Ex-execs spread ‘Samsung DNA’

Samsung executives are being increasingly pursued to inject the “Samsung DNA” into other big businesses, including rivals.

According to latest data from the Korea Exchange, more than 10 percent of the nation’s listed companies have hired former Samsung executives as CEOs.
 

Recent high-profile appointments include KT chairman Hwang Chang-kyu and SK Group vice chairman Im Hyung-kyu.

Hwang, who took office as CEO of the nation’s No. 2 telecom carrier last year, worked for Samsung Electronics serving in executive positions at the semiconductor business division.

“It is true that employees feel more pressure under his leadership,” said a KT executive on condition of anonymity. “But we have high expectations for Hwang to lead the company’s next big leap.”
 

SK Group, the nation’s third-largest conglomerate, also hired the former president of system LSI business at Samsung Electronics, as vice chairman who is in charge of the group’s international technology business. Im is working especially closely with SK hynix on its nonmemory chip business. 

The finance sector is no exception. BC Card CEO Suh Joon-hee served senior positions at Samsung’s securities and insurance units before joining the credit card firm in March last year.

Samsung’s senior executives were the driving force behind its stunning growth as a global brand over the past decades. Other businesses are therefore willing to spend big to attract them in order to learn from their business know-how and repeat Samsung’s success story.

Some experts point out that their relocation is also closely related to Samsung’s young management team.

“As chairman Lee Kun-hee’s children are taking bigger charges, the average age of CEOs at Samsung affiliates is getting younger in recent years,” said an industry source, declining to be named. “That is one of the reasons why senior executives seek new opportunities outside.”

Highest turnover rate

Even though the highly publicized relocation of senior executives proves its competitiveness in diverse areas, the high turnover rate overall is a tricky issue Samsung has to cope with.

According to a sustainability report on global top 10 companies by Toronto-based Corporate Knights, the turnover rate at Samsung Electronics stands at 10.4 percent, as compared to some 2 percent in other Korean conglomerates in the list like LG Electronics and POSCO.

Samsung hires some 8,000 new employees every year, more than other big businesses here. But at the same time, they are losing workers at a faster pace than others.

“I feel limitations to shine as an individual,” said a Samsung affiliate official in his 30s. “We are adopting a growing number of foreign nationals, but most of them fail to adjust to the company’s demanding culture.”

An executive at a head-hunting firm says Samsung needs to create a more flexible corporate culture.

“Most Samsung workers have pride in being a member of the nation’s biggest conglomerate. But they also want more recognition as an individual,” she said, wishing to be unnamed.

“Samsung should embrace the younger generation to avoid losing talented workers to foreign companies.”

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