Samsung has appointed convicted heir as well as de facto CEO Lee Jae-yong as executive chairman.
The strategic move means that the world’s largest smartphone manufacturer will now be led by the 3rd generation of its founding family.
Mr Lee was granted a special presidential pardon in August after being jailed for embezzlement and bribery in 2017.
He served two prison terms for bribing a past president.
“In authorizing the proposal, the Board quoted the current uncertain global economy as well as the pressing need for better accountability and business stability,” the company wrote in a statement.
The official statement formalizes Mr Lee’s, also known as Jay Y Lee, role, which he has held since 2014. After his father, the late Samsung Group chairman Lee Kun-hee, was hospitalized, he took over. He passed away in 2020.
Since 2012, the 54-year-old has served as vice chairman of Samsung Electronics, the crown jewel of South Korea’s largest business conglomerate.
Mr Lee was granted parole from a South Korean prison in August of last year after having served 207 days in prison.
It was slightly more than half of the sentence he received after being found guilty in January.
The office of then-President Moon Jae-in announced in a statement that his release was done in the country’s interest as well as asked for patience.
“We are well cognizant that there are both pro and con arguments for Vice-Chairman Jay Y Lee’s parole. Opponents’ points of view are correct as well “It stated.
The nation’s Justice Ministry stated at the time that the choice to free Mr Lee was made after considering the consequences of the covid pandemic on the economies of South Korea as well as global markets.
Mr Lee was convicted of bribery, embezzlement, as well as cover – up of criminal proceeds totaling approximately 8.6 billion won ($6 million; £5.2 million).
Ex – president Park Guen-hye was also imprisoned for corruption and bribery in the case.
Mr Lee’s granddad founded Samsung Electronics, and he has served as the corporation’s de facto CEO since 2014.
Global turbulence
The revelation comes as Samsung Electronics faces soaring challenges as the demand for its products falls as a result of rising inflation, rising interest rates, as well as bleak economic prospects.
The world’s leading manufacturer of memory chips as well as smartphones disclosed a 31% drop in 3rd quarter profit on Thursday.
It also advised that global economic uncertainty would likely lessen demand until early next year, as the worldwide recession impacted the market for electronic devices.
