Is Samsungs New IR Man Up to Job?
By Kim Yoo-chul
Staff Reporter
Samsung Electronics has changed its face for investors worldwide in a recent sweeping executive shakeup.
A deputy of the former Samsung mouthpiece has taken over and made his first appearance as the top Samsung investor relations (IR) man, with mixed results.
With Samsung facing a market downturn, the new IR head is expected to undergo tough times. Can he make it and stick with the job or will he step aside for another man to step in?
The answer will affect Korea's top global firm.
Robert Yi began the top job after veteran IR officer Chu Woo-sik moved to Samsung Securities in a recent management reshuffle.
Analysts and industry watchers say Yi's top priority is to make and send "consistent messages" to investors amid falling profits hit by the bad economy.
"It seems too early to comment on his communication style in terms of consistency," an analyst at Hyundai Securities told The Korea Times, Friday, asking not to be identified.
In a briefing over fourth quarter earnings held at the company's headquarters in Seocho-dong, southern Seoul, last week, the new IR officer declined to comment when asked about detailed investment plans for 2009.
"Should Samsung unveil management plans, as uncertainties are unexpectedly high in the global market?" Yi asked some 100 Korean and foreign journalists.
"I can say Samsung plans to actively respond to the unfavorable situation."
His remarks led to mixed responses. Samsung reported a net loss of 22.2 billion for the fourth quarter. The loss was the company's first since it began disclosing quarterly results in 2000.
"Samsung doesn't need to be in a rush to say anything about its investment plan. Investors would be shocked if Samsung didn't meet its stated target," an analyst at Goodmorning Shinhan Securities said.
A Samsung spokesman said Yi would play the role of interim caretaker until a senior official takes over.
Since 2000, former IR Chief and Executive Vice President Chu Woo-sik had been in charge of investor relations.
"Although he was sometimes criticized for fence-sitting, investors read Samsung's plans on the basis of his remarks," a Samsung official said.
"I can say his position doesn't matter. Unlike Chu, Yi is expected to be conservative," the official added.
Amid falling demand for electronic components and products, Samsung Electronics has launched an all-out restructuring effort that is shaking up head office and top-down corporate culture.
"Yi will contribute his personal style as he gains more experience. Considering his personality, the IR chief is forecast not to shock investors by sending unprepared 'sensitive messages'," another Samsung official said.