Samsung, LG Relying More on Foreign Executives
By Kim Yoo-chul
Staff Reporter
A cultural shift is now under way at Samsung and LG Electronics as the chaebol are diversifying management to become truly global players.
Company officials and industry watchers say it's premature to gauge ``globalization'' solely by the number of foreign executives, given the different foci of the electronics makers; the companies are showing different approaches toward hiring more foreigners at the top levels.
Samsung Electronics, who covers all five continents as its business arena, just increased the number of foreign executives by two through a recent big management reshuffle.
Samsung's cross-town rival, LG Electronics, now has five foreign executives, including chief officers of supply chain management, marketing, and human resources.
Harvard graduate Johan Depraetere, vice president at Samsung Electronics, will be tasked mainly with handling Samsung's Europe strategies, the company spokesman said Friday.
``The number of foreign executives is not particularly significant. In most cases, Samsung promotions are entirely based on performance, regardless of sex, age and nationality,'' the spokesman said.
Since May 2003, the foreign executive has given an impressive performance in risk management at the company's overseas units, Samsung officials say.
Last August, Samsung Electronics America appointed David Steel as senior vice president of the company's North American Headquarters' marketing.
The strategic realignment comes after Samsung has been facing stalled growth in the world's biggest consumer electronics market amid decreasing demand for consumer electronics due to the lingering downturn in global economies.
David Steel was transferred to North America after 10 years at Samsung headquarters in South Korea. He worked on projects for a number of subsidiary companies under the Samsung Group umbrella.
``We dispatched him there. His main mission is to revive momentum by maintaining and strengthening ties with our bigger clients,'' another Samsung spokesman said.
For LG Electronics, the hiring of foreign executives has been in line with its CEO Nam Yong's pitch for the cultural shift for a better global image.
By the time when Nam took the top position in January 2007, LG tried to increase the number of global hit items. Nam then believed the company strongly needed more trendsetters if it was to go one step further in the Digital Age.
To shake things up, he gave full responsibility to headhunters to find top talent worldwide, regardless of nationality.
James Shad, chief officer of Go-To-Market, has been at the frontline of the company's North American marketing since last year, while former Unilever executive Reginald Bull is standardizing a global performance-based reward system of the world's No. 4 mobile phone supplier.
``Our foreign executives have been called to standardize the processes and systems that LG has developed around the world. Meanwhile, they will take some time to break into the top tier of global brands,'' an LG spokeswoman said.
Unlike Samsung, LG needs to boost its corporate image in global markets and watchers recognize such moves not as ``natural'' but ``essential.''
Samsung is the world's top maker of flat-screen TVs and semiconductors, while it trails industry leader Nokia in mobile phones.
``We'll promote foreign executives if necessary, the number of which is unimportant,'' said a high-ranking Samsung official, adding that worry over the prospect of Western executives imposing a way of thinking that might not work in Korea's Confucian culture is a different issue.