Samsung Conundrum
By Kim Yoo-chul
Staff Reporter
Although Samsung Group reiterated again Friday its hope of improving corporate governance by excluding the former chairman’s children from the promotion’s lists, the question still remains ― what is the future of the apparent heir Lee Jae-yong.
Two days after South Korea’s biggest conglomerate conducted a CEO-level reshuffle, including Samsung Electronics CEO Yun Jong-yong’s departure, 223 under CEO-level officials of the group’s affiliates were promoted via a mid-scale management shakeup.
But Lee Jae-yong, who also resigned from the Chief Customer Officer position in line with his father Lee Kun-hee’s surprise resignation, maintained the current Senior Vice President position, while the former chairman’s two daughters Bu-jin, an executive of Shilla Hotels and Resorts and Seo-hyun of Cheil Industries were also excluded from the promotion.
``To increase global competitiveness and solidify the basis of next cash-cows for sustainable growth, we promoted more officials who are in charge of the group affiliates’ overseas business,’’ a group spokesperson said.
``88 officials or some 40 percent of the promotion have been tasked for research and development, meaning that Samsung Group will spur efforts to find next money sources,’’ according to the official.
Strategy for Jae-yong
Samsung’s high-ranking officials told The Korea Times that the recent shakeups well reflect the group’s efforts to nurture future areas of growth. Chief of Samsung Electronics external relations team Lee In-yong earlier said its CEO Yun’s resign means his juniors are prepared to take over to find a new momentum.
But some Samsung officials said the new CEO, Lee Yoon-woo could be a seat warmer for the former chairman’s only son and Lee will lay some groundwork for a more sustainable management system until Jae-yong completes his two or three years of ``field experience’’ in one of the Asian emerging markets.
``Samsung expanded the number of the promotion of vice presidents to senior vice presidents to 33. That means Jae-yong will easily cooperate with these younger responsible officers when he returns,’’ a senior executive of Samsung Electronics said.
The group said Jae-yong’s destination for ``field experience’’ will be announced early next week.
Speculations were running high that Lee will be tasked to find the world’s No. 1 LCD TV and chipmaker’s next money-source, capitalizing on BRICs (Brazil, Russia, India, China) regions.
``The U.S. and European markets are still big and important for us, however, these market have entered a sign of saturation,’’ another Samsung official said.
``As far as I know, Lee will check out Samsung’s current overseas businesses for management build-up without any specific titles. Lee was a strong contributor to finalize Samsung’s LCD joint venture called S-LCD,’’ the official added.
Experts say if the son can prove himself in one way or another, he will probably return home to take over as the next leader. Otherwise it might have to remain as just a major shareholder.
``Lee Yoon-woo will play a coordinating role and it will depend on Jae-yong to make Samsung Electronics into a real global electronics giant,’’ said a local analyst.
``Regardless of the overhaul, Samsung will maintain the current bullish moves from chips, handsets to LCDs,’’ he added.
Shares in Samsung Electronics has so far gained 33 percent this year.