Samsung trying to get younger

Chairman Lee repeatedly hints at youth-oriented transformation

By Kim Yoo-chul

Samsung Electronics is aging and obviously prodded by the creative onslaught of rival Apple with its flashy iPhone, iPad and iPod, the solution is to inject a bit of rejuvenating energy into the system.

Indications for Samsung's transformation are coming from its Chairman Lee Kun-hee.

However, it remains to be seen how far-fetching Lee's latest initiative will be ― either limited to products or a generational change at the top of the conglomerate?

"Considering the business circumstances of the 21st century, youth is pivotal," Lee Kun-hee said upon his arrival to Gimpo International Airport from Mexico, last week.

"Youth will help Samsung make faster judgments in order to get ahead and keep ahead," Lee said.

"Besides, young people are more adaptable to new cultures and changing surroundings."

Lee’s reference leaves the impression that a big management shake-up might be in store for Samsung next year.

Some say that even if any change falls short of a generational shift, it could involve drastic soul-searching that will affect Samsung’s direction.

Samsung Electronics has been noted for its adherence to the performance-oriented reward system.

Thus, age hasn’t so far been considered as a critical factor for promotion to top-tier levels.

As a matter of fact, Samsung formerly sent ``Mr. Semiconductor’’ Hwang Chang-gyu and ``Mr. Anycall’’ Lee Ki-tae packing in early 2009, when their performance was lackluster.

Samsung officials are skeptical about any drastic change in personnel.

"Any immediate change will be limited in scope," said a Samsung official, asking not to be identified.

According to the data from Korea CXO Institute, a market researcher, Korea Inc. executives who were born in the 1960s and educated with technological backgrounds accounted for over 60 percent of the total.

In last year's management reshuffle, Samsung increased the number of its second-tier executives, most of whom are aged between 40 and 47 with tech-oriented backgrounds.

Lee Jae-yong to handle key biz?

Still Lee's remarks are interpreted in connection with his heir apparent and only son Jae-yong.

The junior Lee, born in 1968, joined Samsung Electronics in 1991. After taking the position as a chief customer officer (CCO) position in 2007, the junior is now a chief operating officer (COO) after being promoted in December 2009.

``The junior Lee has been waiting in the wings for a chance to show his mettle at a CEO level,’’ said an official on the condition of anonymity.

"Will he be promoted? That is something to pay keen attention to later this year when a regular reshuffling is scheduled." The senior Lee is 68 years old.

A Samsung Electronics spokesman declined to comment and so did a Samsung Group spokesman.

Sources have said Samsung CEO Choi Gee-sung, the younger Lee's mentor, may be promoted to the vice chairman position.

But Chairman Lee, as usual, did not elaborate about what he meant by his reference to youth. But one thing that is almost certain is that Lee is feeling a looming threat when looking at the rapid growth of such firms as Apple.

``The biggest challenge is how Samsung will overcome the gap in philosophy with Apple-like firms,” a Samsung executive said, explaining that at Apple, creativity is a matter of life, while in Samsung the motto is faster, better and cheaper.