Samsung Group is expected to carry out a modest promotion of executives this week, reflecting a sense of crisis prevalent across its affiliates, industry sources said Monday.
Samsung Electronics vice chairman and the group’s heir apparent Lee Jae-yong is also unlikely to take office as chairman to focus more on improving the profitability of the flagship electronics unit and other key companies.
“Many executives do not expect to receive promotions this year. They just want to stay,” said a Samsung executive on condition of anonymity. “Most affiliates will see fewer executive promotions than ever.”
Samsung will announce the personnel transfers and promotions in an annual reshuffle this week -- CEOs on Tuesday and executives on Friday. An announcement on business reorganization is also planned on Dec. 10.
The nation’s largest conglomerate has reduced the number of executive promotions since the tally peaked at 501 in 2011. Sources predicted an almost 20 percent cut in the number this year from last year’s 353.
Many industry watchers predicted no drastic changes in the top brass, considering chairman Lee Kun-hee has been hospitalized since May last year.
But they agreed some changes seemed unavoidable at Samsung Electronics, the group’s crown jewel that has struggled with slowing sales outside of its soaring chip-making division.
Of the three co-CEOs, Kwon Oh-hyun, who has led the chip division, could get promoted, while the fates of the other two -- home appliance chief Yoo Boo-keun and mobile chief Shin Jong-kyun -- were uncertain, considering their terms expire in March.
