Grandson of Samsung’s founder takes control of empire as earnings fall

Samsung Electronics has appointed Lee Jae-yong — who is known in the West as Jay Y. Lee — as its executive chairman, giving the grandson of the company’s founder formal control, Today, the South Korean tech giant revealed its plans. This announcement was made the same day Samsung announced a number of new products. Remarkable earnings resultsProfits fell 23 percent in the third quarter compared to the preceding quarter.

According to Samsung’s official announcement justifying the appointment, “the Board cited the current uncertain global business environment and the pressing need for stronger accountability and business stability in approving the recommendation.” Samsung is currently battling a slump in demand for several of its key businesses including memory chips, mobile phones, and TVs. It doesn’t expect demand to pick back up until the The second half of next years.

Lee’s ascension is unlikely to change much for the company in the short term, Bloomberg Notes, given he’s long served as Samsung’s de-facto leader. However, Lee will now have the authority to make more strategic decisions and guide the company through turbulent times. This includes pushing for acquisitions and mergers and investing in emerging technologies.

54-year old Lee succeeds his father, Lee Kun-hee, as head of South Korea’s largest company following his Death in October 2020. After suffering a heart attack in 2014, Lee Kun-hee was left permanently incapacitated. Lee Kun-hee was the younger of two who had been involved in a corruption/bribery scheme Since 2017, and has been sent to Prison Do it twice. Lee was presented A presidential pardon in August of this yearThis allowed him to assume formal control of the electronics firm. The pardon was reminiscent of the two given to Lee’s father, who was convicted of corruption and tax evasion in 1996 and 2008.

“Without a doubt, we are at a pivotal moment,” Lee said in a statement reported by Bloomberg. “Now is the time to plan our next move. Now is the time to act, to be bold and unwavering in our focus.”