On the Run
By Kim Yoo-chul
Staff Reporter
Samsung Group’s heir apparent Lee Jae-yong is taking a job as the group’s roving ambassador of sorts to boost the group’s foothold in four key emerging markets ― Brazil, Russia, India and China (BRIC).
Lee’s latest assignment is likely to keep him abroad, after his father Lee Kun-hee ― who maintains a controlling stake in Korea’s best-known multinational giant ― resigned from the post of chairman in a power-shift amid growing public pressure that culminated with the special prosecutor’s probe.
``As far as I know, Lee Jae-yong will leave for Beijing, China later this month and stay there until the summer Olympics,’’ a high-ranking Samsung executive told The Korea Times on Thursday.
``During the Olympics, he will make efforts to increase Samsung’s brand image and after the event, Lee will fly immediately to India, where Samsung is betting its market potential,’’ the executive said, adding he will rotate the remaining spots upon situations.
Samsung insiders say Lee’s new assignment that does not have any specific title is not ``surprising’’ because the decision is a just follow-up measure to take over the top seat of the nation’s most powerful conglomerate after two or three years of field experiences.
In a mid-scale management shakeup under CEO-level officials, last week, Samsung expanded the number of vice presidents promoted to senior vice presidents to 33, in a rare move to help Jae-yong easily cooperate with these younger officers when he returns.
Meanwhile, 88 officials or 40 percent of the other promotions have been tasked with research and development in another virtual move to back Lee in speeding up efforts to find future areas of growth.
``Lee was a strong contributor to seal the joint venture deal in liquid crystal display (LCD) TVs, called S-LCD, with Sony. By meeting with high-ranking officials in BRIC’s region, he will see similar chances,’’ another Samsung executive told the paper.
Home Appliances Div. Find New Momentum
Also, Samsung Electronics has decided to combine its home appliance business with its digital media division in the latest measure to change the way the key units of the Samsung Group are operated.
``Unlike the strong moves in the digital media division, performance in our home appliances sector has stagnated as we failed to secure original technologies due to a greater focus on the TV business,’’ the executive said regarding the background of the organizational reshuffling.
Samsung is the world’s No. 1 LCD TV set maker, as well as the biggest LCD panel supplier. Its LCD TV global market share reached 20.8 percent in the first quarter since Samsung started in the TV business 36 years ago.
As this paper earlier reported, Samsung also said it will send its MP3, notebook PC and set-top box businesses to the telecommunications network division for synergy by simplifying the business structure.
Samsung’s newly pitched Blu-ray business will be transferred to the visual display division and the newly-launched co-operation bureau is to be tasked to support ways of maintaining healthy partnerships with parts suppliers.
``Samsung’s technology center will be guided by the Chief Technology Officer Hwang Chang-gyu, himself. The decision reflects our zeal to find new money sources and secure original technologies, further,’’ according to a Samsung spokesperson.
Samsung Electronics has allocated 8 trillion won solely for research and development in 2008, up from 7.2 trillion won in the previous year.
Shares in Samsung Electronics were down 5,000 won to close 713,000 won in the South Korean stock market.