Samsung and LG Facing Imminent Regular Personnel Changes... Likely to Emphasize 'Stability'

LG Expected to Announce Regular Personnel Changes Late This Month, Samsung Anticipated Next Month

[Image source=Yonhap News]

[Asia Economy Reporter Changhwan Lee] As year-end regular personnel appointments at electronics companies such as Samsung Group and LG Group are approaching, the business community's interest in the scale of these appointments is growing. Despite the adverse effects of the novel coronavirus disease (COVID-19) this year, electronics companies have achieved better-than-expected strong performance, and with domestic and international uncertainties still high, the prevailing view is that personnel changes will focus more on stability than on major shifts.

According to industry sources on the 15th, LG Group is expected to be the fastest among major groups to carry out organizational restructuring along with appointments of presidents and executives by the end of this month.

LG Group is evaluated as having stabilized its organization this year, marking the third year since Chairman Koo Kwang-mo took office, with the group's performance expected to break records. Therefore, it is analyzed that the year-end personnel appointments will proceed by replacing only key executives in essential business divisions rather than making large-scale changes as in the early days of the chairman's tenure.

Vice Chairmen Kwon Young-soo of LG Corp., Ha Hyun-hoe of LG Uplus, Cha Seok-yong of LG Household & Health Care, and Shin Hak-cheol of LG Chem are highly likely to be retained or reappointed. Given the increased uncertainties due to the COVID-19 aftermath and the overall good performance of affiliates, there is little justification for replacing the vice chairmen.

In particular, the companies led by the vice chairmen are expected to record record-high performances again next year following this year, making it likely that their terms will continue.

LG Electronics President Kwon Bong-seok has been in office for only one year and has delivered results such as recording the highest-ever operating profit this year, so it is expected that he will continue to lead management next year. There is also interest in whether Kwon Bong-seok will succeed the vacant vice chairman position at LG Electronics, left by the retirement of Vice Chairman Cho Seong-jin last year.

Attention is also focused on who will be appointed as the new CEO of 'LG Energy Solution,' newly established through the physical division of LG Chem. Currently, Kim Jong-hyun, head of the battery business division, is strongly mentioned as the likely new CEO, while it is reported that Vice Chairman Shin Hak-cheol may concurrently serve as chairman of the board of LG Energy Solution.

[Image source=Yonhap News]

Samsung Group's regular personnel appointments are expected in early next month. However, since Vice Chairman Lee Jae-yong's major trials are concentrated around the year-end and early next year, there is a possibility that the timing of the appointments may be delayed or the scale of changes reduced.

In particular, since the key affiliates are performing well and the judicial risks are likely to continue into next year, the prevailing view is that the scale of personnel changes will not be large.

It is expected that the three key representatives of Samsung Electronics?Vice Chairman Kim Ki-nam, head of the DS (semiconductor) division; President Kim Hyun-suk, head of the CE (consumer electronics) division; and President Ko Dong-jin, head of the IM (mobile) division?are likely to be retained.

Since their terms are still ongoing and they have delivered solid performance despite the difficult management conditions caused by COVID-19, the likelihood of maintaining the current system is high.

The timing of Vice Chairman Lee Jae-yong's promotion to chairman is also attracting attention. Due to the variable of judicial risks, the business community expects that Lee will be promoted to chairman as early as the year-end or at the latest early next year. It is analyzed that the vacant chairman position will not remain empty for long.

An industry insider from the electronics sector said, "Despite the difficult situation caused by COVID-19 this year, electronics companies have achieved solid performance, and since the management environment remains uncertain, it is unlikely that the scale of executive personnel changes will be large."

This content was produced with the assistance of AI translation services.