[사설] Samsung Electronics has fallen into leadership crisis in the midst of global technology war

Lee Jae-yong, vice chairman of Samsung Electronics, was sentenced to imprisonment in June of 2 years and was imprisoned in court at a trial for the destruction of the Gukjeong Nongdan case. The judiciary admitted guilty to the charge that Vice-Chairman Lee asked former President Park Geun-hye and Choi Seo-won (previously renamed Choi Soon-sil) for help in succession of management rights, as well as bribe 8.68 billion won. It is in accordance with the purpose of the 2019 ruling for revocation of the Supreme Court alliance. Regarding the activities of the Samsung Compliance Committee, which were expected to affect the sentencing, it was judged that “it is difficult to say that the effectiveness criteria were met.”

Samsung Electronics faced a leadership crisis again due to the imprisonment and redemption of Vice Chairman Lee. This is due to the increased uncertainty due to the long-term absence of the CEO. After the Corona 19 incident, the global technology war is highly likely to intensify in the fields that Samsung Electronics focuses on, such as semiconductors, smartphones, and artificial intelligence (AI).

This is the case in the foundry market, which is Samsung Electronics’ new growth engine. As demand for foundries surged due to the commercialization of autonomous vehicles, AI home appliances, and fifth-generation mobile communications, Taiwan’s TSMC, a leading company, announced an investment plan of over 40 trillion won this year. On the other hand, Samsung Electronics, which was bound by judicial risk, was unable to speed up its investment, but the situation was made even more difficult due to Lee’s restraint.

If Samsung’s investment is delayed due to a leadership gap and is concentrating on the global market, it will have a negative impact on the Korean economy. Samsung’s position in our economy is absolute. Samsung Group sales reached 314 trillion won as of 2019. It amounts to 16% of gross domestic product (GDP). The share of the total corporate tax of domestic companies is also similar. The market capitalization of Samsung Electronics exceeds 500 trillion won and is close to 25% of the total market cap of KOSPI. Even if Vice-Chairman Lee is arrested, the planned investment will not stop, but there are limitations in responding to the rapidly changing environment. I am worried that the lack of leadership for a long period of time can delay entry into new businesses and quick decision-making, resulting in the loss of global competition.

We hope that Samsung will minimize the damage of the leadership gap and overcome the crisis wisely.
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