Samsung makes huge investments to rebuild its credibility in South Korea

Samsung’s brand image took a huge hit in Korea when the company’s heir apparent Lee Jae-yong got arrested in 2017 in a high-profile corruption scandal involving, among others, the former South Korean President Park Geun-hye. Though Lee is finally out from jail after an intense legal battle that resulted in the suspension of his sentence, it is not enough for the company to restore its reputation in the country.

According to a report in Yonhap News, Samsung is undertaking a major investment project worth 180 trillion won (US$160 billion) as part of company’s strategy to rebuild its credibility in South Korea. This larger than expected investment includes the hiring of 40,000 new employees by the company.

Hiring more people

Prior to this, Samsung Electronics Services arm had announced in April that it would take 8,000 workers from its subcontractors as employees. The company also entered into an agreement in a long-standing dispute over compensation for its factory workers suffering from diseases. Industry analysts are seeing all of these efforts from Samsung as attempts to repair its tainted image in the country.

Since his release from prison in February, Lee has kept a low profile without making public appearances. He undertook trips to meet with various business leaders and explore opportunities in emerging fields. Lee also apparently met with Korean government officials to improve the working relationship between the two. Making his first major public appearance, he shared the stage with the current South Korean President Moon Jae-in in India when Samsung inaugurated the world’s largest mobile factory last month.

Naresh Nekkanti

General Lee Jae-yong South Korea