Samsung replaces CEOs of 3 key business units

Three executives of Samsung Electronics were promoted to vice chairmen in the tech giant's management reshuffle, Tuesday. They are, from left, Kyung Kye-hyun of the semiconductor division, Chung Hyun-ho at the business support task force, and Han Jong-hee of the newly-created SET division that merged the home appliances and mobile phone units. Courtesy of Samsung Electronics

By Yi Whan-woo

• Published Dec 7, 2021 4:24 PM KST
• Updated Dec 8, 2021 9:56 AM KST

Tech giant's reshuffle focuses on future growth against challenges

By Yi Whan-woo

Samsung Electronics replaced the CEOs of its semiconductor, home appliances and mobile phone divisions, Tuesday, and also merged the latter two units in what is believed to be a move to accelerate future growth under Lee Jae-yong, the head of the conglomerate.

Kyung Kye-hyun, the president of Samsung Electro-Mechanics, was named to lead the semiconductor business, replacing Kim Ki-nam who was promoted to chairman of the Samsung Advanced Institute of Technology

Kyung is an expert in semiconductor design, building his career on the Samsung Electronics' Flash Product and Technology Team and also its DRAM Design Team.

“He is expected to help maintain the company's semiconductor leadership and lead innovation in the components business,” Samsung Electronics said.

Han Jong-hee, the president of the visual display section of the home appliance division, was promoted to vice chairman and will serve as CEO of the newly-created named SET division, which includes mobile phones, TVs and other consumer electronics.

Han is one of two new vice chairmen in the reshuffle involving nine executives. The merger of the home appliances and mobile phone divisions is intended to facilitate cooperation within the company's smaller units amid the blurring boundary lines of new technologies.

“By doing so, we can create synergy among the different businesses and come up with distinguished products and services for customers,” the company said, adding that Han will be capable of fulfilling the mission of nurturing future growth engines as CEO of the SET division.

Han was behind Samsung retaining the top spot in global sales of TVs for 15 consecutive years.

Chung Hyun-ho is the second new vice chairman, being promoted to the higher position at Samsung Electronics' business support task force after serving as its president from 2017.

Samsung said Chung successfully supported its mid- to long-term strategies and is anticipated to “make a bigger contribution” as vice chairman.

Other figures involved in the top management reshuffle include Park Yong-in, who is named the new System LSI Business president; Kim Soo-mok who will lead the SET division's North America office; and Kang In-yup who will head up the semiconductor division's office for North America.

This is the first management reshuffle since Samsung Electronics Vice Chairman Lee Jae-yong admitted the country's top conglomerate was facing numerous challenges in exploring its next business growth engines.

His sense of urgency was shared after one-on-one meetings with Samsung's top clients in the United States.

Specifically, Lee said Samsung was facing a harsh reality and underlined the necessity to create a vision for a “New Samsung” that included a corporate restructuring plan aimed at paving the way for young, talented workers to move up the promotion ladder faster regardless of rank and age.

“The reshuffle this time is about enhancing preparations for the future through the promotions of one chairman and two vice chairmen,” Samsung Electronics said.

It added the change of all three CEOs was a “drastic generational shift and transformation for a new era.”

The tech giant is set to give more authority to those in their 30s to 40s in an upcoming annual personnel reshuffle below C-level later this week.