Samsung companies seek relocation under succession plan

Samsung Group is gearing up to relocate key affiliates as part of its business restructuring that has continued for its crucial leadership transition to a new generation.

The nation’s largest conglomerate has gathered its key affiliates into its fancy headquarters complex, consisting of three sky-scrapers, in Seocho-dong, Seoul, since 2008. 

According to industry sources Monday, Samsung Electronics, the group’s crown jewel, is considering moving its marketing and planning divisions to Suwon, Gyeonggi Province, where its manufacturing base is located, while sending all its developers and designers to a new neighboring R&D center.

The vacant office space is expected to be filled with financial units such as Samsung Securities and Samsung Card which have been based in Taepyeong-ro, central Seoul, for decades.

Sources considered the relocation plan one of the final steps before Samsung Electronics vice chairman and heir apparent Lee Jae-yong takes over control of the group from his ailing father.

Since 2013, Samsung has merged or sold off companies as part of business restructuring centering on two main pillars -- technology and finance. The succession plan started speeding up after chairman Lee Kun-hee was hospitalized in May last year after suffering a severe heart attack.

“The relocation plan is a key indicator of Samsung’s pending leadership transition,” said an industry source on condition of anonymity. “The neighboring property market is also heating up as the plan involves tens of thousands of employees and their families.”

Samsung C&T, the group’s de facto holding company, is also said to be considering relocating its trading and construction business divisions from the Seocho headquarters, which will retain only its control tower role.

In the meantime, Samsung Fine Chemicals, the only chemical unit left after the group sold off its chemical and defense units to Hanwha Group last year, plans to move out from Samsung’s Suwon complex, according to news reports.

In August, the company agreed with Samsung SDI to hand over its battery business and acquire the battery unit’s shares in Samsung BP Chemicals in return. The deal raised the possibility Samsung could sell off the last chemical unit.

Samsung’s former chemical affiliates, including Samsung Total and Samsung General Chemicals moved out of the Seocho office in July when their sale to Hanwha was sealed off.

A Samsung spokesperson, however, declined to confirm the relocation plan, saying nothing had been decided yet.

By Lee Ji-yoon (jylee@heraldcorp.com)