[Photo by Yoo Dae-gil]
Samsung Electronics carried out a revamp in top decision-making posts to form a new leadership run by professional managers who would lead the world's largest smartphone and microchip producer probably until the release of its de facto head from prison.
Samsung Electronics Vice Chairman Jay Y. Lee is still on trial for bribery and other charges after being linked to a scandal that led to the ouster of ex-president Park Geun-hye. The son of Samsung's bed-ridden group head Lee Kun-hee was given a five-year prison sentence in August.
As Lee's imprisonment is expected to last for at least a year since his arrest on February 17, jitters are growing in South Korea's business community about Samsung's global competitiveness. Professional managers have settled into the structure of each Samsung affiliate, but Lee has exercised a broad influence on strategic issues.
"The change in personnel will revitalize our organization and provide an opportunity to actively respond to the uncertain business environment," Samsung said in a statement, quelling speculation about any major group-wide revamp.
The change was made after the resignation Tuesday of President Yoon Boo-keun, who headed Samsung's consumer electronics division, and President Shin Jong-kyun who led the mobile division covering smartphones. Three presidents were promoted to replace them for the smooth and gradual transfer of leadership.
President Kim Ki-nam was promoted to lead Samsung's microchip sector, and President Kim Hyun-suk will head the consumer electronics division. President Koh Dong-jin was made head of the IT and mobile division.
President Lee Sang-hoon will step down as chief financial officer, but he will succeed Kwon Oh-hyun as chairman of the board in March next year. Kwon, 64, who has played a crucial role in South Korea's semiconductor industry, announced his sudden resignation on October 13.
Kwon has led the group on behalf of Samsung Electronics Vice Chairman Jay Y. Lee, who is on trial for bribery and other charges after being linked to a scandal that led to the ouster of ex-president Park Geun-hye. The son of Samsung's bed-ridden group head Lee Kun-hee was given a five-year prison sentence in August.
As Lee's imprisonment is expected to last for at least a year since his arrest on February 17, jitters are growing in South Korea's business community about Samsung's global competitiveness. Professional managers have settled into the structure of each Samsung affiliate, but the group chief has exercised a broad influence on strategic group-wide issues.
Tuesday's reshuffle coincided with Samsung's report on corporate earnings. Helped by brisk chip sales, Samsung's third-quarter net profit soared to 11.1 trillion won (9.86 billion US dollars) from 4.53 trillion won a year earlier. Operating profit rose 12.5 percent to 14.53 trillion won and sales jumped 29.7 percent to 62 trillion won.
In the third quarter, Samsung's chip business posted a record operating profit of 9.96 trillion won. The IT and Mobile Communications division posted a third-quarter operating profit of 3.29 trillion won, compared to 4.06 trillion a quarter earlier and 100 billion won a year earlier when Samsung recalled its combustible Galaxy Note 7s.
In its smartphone business, Samsung forecast a good performance in the fourth quarter, citing the popularity of its Galaxy Note 8 and robust sales of the Galaxy J series. However, the company predicted tough competition in in high-end products.
reporter
Lim Chang-won
cwlim34@ajunews.com
