Samsung, South Korea’s largest business group, was facing a leadership crisis after its chairman quit in the wake of a scandal, the acting chairman said yesterday.
“Without a captain or rudder, Samsung now faces a complex crisis, with each unit meeting cut-throat competition independently,” Lee Soo-bin said.
“The group was able to ride out a previous crisis together thanks to former chairman Lee Kun-hee’s strong leadership and the guidance of the Strategic Planning Office. Now we cannot do so,” he said.
Special prosecutors this year mounted a three-month probe into corruption allegations against the multinational and charged Lee Kun-hee in April with tax evasion and breach of trust.
He quit the group later that month after almost 20 years at the helm and is now on trial.
Samsung announced management changes, scrapping the 90-strong Strategic Planning Office. It acted as the “control tower” of the loose-knit group, which has 59 affiliates, but was implicated in the scandal.
The group has created two decision-making committees of chief executives from various affiliates to address fears of a vacuum in decision-making.
Acting chairman Lee Soo-bin, the chairman of Samsung Life Insurance, was speaking after holding the first meeting with chief executives of affiliates since Lee Kun-hee’s departure.
When his trial began on June 12, Lee Kun-hee accepted blame for any lapses at the group, which employs 250,000 people and accounted for more than 20 percent of the country’s exports last year.
But his lawyers are contesting the specifics of the charges.
The key point was whether Lee instigated and planned the controversial transfer of control over the group from himself to his son Lee Jae-yong.
Both father and son appeared in court Tuesday, with the son a defense witness for his father.
Lee senior denied authorizing the issuance of low-priced bonds, the basis of the breach of trust charge, so that his son could take over.
He is also charged with evading a capital gains tax bill of 112.8 billion won (US$110 million) and could technically face life in prison if convicted.
Most other Korean tycoons brought to court on criminal charges have escaped severe punishment, with judges citing a negative impact on the economy.
Contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday said it has signed a memorandum of understanding (MOU) with Polar Semiconductor LLC to collaborate on the production of 8-inch wafers in the US. The collaboration aims to strengthen 8-inch wafer manufacturing in the US amid Washington’s efforts to increase onshore manufacturing of semiconductors, contribute to supply chain resilience against shifting geopolitical dynamics, and ensure a secure domestic supply of power semiconductors critical to automotive, electric grids, robotic manufacturing and data centers, the companies said in a joint statement. Under the MOU, Polar and UMC will identify devices for Polar to manufacture at
TECH TITANS: Amazon’s latest chip joins Google in competing for the 90 percent market share held by Nvidia, which claims it is ‘a generation ahead of the industry’ Amazon Web Services (AWS) on Tuesday launched its in-house-built Trainium3 artificial intelligence (AI) chip, marking a significant push to compete with Nvidia Corp in the lucrative market for AI computing power. The move intensifies competition in the AI chip market, where Nvidia dominates with an estimated 80 to 90 percent market share for products used in training large language models that power the likes of ChatGPT. Google last week caused tremors in the industry when it was reported that Facebook-parent Meta Platforms Inc would employ Google AI chips in data centers, signaling new competition for Nvidia. This followed the release last month of
TARIFF TALKS: The US secretary of commerce is eyeing more than US$300 billion in investments and said Taiwan would train US workers, but Taipei has denied the latter US Secretary of Commerce Howard Lutnick said the US is expecting a large investment pledge from Taiwan in trade talks, while President William Lai (賴清德) listed areas that need improvement in order for projects to be completed. “We’re in the midst of discussions,” Lutnick said on Wednesday. “But the fact is, this administration’s goal is to bring semiconductor manufacturing to America.” Lai on Wednesday said Taiwan is supportive of US President Donald Trump’s goal of reindustrializing the US, including efforts to ramp up semiconductor production. Such a goal would require the US to reduce its reliance on Taiwan as a key source
Foxconn Technology Group (富士康科技集團) and Luxshare Precision Industry Co (立訊精密) plan to add millions of gaming devices to Vietnam’s annual output, according to documents they submitted to local authorities, reinforcing the country’s role in the global supply of game consoles. Vietnam assembles a variety of electronic products destined for foreign markets, including smartphones, computers and tablets. Information on its production of consoles is not public, but Foxconn EV Energy & Component (Vietnam) Co, a subsidiary of the Taiwanese manufacturer, has capacity to produce up to 4 million gaming devices in a factory in Northern Vietnam, according to a company document from
RSS