When Lee Jae-yong, Chairman of Samsung Electronics, visited a fusion cake shop in a traditional market near Busan Station in late 2023, his presence unexpectedly transformed the store into a popular attraction. The shop now prominently displays a sign commemorating his visit, and customers frequently inquire about the cakes he enjoyed. Employee Shin Jae-yeon remarked, “People still ask what Chairman Lee ate in 2023 and tend to order the same cakes. His visit continues to help our sales.”
The impact of Lee’s visit is evident, as customers like Choi Hyun-jin, a housewife from Seoul, make the trip to taste the same delicacies. “I hope I can become wealthier by eating this cake,” she said, expressing her hope for a share of the success associated with the Samsung leader. “I know I will never be as rich as Chairman Lee, but I hope to receive some of that good energy and fortune.”
Chairman Lee’s Rise as a Business Leader
As Lee Jae-yong’s reputation grows, he is increasingly seen as a pivotal figure in South Korea’s business landscape. Under his leadership, Samsung affiliates have thrived, including the world’s leading memory chip manufacturer, Samsung Electronics, and the country’s top contractor, Samsung C&T. This success is reflected in the surging stock prices of these subsidiaries, significantly enhancing Lee’s personal wealth. Currently, he owns a 1.45% stake in Samsung Electronics and 20.82% in Samsung C&T. Financial data from the CXO Institute indicates that his stock values have surpassed $20 billion, making him the first South Korean businessman to achieve this milestone. The previous record, held by his late father, Lee Kun-hee, was $15.22 billion.
According to Oh Il-sun, chief of CXO Institute, “Chairman Lee’s wealth is expected to grow further as the AI boom fuels strong demand for semiconductors, benefiting Samsung Electronics.” He adds that government initiatives to support the stock market have also contributed to this success.
Overcoming Challenges and Gaining Respect
Lee Jae-yong’s journey to the top has not been without obstacles. Born in 1968, he studied history at Seoul National University and later pursued business administration at Keio University in Japan and Harvard University in the United States. In 2014, he stepped in as the de facto leader of Samsung Group following his father’s unexpected heart attack. After his father’s passing in 2020, Lee faced intense scrutiny, particularly during the political corruption scandal involving former President Park Geun-hye, leading to two imprisonments. He resumed his business activities in 2022 after receiving a presidential pardon.
Despite early setbacks, Lee has worked to restore Samsung Electronics to its former glory, especially in the competitive high bandwidth memory (HBM) market, critical for AI chips. While the company previously lagged behind rival SK hynix, it has made significant strides in developing next-generation HBM technologies, aiming to enhance its market position.
Economic commentator Kim Kyeong-joon noted, “Many people believe Chairman Lee was excessively punished,” drawing a parallel to sports, where public perception can shift dramatically based on performance. He adds that as Samsung achieves strong profits, the narrative surrounding Lee has become increasingly positive.
Another factor contributing to Lee’s improved public image is the military service of his son, who recently renounced his U.S. citizenship to serve in the South Korean Navy. This decision contrasts sharply with many heirs of Korean business leaders who have been criticized for seeking to avoid military obligations.
In summary, Lee Jae-yong has navigated a complex path to emerge as a respected business icon in South Korea. His leadership at Samsung Electronics and personal journey reflect the resilience and determination that resonate with both the public and investors.