Samsung Scion Lee Jae Yong who is widely known as Jay Y. was nominated to the board following the company's struggles with the failure of the 'Samsung Galaxy Note 7' that ended in a wide recall of the smartphone. The heir apparent has been helping run Samsung while his father Samsung Group Chairman Lee Kun-Hee has been ill since he suffered a heart attack in 2017.
This is the time that the Samsung Scion is expected to prove that he can help steer the company through the toughest crisis it had in years, Bloomberg reported. Apparently, the company was in a rush to roll out the 'Samsung Galaxy Note 7' that it skipped a major quality control test. Recent reports have shown the Note 7 phone catching fire and exploding. Samsung has already lost $22 billion market value in over two days.
The Samsung Scion is expected to make a move fast since airlines, regulators, and even Samsung have already called on users of the device to return their devices without charges. Those who want to exchange their Note 7 with other Samsung phones can do so for a small fee. Those who prefer to stick with so-called Samsung's best phablet may have to wait until Sept.19 to get Note 7s with new batteries.
The Samsung Scion is already set to take a board seat. Meanwhile, shares of the tech giant Samsung Electronics Co Ltd have already opened higher, getting back some losses following news that the Samsung Scion was to join the board, Yahoo Tech reported. The company's shares went up by 2.5 percent as of 0002 GMT, rising from a 7 percent fall on Monday and getting a 1 percent gain for the broader market. The scion's move to take a board seat at the company is expected to improve transparency and corporate governance for the company.
Samsung brings 'Jay Y.' to its board as Galaxy Note 7 crisis boils over