Junior Lee at vanguard of Samsung’s young drive

This is the second in a series of articles regarding the effects of Samsung Electronics Chairman Lee Kun-hee’s call for sweeping changes in Korea’s largest conglomerate. ― ED.

By Kim Yoo-chul

Lee Jae-yong, chief operating officer (COO) of Samsung Electronics, is expected to be promoted to one of the presidents posts at the firm in a yearend reshuffle.

So far, Jae-yong, the only son of Chairman Lee Kun-hee, has seen his scope of action confined to “less responsible” positions. The scheduled promotion was first confirmed by Lee Kun-hee last month.

Now attention has been turned to what position the junior Lee will take ― another position as a bystander or a position that has responsibilities.

There are no clues as yet but the senior Lee’s decision to promote his son follows his repeated remarks on Samsung’s need for new blood.

Whatever position Jae-yong may take, one thing that is certain is, according to analysts and sources, the first step is being taken for the father-to-son succession at Korea’s largest conglomerate.

Other circumstantial pieces of evidence that add to this scenario is the revival of Samsung’s “control tower” ― the Strategic Planning Office (SPO) ― which was dismantled two years ago, after the senior Lee was convicted of a breach of trust involving slush funds.

Gone, according to Samsung spokesman Rhee In-yong, are two senior aides _ Lee Hak-soo and Kim In-joo. The purpose of their relegation to less important positions seems to be to pave the way for the junior Lee to bring in his confidants.

``The firm’s CEO Choi Gee-sung and Kim Soon-taek, the chief of the SPO are expected to play the role of helping the junior Lee,’’ a high-ranking Samsung executive told The Korea Times.

The 42-year-old COO first joined Samsung Electronics in 1991 after graduating from Seoul National University (SNU).

Jae-yong started as a low-level executive at Samsung Electronics’ management planning team in 2003 and was a board member of the Samsung-Sony flat-screen joint venture ― S-LCD ― in 2004.

He was promoted to chief customer officer (CCO) in January 2007 and is currently the chief operating officer (COO) at Samsung Electronics ― a vice president position.

Samsung spokesman Kenneth Hong said the younger Lee has acted as an internal advocate for customers.

The question is whether the he is ready to put his ability under public scrutiny.

Jae-yong is particularly interested in digital gadgets and mobile phones, causing speculation that his management role could be in Samsung’s telecommunication division.

Sources say he was the key man in setting up the LCD joint venture with Sony.

``As far as I know, the younger Lee has a strong interest in pushing finished products,’’ said one source.

“The junior Lee has created strategic alliances with partner companies to help bring innovative technologies to market and cooperated closely with senior management and key business divisions on customer and stakeholder initiatives,’’ Hong said.

In a statement by Samsung Group, the heir-apparent helped it establish a focus on outreaches to the global technology community, leading to a new partnerships and alliances.

``The younger Lee sharpened the company’s focus on new technologies and promoted convergence across Samsung’s divisions,’’ it said.

``Previously, Lee had failed to yield profit in pushing for `e-Samsung.’ Handling one of Samsung’s key businesses would be a good option to prove his management capability, however, it’s a `double-edged sword,’’’ said one Samsung official.

A Samsung Group spokesman said the junior Lee will be given more authority in finding and fostering next-revenue sources. By many indications, it is a safe bet for now.