Samsung names new head for mobile business

South Korea's top conglomerate Samsung Group on Tuesday appointed a new head for its flagship mobile business, which is struggling with falling margins amid rising competition from low-end smartphone makers and Apple Inc.

Under its annual executive-level reshuffle, Koh Dong-jin, who was previously in charge of the mobile research and development, was promoted to head Samsung Electronics Co.'s Mobile Communications Business.

Shin Jong-kyun, meanwhile, will remain as the head of the IT & Mobile Communications Division, but hand over his title as the head of the mobile business and instead "focus on the long-term business strategy," according to Samsung.

Samsung said Koh has played a key role in the development of the Galaxy S6 and the Galaxy Note 5, flagship products of the company.

"As Koh has a vision and knowledge on the development of solutions and services, such as KNOX and Samsung Pay, he is expected to lead the second leap of the mobile business," Samsung Group said in a release. 

In the third quarter, Samsung's handset shipments climbed 18 percent on-quarter to 105 million units in the third quarter, with smartphones accounting for around 80 percent, or 84 million units.

Despite the increase, however, the rising challenges from Chinese players and the portion of budget models in its portfolio led Samsung's IT & Mobile Communications Division to post an operating profit of 2.4 trillion won ($2 billion), slightly lower than the previous quarter's 2.7 trillion won.

Yoon Boo-keun will also remain as president and CEO of the tech giant's Consumer Electronics Division but will drop his dual title as the head of the Digital Appliances Business, also to "foster new growth areas."

Samsung Group also announced a personnel reshuffle for other affiliates, appointing 15 executives to new posts. The number is slightly higher than last year, when 11 executive-level officials were promoted or relocated to affiliates and business divisions across the Samsung empire.

The appointments mark the second of their kind since Lee Kun-hee, the de facto head of Samsung Group, was hospitalized in May last year after suffering a heart attack. His only son, Jae-yong, currently acts as the head of the group, but his official title is vice chairman of Samsung Electronics Co. His promotion was not included in the latest appointment. 

Industry watchers said the appointment led by Jae-yong sought stability over change amid the vacancy of his father.

"To keep Samsung's policy of respecting leaders with knowledge in technology, the promotions were given to those who led the development of key mobile and chip products," Samsung Group said.

Lee Seo-hyun, a younger sister of Jae-yong, was named the president of Samsung C&T Corp.'s fashion division. She dropped her previous dual title as the head of management strategy at Cheil Worldwide Inc., the group's advertisement arm.

The conglomerate will also announce its personnel reshuffle for non-executive staff members as well later next week. (Yonhap)