Samsung Electronics, Han Jong-hee and Kyung Kye-hyun Lead Dual-Top System... JY Emphasizes New Samsung (Comprehensive)

[Image source=Yonhap News]

[Asia Economy Reporters Hyewon Kim, Heungsun Kim, Hyeyoung Lee, Hyunjin Jung] Samsung Electronics has replaced all three heads responsible for its semiconductor, home appliance, and mobile businesses. Kim Ki-nam, Vice Chairman who led the semiconductor division (DS), has been promoted to Chairman and will lead the Samsung Advanced Institute of Technology, a cradle for future technology development. Kyung Kye-hyun, former CEO of Samsung Electro-Mechanics, was appointed as the new head of the DS division, while Han Jong-hee, promoted from President, will lead the newly unified Consumer Electronics (CE) and IT & Mobile (IM) organizations, steering Samsung Electronics under a 'two-top' system.

This personnel reshuffle is seen as emphasizing 'preparing for the future,' a priority highlighted by Samsung Electronics Vice Chairman Lee Jae-yong. It is interpreted as empowering individuals who have demonstrated outstanding achievements in key areas to simultaneously enhance the global competitiveness of core businesses such as semiconductors, home appliances, and smartphones, while also boosting technological capabilities that will underpin product innovations in artificial intelligence (AI), next-generation telecommunications, and software. Furthermore, it is expected to strengthen communication with the MZ generation (Millennials + Generation Z) and others responsible for the group's future, fostering an organizational culture rooted in creativity and a spirit of challenge.

Samsung Electronics Replaces All Heads of Semiconductor, Home Appliance, and Mobile Divisions... Kim Ki-nam Promoted to Chairman

Kim Ki-nam, Chairman of Samsung Electronics

On the 7th, Samsung Electronics announced its 2022 regular executive appointments involving a total of nine people: one Chairman, two Vice Chairmen, three Presidents promoted, and three others with changes in duties. The core of this personnel move is the unexpected replacement of all three division heads. A Samsung Electronics official explained, "This is a bold generational change based on performance and a personnel move emphasizing strengthening future business competitiveness for a new era and new changes."

Samsung Electronics reorganized its three-division system?DS, CE, and IM?that had been maintained for ten years into two divisions: DS and Sets. This marks a transition from the three-person leadership system of 2013?2017 (Kwon Oh-hyun, Yoon Boo-keun, Shin Jong-kyun) and 2017?2021 (Kim Ki-nam, Kim Hyun-suk, Ko Dong-jin) to a two-top system. This is interpreted as an effort to create company-wide synergy beyond organizational boundaries.

Kyung Kye-hyun was appointed as the head of the DS division, responsible for semiconductor business, succeeding Chairman Kim. Kyung, a design expert who led memory semiconductor development at Samsung Electronics, returned to his original division with the special mission to maintain semiconductor technological superiority. Chairman Kim will focus on future technology development and nurturing successors as Chairman of the Advanced Institute of Technology, similar to former Chairman Kwon Oh-hyun.

The set business, focusing on home appliances and smartphones, has been unified under one roof. Han Jong-hee, a TV development expert, must lead the leap of the set business by enhancing synergy between business units and discovering future growth engines at the company-wide level. Jung Hyun-ho, head of the Business Support Task Force and known as a close aide to Vice Chairman Lee, was also promoted to Vice Chairman. Jung will play a de facto group control tower role by formulating mid- to long-term business strategies responsible for Samsung Electronics' future.

Choi Kyung-sik, Vice President of Samsung Electronics North America, and Park Yong-in, Vice President and Head of Strategic Marketing at the DS division's System LSI Business Unit, were promoted to President. Kim Soo-mok, Vice President and Head of Litigation Team at Samsung Electronics Legal Office, was promoted to President and Head of Legal Office for the Sets division. Park Hak-gyu, President and Head of Management Support Office at the DS division, was reassigned as President and Head of Management Support Office for the Sets division, and Kang In-yeop, President of the DS division's System LSI Business Unit, was reassigned as President of DS division's North America operations.

JY Emphasizes New Samsung, Empowering Talent with Future Innovation Achievements

Kim, newly promoted to Chairman of Samsung Electronics Advanced Institute of Technology, rose to the rank of Chairman based on his achievements as head of the DS division, Samsung Electronics' core business unit. The Advanced Institute of Technology, which he will oversee, is a key organization that researches future technologies linked not only to semiconductors but also to set (finished product) businesses and leads the nurturing of successors. A Samsung Electronics official emphasized, "To lead the Advanced Institute of Technology, which envisions the company's future, one must possess not only outstanding achievements and experience in business divisions but also insight."

Chairman Kim is a developer who led DRAM research and has worked across memory and non-memory semiconductor and display business units at Samsung Electronics. Since he took charge of the DS division in November 2017, Samsung Electronics has achieved remarkable results in the global semiconductor market. As of the third quarter, Samsung Electronics' semiconductor division posted record sales of 26.41 trillion KRW and operating profit surpassed 10 trillion KRW for the first time in three years since the semiconductor supercycle in Q3 2018. Samsung holds the world's number one market share in memory semiconductors such as DRAM and NAND flash.

Additionally, Samsung is investing and developing technology in system semiconductors, including foundry services, aiming to become number one globally by 2030. Samsung Electronics explained, "Considering his significant contribution to the semiconductor division's record performance and global leadership, Vice Chairman Kim was promoted to Chairman."

Kim's promotion is seen as continuing the 'salaryman chairman' legacy following former Chairman Kwon Oh-hyun. An engineer by background who devoted 40 years to semiconductors, Kim's promotion to Chairman after 40 years with Samsung Electronics is a testament to his role in maintaining Samsung's position as the global semiconductor leader. Since joining Samsung Electronics in 1981, he has held positions such as Head of Memory Business Unit, Head of System LSI Business Unit, President of Samsung Display, and President overseeing the DS division. His career path parallels that of former Chairman Kwon, who also rose from a new employee in Samsung's semiconductor division to Chairman, embodying the success story of a salaryman.

Vice Chairman Han Jong-hee of Samsung Electronics (left) and President Kyung Kye-hyun of Samsung Electronics

Han, promoted to Vice Chairman and CEO, will lead the Sets division, which integrates CE and IT & Mobile (IM) divisions. He is expected to be responsible for discovering new businesses and technologies as future growth engines. Han, a TV development expert, led the Visual Display Business Unit since 2017 and contributed to Samsung Electronics' TV business maintaining the world's number one market share for 15 consecutive years until last year. It is highly likely that Samsung will maintain the top position for the 16th consecutive year this year. Samsung Electronics stated, "Han is expected to pursue a strategy that maximizes synergy between IM and CE businesses based on his proven capabilities."

Chosen as Key Man for New Samsung Leap... Accelerating Future Business Discovery

Jung's promotion to Vice Chairman, known as a close aide to Vice Chairman Lee, is also noteworthy. Initially, there were expectations in the business community that Samsung might establish a 'control tower' organization comparable to the former Future Strategy Office, but appointing Jung overturned such speculation. Instead, it is expected that Jung will lead preparations for a New Samsung that responds to changes in the new era, centered on the Business Support Task Force he heads. Currently, the Business Support Task Force focuses on two functions: strategy and personnel, coordinating common issues between Samsung Electronics and its affiliates and discovering future businesses.

Jung's promotion is considered somewhat delayed within Samsung Electronics. He was promoted to President in 2015, two years earlier than Vice Chairman Han Jong-hee, who was promoted to President in 2017. Industry insiders expect that Jung's promotion will accelerate the discovery of future businesses, a key role of the Business Support Task Force. This aligns with Vice Chairman Lee's recent repeated declarations of his commitment to the New Samsung.

Earlier, during a business trip to the U.S. last month?the first in five years since 2016?Vice Chairman Lee said, "As the map of the future world and industry is being redrawn, our survival environment is dramatically changing," and added, "We cannot overcome this great transition period by merely 'widening the gap' with companies chasing or following us." He emphasized, "It will be difficult and painful, but let's make the impossible possible, pioneer a future no one has ventured into, and create a new Samsung." At the memorial service for the late Chairman Lee Kun-hee's first anniversary last October, he urged, "With a humble heart, let's all move forward together to create a new Samsung and a better future for our neighbors and society."

In August, Samsung Electronics announced an investment plan worth 240 trillion KRW for future preparation and recently decided to build a new foundry plant worth 17 billion USD (about 20 trillion KRW) in Taylor, Texas, USA. Recently, it also announced a personnel system reform plan to respond to global management environment changes and lay the foundation for mid- to long-term sustainable growth, concretizing its vision for the 'New Samsung.' The promotion of Chairman and Vice Chairmen is expected to accelerate future preparation.

Samsung Electronics will soon finalize and announce the 2022 regular executive appointments below Vice President level and organizational restructuring.

Samsung SDI and Electro-Mechanics Heads Also Replaced... 'Electronics Experts' Choi Yun-ho and Jang Deok-hyun Appointed

Along with the replacement of the three heads at Samsung Electronics, most heads of Samsung Electronics affiliates such as Samsung SDI and Samsung Electro-Mechanics have also changed. This is evaluated as a move to appoint experts with professionalism to strengthen business and technological competitiveness.

On the 7th, Samsung SDI promoted Jeon Young-hyun, President, to Vice Chairman and appointed Choi Yun-ho, President of Samsung Electronics, as the new CEO. Vice Chairman Jeon is expected to contribute to strengthening ESG (Environmental, Social, Governance) management and nurturing successors by serving as Chairman of the Board, considering his achievements in significantly growing the battery business and achieving record performance.

Choi, appointed as the new CEO, is recognized for his global business expertise, having served as Head of Global Headquarters Management Support Team, Executive in charge of Business Support Task Force, and Head of Corporate Management Support Office at Samsung Electronics. Amid rapid growth and intensified competition in the global battery market, Samsung SDI expects Choi's global business experience and financial expertise to greatly enhance Samsung SDI's global business competitiveness.

On the same day, Samsung Electro-Mechanics appointed Jang Deok-hyun, Vice President of Samsung Electronics, as the new CEO, promoting him to President. This appointment filled the vacancy immediately after Kyung Kye-hyun moved to become head of Samsung Electronics' Device Solutions (DS) division.

Jang is a semiconductor development expert who has held positions such as Head of Solution Development at Samsung Electronics Memory Business Unit, Head of LSI Development at System LSI Business Unit, Head of SOC Development, and Head of Sensor Business Team. He is recognized for his technological leadership across various products including memory and system semiconductors. With Jang's appointment, Samsung Electro-Mechanics expects to strengthen its technological competitiveness in key products such as multilayer ceramic capacitors (MLCC) and grow into a global top-tier component company.

Meanwhile, Choi Joo-sun, who was appointed President of Samsung Display at the end of last year, retained his position in this personnel reshuffle. He is expected to focus on securing future growth engines in the display market through commercialization of Samsung's next-generation Quantum Dot (QD) displays, which began full-scale mass production this year.

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