the Lee family.

The changes are not expected to affect the way Samsung is run in relation to its products. The company’s next flagship phone, the Galaxy S8 is expected to be privately unveiled in Barcelona during this year’s MWC holding at the end of the month.

(Source, via )

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