Samsung Electronics Co. Vice Chairman Jay Y. Lee, who will become the legal head of South Korea’s largest conglomerate and household company, flew to Silicon Valley in the United States over the weekend in a move to hasten recovery of the reputation of the company and the group facing unprecedented challenges.

According to sources in the industry Sunday, Lee chose Silicon Valley as the first meeting venue since he declared to take formal responsibility as a board member in important decisions for both symbolic and practical reasons. The meeting was said to be attended by chief executives and senior officials from the company’s Mobile Communications Business in Korea and major US operations. In Silicon Valley, Samsung has Samsung Strategy and Innovation Center (SSIC), Global Innovation Center (GIC) and Samsung Research America (SRA).

SSIC, led by Young Sohn, is Samsung’s component business that focuses on investing and developing new technologies, in particular, the Internet of Things (IoT) and health care. GIC, headed by David Eun, has spearheaded a number of acquisitions including Viv Labs Inc. in pursuit of open artificial intelligence platform and LoopPay, the U.S.-based mobile wallet solutions provider. SRA, led by Kim Yong-je, focuses on developing biometric identification technologies including finger print recognition solution incorporated in the Samsung Pay. Samsung in June announced its plan to spend $1.2 billion in U.S.-centered IoT R&D and investments through the three institutes over the next four years.

According to sources, Lee, Samsung’s de facto chief on behalf of his bedridden father, was briefed in the meeting about post-Galaxy Note7 recall status, market responses and counter strategies in the United States. He also reportedly discussed with local executives about possible mergers and acquisitions (M&A) of diverse businesses. He is expected to meet chief executives at Google Inc. and Facebook, both headquartered in Silicon Valley, during his visit this time.

His visit to the world’s leading hub for high-tech comes after the meetings with other big names last month - India’s Prime Minister Narendra Modi on September 15, Dutch Prime Minister Mark Rutte on 27th and Softbank Group Corp. Chief Executive Masayoshi Son on 29.

The world’s largest smartphone maker has been grappling with the Galaxy Note 7 crisis that has resulted in the company’s first and largest-ever recall program due to the battery defects that have caused fire on devices. The crisis has deepened following reports that even replacement devices have caught fire.

The company’s board will nominate Lee as a registered member in an extraordinary shareholders meeting on October 27 in a symbolic endorsement of the 48-year-old heir of the Samsung founding family as the leader and successor of Samsung Group.

By Sohn Jae-gwon and Lee Seung-hoon

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