By Kim Yoo-chul
Since returning to the management helm at Samsung Electronics in February, following a two-year hiatus forced by a corruption scandal, Lee Kun-hee has been providing needed pace and purpose to the company's efforts to regain its reputation for making innovative and exciting products.
And it remains to be seen whether the chairman will be quick to trust his son, Jae-yong, the heir-apparent to the Samsung corporate throne, for a bigger role in pushing the rebuilding plan forward as he mulls another major restructuring of the Asian technology giant.
In January last year, Samsung announced a sweeping reshuffle designed to give more autonomy to key business units in an attempt to jolt innovation in its products.
According to Samsung sources, Lee is now planning to tweak the company’s corporate structure again with the objectives of attacking new rivals like Apple.
``There will be a wide range of changes in management,’’ Lee told reporters before departing to China for the Guangzhou Asian Games, just days after claiming that his company needs an injection of ``fresh blood.’’
Samsung benefits from its dual strength in parts and finished products. It is the world’s top maker of memory chips, liquid crystal displays (LCDs) and flat-screen televisions, and trails only Nokia as the No. 2 handset vendor.
A challenge for the company has been to create products that wow.
Samsung has been rebounding impressively in the market that has been its most glaring weakness ― smartphones.
In the third quarter, Samsung emerged as the world’s fourth-largest maker of smartphones with a near-9 percent share, triple its presence during the same period last year, with the popularity of the Galaxy S and other models showing that the company is finally beginning to see creative input in its high-end handsets.
Samsung is also moving quickly in another hot technology segment of tablet computers, promoting the Galaxy Tab as a smaller and smarter alternative to the Apple iPad.
Lee’s focus on creating a younger Samsung means that younger executives in their early to mid 50s will be considered as candidates for top positions, Samsung sources said.
It bears further watching whether Lee’s emphasizing of fresh blood has something to do with the plans he has for his son.
The younger Lee is currently the company’s chief operating officer (COO), a position Samsung insiders say that is virtually free from major responsibilities in business strategies, but some industry sources believe it’s only a matter of time before Jae-yong takes the chief executive officer (CEO) seat.
This would mean that the current CEO Choi Gee-sung will move to a more senior position, such as vice chairman.
``I haven’t decided anything about the promotion (of Jae-yong),’’ the chairman said.
However, another Samsung executive, who refused to be named, said that he wouldn’t be surprised to see Jae-yong getting the nod to be the next CEO.
``I have heard of such a scenario. Jae-yong is viewed favorably among executives for his ability and work ethic,’’ he said.
Jae-yong had a key role in setting up an LCD joint venture with Japan’s Sony _ S-LCD _ in Tangjeong, South Chungcheong Province, and also the company’s decision to strengthen investment in technologies for light emitting diodes (LEDs) and active matrix organic LEDs (AMOLEDs).
Yoon Boo-keun, Samsung’s current television chief, and Chang Won-kie, the LCD boss, could also see their roles expand, the Samsung official said.
``But of course it is also possible that the changes might not be that dramatic,’’ he said.
He said that any shake-up would likely materialize sometime in December, without elaborating further.
The group, which has 250,000 employees in 59 affiliates, accounts for about 20 percent of South Korea’s annual exports.