Vice Chairman Lee Jae-yong after quarantine in prison… Will Samsung Electronics’ investment decisions accelerate?

Input 2021.02.16 09:53 | Revision 2021.02.16 10:12

Lee Jae-yong, sentenced to 2 years and 6 months in prison last month at the court of remand for the destruction of the Gukjeong Nongdan case Samsung Electronics (005930)The vice chairman completed four weeks of quarantine according to the corona response guidelines. As Vice Chairman Lee’s interview with the public will be available from the 17th, it is expected that Samsung Electronics’ investment and other decision-making will accelerate.

According to law enforcement officials on the 16th, Vice-Chairman Lee, who was imprisoned in the Seoul Detention Center on the 18th of last month, was quarantined for 4 weeks and moved to a general detention room on the 15th. During this period, Vice Chairman Lee was only able to interview his attorney, and even Lee, according to the Corona Response Guidelines, spoke with a microphone in a space enclosed with glass partitions. This time, as Vice-Chairman Lee’s quarantine has been lifted, face-to-face visits to the public will be allowed from the 17th.

As Vice-Chairman Lee and Samsung Electronics’ management will be able to meet, the decision-making on Samsung Electronics’ management issues is expected to accelerate. It is observed that in the business world, Vice Chairman Lee will meet with executives such as Hyun-Ho Jeong, President of Samsung Electronics Business Support Task Force (TF) and Ki-nam Kim, Vice Chairman of Device Solutions (DS).

Currently, the biggest issue for Samsung Electronics is the decision to invest in semiconductors. Samsung Electronics is currently facing the start of construction of the 3rd line in Pyeongtaek and a large-scale investment decision in Austin, USA.

Pyeongtaek Line 3 is currently undergoing full-fledged frame construction, and the investment is expected to exceed 30 trillion won. Samsung Electronics is also pursuing the establishment of a new semiconductor plant in the US, and for this purpose, incentives for investment are being discussed in Austin, Texas, Arizona, and New York, where foundry plants are currently located.

Recently, TSMC in Taiwan revealed its plan to invest 31 trillion won, and Intel is considering outsourcing foundry (consigned semiconductor production) for some semiconductors. Samsung Electronics (005930)You also have to make an additional investment decision. In the business world, Vice Chairman Lee, who is incarcerated, is expected to refine the investment plan through interviews with management.

With family visits such as Hong Ra-hee, former director of Leeum Museum of Art, and the start of family visits, the issue of the late Chairman Lee Kun-hee’s property inheritance is expected to end. Vice-Chairman Lee’s inheritance tax is due until April. In the meantime, it is necessary to determine a plan for evaluating inheritance properties such as stocks, real estate and art works, distributing property and stocks among bereaved families, and financing inheritance tax, which is expected to exceed 12 trillion won.