-
>
“Lee's Vision for ‘New Samsung’ Hangs in the Balance as Verdict Looms”
전소영 기자
입력 : 2023.11.28 11:05
ㅣ 수정 : 2023.11.28 11:05
Samsung Faces Leadership Crisis as Verdict Looms in Illegal Succession Trial
SEOUL (news2day) - In the midst of the ongoing first-instance verdict proceedings over the allegations of "illegal management succession" against Lee Jae-yong, the Chairman of Samsung Electronics, the prosecution has concluded its case, seeking a prison sentence for the Chairman. The fate of Lee Jae-yong is now in the hands of the court.
The legal risk facing the top executive has far-reaching implications for the overall management of the company. Consequently, the current trial is viewed not merely as a personal issue for the Chairman but as a concern affecting the entirety of Samsung.
Samsung, grappling with an unprecedented semiconductor crisis this year, is experiencing its worst performance, and the uncertainties surrounding its business environment make the absence of its leader potentially detrimental.
As the verdict looms, there is a sense of unease within Samsung's internal atmosphere, particularly with the year-end approaching.
According to industry sources, Chairman Lee became embroiled in controversy in 2015 for allegedly unlawfully intervening in the merger of Jeil Worldwide and Samsung C&T to strengthen the group's control and ensure a stable succession of management.
He faced charges of violating capital market laws, external audit laws, and business embezzlement, and the trial has been ongoing for approximately three years since September 2020.
The first-instance verdict hearing took place on the 17th of November. Throughout the proceedings, Samsung argued that the Chairman had not directly intervened in the merger and had never prioritized personal gain.
However, the prosecution has sought a substantial penalty, proposing a prison term of five years and a fine of 500 million won. This decision takes into account Chairman Lee's final decision-making authority and the fact that he stands to gain from the alleged actions.
Samsung is currently hopeful for a reduction in the sentence during the final verdict, aiming for the best-case scenario of acquittal or a suspended sentence. Nevertheless, the possibility of the Chairman's arrest cannot be entirely ruled out. If he is imprisoned, Samsung would face another leadership vacuum, leading to a period of emergency management.
This potential scenario is a significant concern for both Samsung and Chairman Lee. The Chairman, previously entangled in legal issues related to the 2017 national scandal, experienced arrest during the first trial in February 2017. After being released on probation in August 2018, practical participation in management was restricted due to employment limitations.
This restriction had tangible consequences for Samsung's strategic decisions. The absence of major mergers and acquisitions (M&A) since the Chairman's initial arrest is notable. Despite occasional mentions of M&A possibilities by key executives, no such deals were executed.
Large-scale investments also fluctuated depending on the Chairman's active involvement. After his release and the subsequent significant investments in 2018 and 2020, no major announcements of additional investments were made in 2021, a year in which he was again incarcerated.
Considering this history, if the Chairman faces another leadership vacuum due to the illegal succession trial, the repercussions for Samsung could be substantial.
In 2022, after being released on probation as a special presidential pardon, Chairman Lee ascended to the leadership role and significantly accelerated Samsung's activities. Over the past year, he actively oversaw core businesses such as semiconductors, displays, and batteries, contributing to the accelerated transformation of "New Samsung."
This year, Samsung's semiconductor business, its major source of strength, hit rock bottom. Facing continuous losses in the first and second quarters, totaling 8.94 trillion won in operating losses, the company was surrounded by crisis talks.
Chairman Lee's assertive actions during this challenging period reflected Samsung's DNA of turning crises into opportunities.
Amidst rapidly changing industrial landscapes, Samsung is gearing up for proactive responses to future challenges, focusing on innovation and growth preparation.
While there are positive signals indicating a semiconductor industry recovery in the latter half of next year, losing Chairman Lee, Samsung's key driving force, at a time when the company is rebounding from its lowest point, raises concerns about weakened competitiveness.
Chairman Lee emphasized these points in his plea to the court, expressing his commitment to generating continuous profits for the company and creating more job opportunities for young talents. He underscored his dedication to steering Samsung into becoming a truly world-class and beloved company.
Industry insiders stress the critical role of top leadership in challenging business environments. Chairman Lee assumed the leadership role during challenging times, directly overseeing major domestic and international business operations, raising expectations for Samsung's crisis management and future growth potential.
They further emphasized that with Chairman Lee having laid the groundwork for the leap to "New Samsung" over the past year, it is now time to expand on these foundations. Therefore, the impending verdict, even if it results in an acquittal or a suspended sentence, is crucial to preventing a leadership vacuum at Samsung and ensuring the Chairman's continued presence during a time when his influence is needed more than ever.
By Soyeong Jeon / jsy@news2day.co.kr
댓글 (0)
- 띄어 쓰기를 포함하여 250자 이내로 써주세요.
- 건전한 토론문화를 위해, 타인에게 불쾌감을 주는 욕설/비방/허위/명예훼손/도배 등의 댓글은 표시가 제한됩니다.
0
/250
