Samsung Group promoted Samsung Electronics’ device solutions chief Kwon Oh-hyun to company vice chairman in a management reshuffle at its affiliates Wednesday.
Kwon’s promotion demonstrates chairman Lee Kun-hee’s intention to lead the electronic giant under a “two-top system” in which top management roles will be shared by two powerful vice chairmen, Samsung officials said.
Kwon, who was previously the president of device solutions at Samsung Electronics, will work together with Samsung Electronics chief executive and vice chairman Choi Gee-sung, who is also the mentor of Lee’s heir apparent, Lee Jae-yong.
Samsung China vice chairman Kang Ho-moon was repositioned as another vice chairman of Samsung Electronics, but in a less central role. Kang will be in charge of external cooperation affairs, taking over the role of vice chairman Lee Yoon-woo, who was named adviser to the company.
Jung Yeon-joo, president and chief executive officer of Samsung C&T, was also promoted to C&T’s vice chairman and CEO.
Samsung Electronics has been under the control of its CEO Choi Gee-sung for two years ever since the two-top system of Lee Yoon-woo and Choi was halted back in late 2009.
The reestablishment of a two-top system means that Samsung is giving more power to its subpart divisions such as its semiconductor and LCD businesses, enabling related divisions to make more challenging decisions at a faster pace, with Kwon gaining more influence within the firm.
With unfavorable business conditions in the light-emitting diode market, Samsung LED ― a joint venture between Samsung Electronics and Samsung Electro-Mechanics ― is also projected to merge with the group’s electronics unit and the merger with Samsung Mobile Display in the long term is also a high possibility. Kwon will take charge of such units in case of a merger.
On the other hand, Kwon’s partner and contender Choi will be responsible for the electronics unit’s finished goods such as TV sets and mobile phones.
“It’s an indicator for the team of Electronics’ vice chairmen to go for new innovations as well as bigger changes with the creative energy introduced by the newly-promoted leaders,” said Samsung chief public relations officer Rhee In-yong in a press briefing.
However, it has yet to be decided whether Choi and Lee will both be named chief executives of the company, according to Rhee.
Other than the promotion of two vice chairmen, the group’s annual personnel move also named six new presidents and repositioned nine, including vice chairman Kang Ho-moon.
Among the new presidents, Lee Chul-hwan was appointed president of the mobile communications business and Kim Bong-yung, senior executive vice president of Samsung SDS, was named CEO of Samsung Everland.
Chang Won-kie, former chief of Samsung Electronics’ LCD division, who was stripped of his position earlier this year, was named head of Samsung China.
The reseating of Chang, who is expected to take control of the firm’s LCD business in China, is considered a rare move for the country’s largest conglomerate, giving him a second chance for a comeback.
Kim Jae-youl, president of management planning division at Cheil Industries who is also the husband of Lee Kun-hee’s youngest daughter Seo-hyun, was named president of the management planning division at Samsung Engineering.
The conglomerate’s year-end reshuffle, however, did not include any promotion of female executives with the company. The group said it would continue to nurture its female workforce although none were named presidents for next year.
By Cho Ji-hyun(
sharon@heraldcorp.com)
