Biggest Personnel Change Ever at Samsung

Samsung Heavy Industries and Samsung C&T Corp. presidents promoted to vice chairmen; Samsung Electronics Pres. Choi Jee-sung takes over the Device Solution division

The Samsung Business Group has carried out its biggest reshuffle yet, replacing or promoting 25 CEOs and vice chairmen at its affiliated firms, the first massive executive change since the resignation of former chairman Lee Kun-hee last year.
Amid a swirl of switching CEOs at major affiliates of the group, Kim Jing-wan, president and CEO of Samsung Heavy Industries, and Lee Sang-dae, president and CEO of Samsung C&T Corp. were promoted to vice chairmen.
Samsung Electronics, the group's flagship company, has consolidated its four business divisions into two -- Device Solution and Digital Media & Communications. The company's mobile phone head and president Choi Gee-sung, although he was not promoted, will lead the Digital Media & Communication division for consumer electronics and mobile phones. The new Device Solution division, which will oversee semiconductors and liquid-crystal displays, will be headed by Lee Yoon-woo, vice chairman and CEO of Samsung Electronics.
The appointment of the "troika" is construed as the group's move to cope with the global economic downturn and ease organizational fatigue caused by clogged personnel management, business analysts say. The reshuffle is a signal that the group aims to elevate its heavy industries and construction units to the ranks of world-class companies, a departure from its mainstay businesses -- electronics and financing.
Vice Chairman Kim is credited with having boosted profitability with the goal of becoming a world-class shipbuilder. Vice Chairman Lee Sang-dae is praised for having built "Raemian" as the nation's representative apartment brand while heading the construction division. The reshuffle is designed to help the heavy industries unit act more aggressively with the upgraded standing of the management leadership, manned by a vice chairman and two presidents.
Vice Chairman Lee will be charged with realizing the goal of elevating the construction unit into the ranks of world-class contractors after overcoming the difficulties caused by a slump in the domestic construction market. Lee's promotion is seen as a move to shift its focus to the construction division, departing from the current business structure of driving the trading and construction divisions.
Choi is credited with having proven his marketing prowess while heading the TV and handsets division. He is praised for playing a leading role in building a foundation for the electronics maker to take the lead in the global TV market for the third straight year since 2006 when it made a sensation with the release of the "Bordeaux" model TV set. Analysts see Choi as an "ace up the sleeve" for coping with the difficulties caused by plummeting demand in Korea and abroad stemming from the effects of the slumping global economy, since he is recognized for his excellent capabilities in brand management and marketing. Yoon Boo-keun, who was promoted to president of the Samsung Electronics Visual Display division in the reshuffle, will be in charge of such duties as the sale of individual products, but Choi will take charge in the designation of strategic items, brand management and marketing strategies in such major markets as the United States and Europe.
"Younger and more innovative executives were chosen in order to overcome the present global economic crisis," the group said in a statement.
Lee Ki-tae, vice chairman in charge of Samsung Electronics' external relations, and Hwang Chang-gyu, Samsung Electronics chief technology officer, have stepped down. Lee developed Anycall, the company's mobile phone brand, and helped Samsung Electronics become the second-largest mobile-phone maker in the world. Hwang's accomplishments include developing higher capacity DRAM chips and inventing "Hwang's Law," a theory that a chip's integrated circuit capacity doubles every two years.
The position of Samsung Group chairman remains vacant. Lee Soo-bin, Samsung Life Insurance chairman, will continue as the conglomerate's external affairs spokesman.
The group said it will also cut the salaries of its executives by 10 to 20 percent to "share the burden amid the current economic crisis." nw

Lee Yoon-woo, Vice chairman & chief of Samsung Electronics Device Solution division

Lee Sang-dae, vice chairman and CEO of Samsung C& T Corp.

Kim Jing-wan, vice chairman and CEO of Samsung Heavy Industries

Choi Jee-sung, president & chief of Samsung Electronics Digital Media & Communications division

Kwon Oh-hyun, president in charge of semiconductor at Samsung Electronics Device Solution division

Park Jong-woo, president of Samsung Electro-Mechanics