The Korea Times

Daughter rises amid Samsung reshuffle

Competition for chairmanship begins among Samsung scions By Kim Yoo-chul The latest management reshuffle by Samsung Group has gained special attention from market investors as it not only suggests the beginning of Samsung’s third-generation era but also signals the prelude of a fierce rivalry among the group’s family scions for the group chairmanship. Market watchers say that the competition for the chairmanship of the nation’s largest conglomerate has just begun, after the eldest daughter of Samsung Electronics Chairman was promoted two notches to president-level in last week’s management reshuffle. As expected, the chairman Lee Kun-hee’s only son _ Jae-yong _ was promoted to be the president of Samsung Electronics. The 42-year-old Lee will keep his role as the chief operating officer (COO) and be tasked to search for future growth engines for the group. But what’s more interesting about the recent reshuffling was the ``exceptional promotion’’ of the senior Lee’s eldest daughter _ Boo-jin _ to president and CEO of the Hotel Shilla affiliate and the president of th

Dec 5, 2010By Kim Yoo-chul

Companies

What is Samsung’s brave new world like?

Promotion intended to give heir Jae-yong more limelight but see him spared from heat By Kim Yoo-chul There can be little debate that Samsung Electronics is currently untouchable in the component businesses of memory chips and flat-screens. For decades Samsung has boosted its corporate awareness by selling parts used in most digital devices to consumer electronics majors including Apple, Dell and Hewlett- Packard (HP). But its heavy dependence on the cyclical and volatile businesses is commonly referred as a “critical factor,” or the “Samsung Discount.” Fighting this is a self-imposed mission by Samsung Electronics Chairman Lee Kun-hee, who is promoting his children in order to bring youth to the operation, while diversifying its business portfolios. A pattern has emerged from his remarks since his return to the management of the group as the flagship’s chairman since March. Lee’s first declaration was “Samsung is in real crisis.” An executive said that this declaration affected its key products. “I can say the Galaxy S smartphone has a quite symbolic meaning,

Dec 3, 2010By Kim Yoo-chul

People & Events

Samsung exec awarded for online communication

By Kim Yoo-chul Samsung Electronics said it has been injecting more resources to ``communicate better’’ with internal and external communities in a transformational efforts for ``creative branding,’’ a senior company executive said. Such strategy shifts come amid the popularity of social network services or SNSs such as Facebook and Twitter that focus on building and reflecting networks of social relations among people who share interests or activities. ``General consumers are active in the participation of corporate activities. Without understanding what consumers want, it is difficult to increase revenue,’’ said Han Kwang-sup, a senior vice president at Samsung Electronics, Friday. Han received an award given to Samsung by the Korea Internet Communication Association (KICA) for online communication. The ceremony was held at the Press Center, downtown Seoul. Samsung has so far been known for a ``one way communication’’ system as its decision-making styles were top-down under the strong hierarchy seen in most of the nation’s leading conglomerates. But Han said Sams

Dec 3, 2010By Kim Yoo-chul

Companies

Apple’s case of discrimination in Korea

By Kim Yoo-chul Apple is often under fire for inadequate after-sale services. Now will the Cupertino, Calif.-based consumer electronics company improve with the launch of its tablet computer iPad? iPads come with the standard one-year AppleCare plan in Korea. But Apple is planning to give two-year warranties in China. Korean customers can extend both the one-year repair warranty by another year for an additional $99. After two years, they will be on their own, paying as charged for battery changes at $106, for instance. ``Apple is asking Korean iPad users to directly pay for repair and parts changes,’’ said a senior official at the Korea Communications Commission (KCC). “We see it desirable for Apple to extend the period for free or subsidized services.” iPad users will have to buy pricey “refurbished” devices after the one-year warranty expires, in the event of loss or breakdown. Previously, Korean lawmakers had taken issue with Apple’s policy that gives complaining that Korean iPhone holders refurbished devices” rather than allowing them to opt for either fr

Dec 2, 2010By Kim Yoo-chul

Companies

Printer maker Xerox raising profile here

By Kim Yoo-chul Fuji Xerox, a leading printer manufacturer, is aiming for a bigger share of the nation’s printer market with the launch of its latest budget models. Fuji’s printer and multifunction business has so far traditionally concentrated on devices mostly aimed at mid-range and high-end markets only. Officials say the release of the entry-level printers is part of a strategy to expand business from the ``value market’’ to the ``volume market,’’ where users demand high print quality, ease of use and eco-friendliness. In line with this new business shift, it has introduced six DocuPrint laser printers ranging from single-function monochrome machines to multifunction color offerings. These will be based on S-LED (self-scanning light-emitting diode) technology, formerly found only in its premium office machines. The company said the use of S-LED with other proprietary technologies will make it possible for its range of printers to provide high reliability and strengthened performance, while maintaining a small footprint and low cost of ownership. In a technical ter

Dec 2, 2010By Kim Yoo-chul

Companies

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

Dec 1, 2010By Kim Yoo-chul

Tech & Science

Samsung cuts LCD output amid downturn

By Kim Yoo-chul Samsung Electronics, the world’s top supplier of LCD panels, said it has reduced its production by 7 percent amid falling prices and sluggish demand for devices that use large-sized panels. This is the first time in two years that the electronics giant has joined an industry wide reduction in LCD output. In October 2008, then Samsung LCD chief Lee Sang-wan lowered output by 5 percent amid the global economic crisis. ``Samsung has already begun cutting production since September amid few signs of a price turnaround and massive stockpiles,’’ a top-ranking industry executive told The Korea Times in a phone interview, Tuesday. With the output reduction, Samsung’s factories have been operating at 92 to 93 percent capacity, which the executive said is expected to last through the end of the year. A senior Samsung spokesman said the company was controlling production to respond to market conditions but refused to elaborate further. According to data from DisplaySearch, a market research firm, Samsung cut its panel output used in televisions to 4.3 mill

Nov 30, 2010By Kim Yoo-chul

Tech & Science

LG to push for organizational reform

Koo to sack foreign executives to rebuild organization By Kim Yoo-chul LG Electronics said Tuesday that it will streamline its organization by slimming down its business unit and replacing all top five foreign executives with Korean nationals as part of massive restructuring efforts. Under the ``shock treatment,’’ its business solutions (BS) unit will be dismantled, with the number of divisions reduced to four from five. The surviving units are home appliances, air-conditioning and energy solutions (AE), home entertainment and mobile communications. In a noticeable move, the AE division is expected to get more of a role as the consumer electronics company is aggressively looking to strengthen its lighting- and solar-related businesses what LG claims are its ``next revenue engines.’’ In line with the new strategy, its global marketing team led by the former TV chief Kang Shin-ik will directly handle procurement, supply-chain management, branding and overseas sales, LG said in a statement. In a follow-up measure to help LG regain its strength in its important handset

Nov 30, 2010By Kim Yoo-chul

Tech & Science

Hynix seeks to boost China investment

By Kim Yoo-chul Hynix Semiconductor, the world’s second-biggest maker of dynamic random access memory (DRAM) chips is seeking to boost its presence in China by fulfilling its role as a corporate citizen there. The chipmaker is experiencing a slowdown in the fourth quarter due to a drop in operating profit coupled with a cyclical downturn and falling prices; however, it plans to bounce back through its China plant by investing more in value-added products. It is common for Korean exporters to have their manufacturing bases outside the peninsula, which sometimes leads to a performance due to cultural differences. But, Hynix has relieved itself off such concerns by applying customized strategies and spending more to create employee-friendly workplaces with good accommodation and competitive incentives. ``Hynix’s plant in China has successfully positioned itself as a localized company in the shortest time. Based on trust in its employees, Hynix plans to inject resources to produce advanced chips with thinner technologies,’’ said Lee Jae-woo, the president of its Chinese af

Nov 29, 2010By Kim Yoo-chul

Tech & Science

LG mulls response to patents lawsuit

By Kim Yoo-chul LG Electronics and Pantech are looking into what action they can take against patent lawsuits filed against them Saturday by the California Institute of Technology (Caltech) in the United States for infringing on patents rights of its camera-related technologies. ``Our legal team has just begun reviewing the case. But it’s premature to talk about monetary compensation,’’ said a high-ranking LG executive, who is directly involved in the matter, in a phone interview with The Korea Times, Sunday. ``Since we need a thorough review on the case, the official reaction will not come out immediately. But we will respond soon,’’ added the executive, asking not to be identified. The university claims LG and Pantech infringed on nine patents relating to camera technologies. Caltech filed a complaint with a federal court in Los Angeles. Alongside the South Koreans, handset giant Nokia was also a target. The university based in Pasadena, California, was seeking monetary compensation for what it claims is ``willful infringement.’’ Pantech has also started reviewing

Nov 28, 2010By Kim Yoo-chul

Kim Yoo-chul

Read more

Daughter rises amid Samsung reshuffle

What is Samsung’s brave new world like?

Samsung exec awarded for online communication

Apple’s case of discrimination in Korea

Printer maker Xerox raising profile here

Junior Lee at vanguard of Samsung’s young drive

Samsung cuts LCD output amid downturn

LG to push for organizational reform

Hynix seeks to boost China investment

LG mulls response to patents lawsuit

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