South Korean electronics giant Samsung has named convicted heir and de facto boss Lee Jae-yong as its executive chairman.
The symbolic move means that the world’s largest smartphone maker will now officially be run by the third generation of its founding family.
Mr Lee, who was convicted of bribery and embezzlement in 2017, was granted a special presidential pardon in August.
The former president was imprisoned twice for bribery.
“The board cited the current uncertain global business environment and the need for strong accountability and business stability in approving the recommendation,” the company said in a statement.
The announcement formalizes the role Mr Lee – also known as JY Lee – has held since 2014. He took over after his father, the late Samsung Group chairman Lee Kun-hee, was hospitalized. He passed away in 2020.
The 54-year-old has been the vice chairman of South Korea’s largest enterprise Samsung Electronics since 2012.
In August last year, Mr Lee was released from a South Korean prison on parole after serving 207 days in prison.
It was more than half the sentence he received after being convicted in January.
In a statement, then-President Moon Jae-in’s office said his release was in the national interest and asked for understanding.
“We are well aware that there are pro and con views on the parole of Vice Chairman JY Lee. The views of those who are opposing are also valid,” he said.
At the time, the country’s justice ministry said it had decided to release Mr. Lee after considering the impact of the pandemic on South Korea’s economy and global markets.
A year later, he was pardoned by the new president Yoon Suk-yeol.
Mr Lee was found guilty of bribery, embezzlement and concealing criminal proceeds of about 8.6 billion won ($6m; £5.2m).
The case also involved the country’s former president Park Geun-hye, who was jailed on charges of bribery and corruption.
Samsung Electronics was founded by Mr Lee’s grandfather and has been the original chairman of the company since 2014.
Global Headwinds
Today’s announcement comes at a time when Samsung Electronics is facing mounting problems as rising inflation, rising interest rates and a depressed economic landscape dampen demand for its products.
On Thursday, the world’s largest maker of memory chips and smartphones reported a 31 percent drop in its third-quarter profit.
It also warned that uncertainty around the world is likely to dampen demand until early next year, as the global economic downturn affects the electronic equipment market.
