By Kim Yoo-chul
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Lee Jae-yong |
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Shin Jong-kyun Mobile division chief |
Since Chairman Lee Kun-hee is still recovering from a heart attack he suffered in May, the reshuffle is the first to be conducted under the leadership of his son, Vice Chairman Lee Jae-yong.
"We have decided to maintain the status quo for the time being," an official said in a statement.
The highlight of the reshuffle was the retention of mobile division chief Shin Jong-kyun, who some reports had predicted would be replaced because of the poor performance of the smartphone business.
Vice Chairman Kwon Oh-hyun and President Yoon Boo-keun will also stay in their posts.
"We expect the mobile business will get better under Shin's leadership," Lee Joon, head of communications at Samsung's Future Strategy Office, told reporters in a briefing.
He explained its critical consumer electronics business affiliate had no option but to pursue "stability" rather than radical changes as Chairman Lee, who makes key decisions, was still recuperating.
Now, Samsung is seeing a transition of power to Samsung Electronics Vice Chairman Lee Jae-yong.
"When the junior Lee takes over completely, then Samsung will see real changes in management," said a senior executive at a components affiliate by telephone.
Samsung Electronics only promoted three presidents, the lowest number since 2008.
"This year, the performance of Samsung Electronics and other affiliates wasn't that good," Lee Joon said.
Samsung promoted eight as new presidents last year because the company realized record revenue.
Top decision-makers at its future strategy office, including the office's chief Choi Gee-sung will also stay.
At the mobile division, three were let go — head of the division's strategy marketing Lee Don-joo, global operations chief Kim Jae-kwon and the handset development center's Lee Chul-hwan.
Lee Joon said the firm will restructure its media center, which manages the development of the firm's content and software.
The center's chief Hong Won-pyo has been transferred to global marketing, meaning that the top post is now vacant.
"The outgoing heads have taken responsibility for the continued dismal performance," said Lee.
Besides Samsung Electronics, the group replaced the CEOs of Samsung SDI, Samsung Securities and Samsung Electro-Mechanics. Samsung SDI CEO Park Sang-jin stepped back into a secondary position.
A follow-up reshuffle may come Wednesday, said a spokesman.
"Samsung-heir Lee Jae-yong made reasonable choice on the top brass at the consumer electronics giant. With minimal changes, Samsung is aiming to make a comeback," said an official.
Samsung Electronics is expected to create new units to boost business-to-business (B2B) with corporate clients and to handle futuristic projects for the Internet of Things, he added.