Samsung names Jay Y Lee executive chairman amid global economic downturn

The 54-year-old Jay Y. Lee became the executive chairman of the company two months after receiving a presidential pardon that erased his criminal record.

Lee was released from prison last year after serving 18 months for paying a bribe to Park Geun-hye. Lee wasn't allowed to work for five years and go overseas. In August, Lee received a special presidential pardon, which allowed him to participate in the management, restore his right to work, and accelerate its decision-making on major strategies.

The death of Lee's father, the late Kun-hee Lee, in 2020 meant that Lee would become the new chairman of the tech giant.

Shrinking global demand for chips and smartphones is one of the reasons why the appointment is long anticipated. The recommendation was approved by the Board due to the current uncertain global business environment and the need for stronger accountability and business stability.

The operating profit of South Korea's largest memory chip maker fell in the third quarter from a year ago. Weak demand for consumer products, mobile phones and TVs led to a decline in earnings in the company's LSI businesses. This is the first year-on-year decline in profit for the company.

Sales of 76.78 trillion KRW ($54 billion) in the third quarter of this year were up from the year-ago period.

Demands for electronic devices and chips are expected to cover a lot in the next few years. The company said in its statement that demand is expected to rebound in the memory business after a slow first half.

Three weeks ago, the Biden administration announced new rules intended to block China from gaining access to advanced chip items. The restrictions prevent China-based chipmakers from using certain types of technology.

The United States has granted permission for leading global chip makers to use U.S. technology to sell advanced chips to Chinese companies.

Semiconductors used in laptops, phones, and data storage are sold by the company. The tech giant said earlier this month that it plans to triple the amount of advanced chips it makes. The company wants to start manufacturing chips with 2-nanometers and 1.4-nanometers in the next ten years.