New projects related to 6G and IT in the UAE and new cities in Saudi Arabia are discussed, but investment in smartphones and batteries is expected to be reviewed in Malaya and Vietnam.
With Samsung Electronics Chairman Lee Jae-yong leaving for overseas field management on the 6th, attention is being paid to what new businesses will be materialized during this business trip. There are also speculations that Chairman Lee may actively pursue investment activities such as large-scale mergers and acquisitions (M&A) as he carries the burden of judicial risk.
According to the business world on the 7th, Chairman Lee Jae-yong departed for the United Arab Emirates (UAE) and Southeast Asian countries through the Seoul Gimpo Business Aviation Center on the afternoon of the 6th.
The Middle East and Southeast Asia, which Chairman Lee is visiting this time, have great growth potential, and affiliates such as Samsung Electronics are trying to continuously increase investment to discover new businesses. Chairman Lee has been visiting these regions one after another for several years, and with the recent acquittal, he has been freed from management shackles and is able to materialize new business through this business trip.
Chairman Lee is expected to visit the UAE in the Middle East and Malaysia in Southeast Asia, and other destinations have not yet been specifically announced.
The UAE, the first destination visited, is Chairman Lee’s first business trip since assuming the position of chairman in October 2022. In the UAE, there is the ‘Barakah Nuclear Power Plant’, Korea’s first overseas nuclear power plant construction project in which Samsung C&T participated, so Chairman Lee can visit there first.
In particular, there is a possibility of cooperation with the UAE related to next-generation communication networks such as 6G, new IT businesses, and semiconductors. Chairman Lee previously met continuously with influential figures in the UAE. Abu Dhabi President Muhammad bin Zayed Al Nahyan visited Samsung Electronics’ Hwaseong plant during his reign as crown prince in 2019 and inspected the 5G and semiconductor exhibition hall and production lines.
Chairman Lee visited the UAE in 2022 and discussed mid- to long-term strategies with heads of corporations in the Middle East, including Samsung Electronics. At the time, he said, “The Middle East, which is pursuing a revolution to find new growth engines, is a land of opportunity.”
There is also a possibility that Chairman Lee will visit Saudi Arabia to discuss discovering new mega-national projects such as ‘Neom City’. Chairman Lee also accompanied President Yoon Seok-yeol’s visit to Saudi Arabia last year and attended the ‘Korea-Saudi Investment Forum’. Since cooperation measures such as new city construction, ICT, hydrogen, and mobility were discussed to some extent at the time, the project can be concreted by revisiting the site this time.
The possibility that Chairman Lee will use oil money to engage in large-scale M&A cannot be ruled out.
In the case of Southeast Asia, discussions are expected to take place on businesses related to mobile devices such as smartphones, batteries, and battlefields.
In Vietnam, there are two Samsung Electronics smartphone factories and a TV/home appliance factory. There is also the largest mobile device research and development center in Southeast Asia, and Chairman Lee is so interested in this center that he even attended its completion ceremony. There is also the possibility of expanding Samsung’s flagship smartphone production in Vietnam.
Investment discussions on batteries and electronic components are expected to take place in Malaysia. Samsung SDI will invest 1.7 trillion won by 2025 to build a cylindrical battery production plant for electric vehicles.
A business official said, “Chairman Lee can speed up discussions on new overseas businesses and M&As,” and added, “His active overseas management actions may continue in the future.”
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2024-02-07 06:10:00
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