[Click eStock] "Samsung Electronics, CEO Premium Expected"

Reorganizing the Division into Two Main Pillars: Sets and Components
KB Securities Maintains Samsung Electronics Target Price at 100,000 Won

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Samsung Electronics has reorganized its business divisions into two major pillars through a new executive reshuffle. KB Securities anticipates that Samsung Electronics' semiconductor strategy will shift in a positive direction.

According to KB Securities on the 8th, Samsung Electronics restructured its four business divisions?home appliances, smartphones, semiconductors, and displays?into two main pillars: sets and components, through the executive reshuffle conducted the previous day. Additionally, the two newly appointed CEOs are engineers with a background as heads of development offices, possessing a high level of technical understanding.

Until now, Samsung Electronics was organized into four separate business divisions, which was criticized for making the workflow somewhat complex. This reshuffle and business division reorganization are expected to integrate the development processes by sets and components, enabling streamlined handling and generating synergy effects.

Kim Dong-won, a researcher at KB Securities, explained, "With the full-scale market expansion of new growth areas such as the metaverse starting next year, connectivity among set devices becomes increasingly important," adding, "This will positively influence Vice Chairman Han Jong-hee's future strategy formulation." Furthermore, he added, "In the components business, CEO Kyung Kye-hyun is expected to focus less on marketing and more on expanding advanced processes in the semiconductor and display sectors, as well as concentrating on developing next-generation new technologies."

Changes are also expected in Samsung Electronics' semiconductor strategy going forward. Until now, Samsung Electronics has maintained the number one market share by expanding memory semiconductor production, but with CEO Kyung Kye-hyun, known as a semiconductor design expert, it is anticipated that Samsung will focus on maintaining and leading technological leadership in memory semiconductors.

Accordingly, KB Securities maintained its investment opinion of "Buy" on Samsung Electronics, with a target price of 100,000 KRW. The closing price on the previous day was 77,400 KRW.

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