The grandson of the company's founder has been appointed as the company's executive chairman. On the same day that the announcement was made, a series of disappointing earnings results were released by the company.
The Board cited the current uncertain global business environment and the pressing need for stronger accountability and business stability in approving the recommendation. Memory chips, mobile phones, and TVs are some of the key businesses that are facing a slump in demand. Demand isn't expected to pick up until the second half of next year.
Lee has been the de-facto leader of the company for a long time. Lee can take bigger strategic decisions to steer the company through a turbulent economic period, including pushing through acquisitions, mergers, and investing into emerging technologies.
We are at a turning point.
Lee Kun-hee died in October 2020 and his son Lee succeeds him as head of the company. After a heart attack, Lee Kun-hee was no longer able to use his legs. The younger Lee was sent to prison twice for his involvement in a corruption and bribe scandal. The president pardoned Lee in August this year, paving the way for him to take control of the company.
Lee said in a statement that they were at a "crucial moment". Plan our next move now. We need to be bold and steadfast in our focus.
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