Jay Y. Lee, heir to the Samsung conglomerate, was appointed executive chairman of Samsung Electronics back in 2022. However, he doesn't have a seat on the board, despite him serving a three-year term as a member from 2016 to 2019 back when he was the vice chairman.
It remains unlikely that his appointment to the board will come up during the board's meeting tomorrow, amidst ongoing calls for Jay Y. Lee to be reappointed so that he may play a more decisive role in the company's management as it faces several challenges.
Lee was last on the board in 2019
Lee has been involved in several legal issues for the better part of a decade, primarily stemming from a controversial 2015 merger between Samsung C&T and Cheil Industries. He's even had stints in prison, but was recently acquitted by a high court in Seoul of the 19 charges against him in the merger case.
The acquittal had led to cautious optimism that with the legal troubles behind him, Lee may be able to return to the board, even as prosecutors appealed the decision to the Supreme Court which initially only reviewed the legal interpretations of the rulings by the subordinate courts.
However, the prosecution has called on the apex court to settle the “differences in the court and the prosecution regarding legal interpretation and judgment.” The board is likely considering the potential impact of any ruling on the matter and thus may not seek to bring Lee back just yet.
Many within and outside the company view Lee's reappointment to the board as crucial for navigating the company out of the challenges it faces. Recent quarters have been tough for Samsung's business. The mobile and home appliance divisions are fighting declining sales and strong competition from Chinese players. The semiconductor division is up against tough market dynamics as well.
Ultimately, the board may decide to wait until Lee is completely free of these lingering legal issues. This would ensure that once he does take up that seat again, there won't be any risk of instability due to any adverse court ruling.
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