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| Samsung Heavy Industries Vice Chairman Choi Sung-an / Courtesy of Samsung Heavy Industries |
Choi Sung-an, the new co-CEO of Samsung Heavy Industries, became the first executive at the conglomerate to be promoted to vice chairman since Chairman Lee Jae-yong's ascent last October, indicating Lee's intention to restore the competitiveness of the group's shipbuilding and construction units.
Chairman Lee's recent visit to the Middle East is also being interpreted as part of the group's efforts to revive its engineering, procurement and construction (EPC) businesses led by Samsung Heavy, Samsung C&T and Samsung Engineering, which were considered less important than the group's semiconductor, mobile device, display and battery businesses.
According to Samsung Heavy, Sunday, Choi was appointed last Wednesday to lead the shipbuilder along with incumbent CEO Jung Jin-taek. This is the first time in 13 years for Samsung Heavy to have a vice chairman-level CEO.
Samsung Heavy suffered cumulative losses over the past seven years, prompting some market observers to even anticipate that Samsung Group would put its money-losing shipbuilding unit up for sale in the near future.
The shipbuilder will probably post another annual deficit this year, as its operating loss during the first three quarters of 2022 reached 518.6 billion won ($398 million).
Considering Choi's track record of halting losses at Samsung Engineering by focusing more on winning orders for lucrative projects, he seems to have been tasked with trying to enable Samsung Heavy's turnaround next year by taking advantage of the recent shipbuilding industry boom.
"While serving as the Samsung Engineering CEO over the past five years, the vice chairman was recognized for leading the company's growth through ceaseless innovation," Samsung Heavy said in a press release. "He is expected to contribute to enhancing our competitiveness."
As Lee hinted at supporting the shipbuilder, observers are also wondering whether he will pay a visit for the first time in seven years to the company's shipyard on Geoje Island in South Gyeongsang Province.
Since he was given a special presidential pardon in August, Lee has toured multiple Samsung Group affiliates here and overseas, including Samsung Electronics, Samsung SDS and Samsung Engineering.
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| Samsung Electronics Chairman Lee Jae-yong, second from left, inspects Samsung C&T's Barakah nuclear power plant construction site in the United Arab Emirates, Tuesday (local time). Courtesy of Samsung Electronics |
In particular, Lee picked Samsung C&T's Barakah nuclear power plant construction site in the United Arab Emirates as the destination for his first business trip abroad since being promoted.
"The Middle East, which is pursuing a great change to find a new growth engine, is a land of opportunity," he said during the trip last Tuesday. "Despite the difficult situation, let's take a bold and challenging step forward."
Samsung's construction unit is also participating in Neom, Saudi Arabia's smart city construction project led by Crown Prince Mohammed bin Salman, who met with Lee during his visit to Korea last month.
Industry officials, therefore, expect the Samsung chairman to continue supporting the group's affiliates in charge of the EPC businesses, in order to benefit from the construction industry boom in the Middle East.
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