Samsung Completes Power Shift
CEO Yun Bows Out After 12 Years at Top of Electronics Giant
By Kim Yoo-chul
Staff Reporter
Samsung Electronics Vice Chairman and CEO Yun Jong-yong yesterday ended his 12 years at the top of Korea’s leading firm, amid the ongoing shakeup triggered by legal trouble hitting its controlling family.
The group chairman has already resigned with his top lieutenant Lee Hak-soo, following a special prosecutor’s indictment.
Now the focus is how Lee Jae-yong will be reassigned, the result of which indicates how Samsung will fare for the foreseeable future.
Samsung said Yun will be replaced by senior executive Lee Yoon-woo. The new CEO was the chief of Samsung’s semiconductor division from 1996 to 2004.
Hwang Chang-gyu, who has since been head of Samsung's semiconductor business, became the company's new chief technology officer. Kwon Oh-hyun, who led the company's non-memory chip division, was named as new head of semiconductor operations.
``Over the past years, Yun has been thinking about the right time to quit the position. He made the decision by himself,’’ Lee In-yong, the head of Samsung’s external relations team told reporters in a briefing held in its headquarters in central Seoul.
Chief Technology Officer Lee Ki-tae will be asked to lead the company’s external relations, while Lim Hyung-kyu, who heads Samsung Advanced Institute of Technology, was put in charge to nurture Samsung’s next money-source.
The reshuffle was widely expected after group chairman Lee Kun-hee voluntarily stepped down in April following indictment of tax evasion.
``Yun’s resignation is quite symbolic and won’t affect Samsung’s business, significantly, however, Hwang’s departure drew attention because the operating margin of Samsung’s semiconductor division was showing healthy signs despite the bearish move in the global chip industry,’’ said a local analyst.
In the South Korean stock market, shares in Samsung Electronics closed up 0.41 percent to 738,000 won.
Since 1997, Yun has led the company and played a pivotal role in turning Samsung Electronics into a true global company, while Hwang who is well known for creating ``Hwang’s Law’’ contributed to the firm substantially pushing it to enjoy the current top status in chip making.
Attention is now focused on announcements concerning under CEO executive-level changes as possibilities were high that the destination of the group’s heir apparent, Lee Jae-yong, for field experiences will be confirmed.
``We plan to conduct another shakeup at that level possibly on Friday or early next week,’’ a high-ranking official from Samsung Electronics told The Korea Times.
The former chairman Lee Kun-hee’s only son Jae-yong was widely expected to be sent to one of the BRICs regions (Brazil, Russia, India, and China) as the group said he will work in overseas outposts under tough conditions for ``building up his market experiences.’’
``As far as I know, the son will work either in the Indian or Chinese market and planning is in the final stages,’’ another Samsung official said. He declined to comment as he was not authorized to talk with the media.