Samsung Elec replaces commanders of chip, home appliance and mobile biz

[Photo by Lee Seung-hwan]

(Updated with additional information)

Samsung Electronics on Tuesday in a stunning reshuffle replaced heads responsible for the company’s mainstay chip, consumer electronics, and smartphone operations to cut out fresher identity for Korea’s top technology company.

Vice Chairman and Co-CEO Kim Kinam of Device Solution Division who had overseen global operations of memory, system chip and foundry for more than a decade was replaced by chip design expert and Samsung Electro-Mechanics CEO Kyung Kye-hyun.

Kim was promoted to chairman of Samsung Advanced Institute of Technology with new responsibility to nurture future talents of the company.

Han Jong-hee, president of visual display business, was named as the Vice Chairman responsible for consumer electronics (CE) and IT and mobile operations (IM) whose command came under one in another key feature in Tuesday’s reorganization.

Consumer electronics and smartphone and other mobile device divisions have been integrated under a single leadership for “greater synergy” and faster response to international competition, the company said in a statement.

Chung Hyun-ho, president of business support task force who underwent judiciary hardship with Lee over bribery and other wrongdoings related to hereditary succession, was promoted to vice chairman’s status.

Choi Kyung-shik was elevated to president of CE and IT at Samsung Electronics America and Park Yong-in as the president of the System LS, or non-memory division of device solution. Park’s boss Kang In-yup moves to head U.S. chip operation at a time when the company will be executing a new $17 billion foundry project in Texas.

Samsung Electronics was expected to keep the key managerial level unchanged, but upon return from his first overseas trip to North America since August parole, Vice Chairman Jay Y. Lee told reporters last week his heart was “heavy” after witnessing the “harsh reality” in the global business environment.

Samsung Electronics also last week announced a sweeping human resource organizational overhaul to make appointments timely without regards to the years of work and age and do away with office titles to bring about horizontal work culture.

Lee who has been a vice chairman at the age of 44 since December 2012 was not promoted to chairman this year as well as he remains on a parole and is restricted in employment for prison sentence.

In a separate reshuffle, Jeon Hyoung-hyun, CEO of battery-making Samsung SDI, was promoted to vice chairman, and Choi Yoon-ho, current president, as the CEO. Jang Deok-hyun, vice president of Samsung Electronics System LSI, was promoted to replace Kyung to head Samsung Elecro-Mechanics.

Shares of Samsung Electronics ended Tuesday 1.4 percent higher at 77,200 won ($65.62).

[ㄏ Maeil Business Newspaper & mk.co.kr, All rights reserved]