THE Samsung messed with your hierarchy. The South Korean giant informed, this Thursday (27), that Jae-yong Lee will be the new executive chairman of the company. In addition to being the grandson of the founder of cellphone maker Galaxy, the executive is also known to have been arrested twice for corruption in South Korea.
The announcement comes from a company statement. In a statement, the manufacturer said that Lee received the blessings of the directors of Samsung. “The Board cited the current uncertain global business environment and the pressing need for greater accountability and business stability in approving the recommendation,” they explained.
Jay Y. Lee was arrested in South Korea for corruption
The board’s approval comes after extensive controversy involving the grandson of Lee Byung-chull, founder of Samsung. In February 2017, Jae-yong was arrested in South Korea during a corruption investigation. Then, in August, the heir of the South Korean giant was condemned by the authorities of the Asian country.
Lee Jae-yong, as he is known in Korea, faced another controversy years later. In 2021, the current executive chairman has been arrested once again. The episode continued the legal war, but in August 2022, the businessman received a presidential pardon, allowing him to return to Samsung.
With the way clear, Jae-yong, at age 54, took over as the company’s executive chairman. The heir was appointed after the death of his father Lee Kun-hee in October 2020 when he was 78 years old.
The executive’s appointment came to light together with the announcement of the financial results. According to the report, in the third quarter of 2022, the company had an operating profit of 10.85 trillion South Korean won, down 23% from the previous quarter. Compared to the same period in 2021, the reduction was 31.4%.
Despite the result, the company had good moments in the cell phone division. The business yielded an operating profit of 3.24 trillion won thanks to the launch of Galaxy Z Flip 4 and Galaxy Z Fold 4, the brand’s new foldables. Samsung also had an overall revenue of 76.78 trillion won in the last three months.