Samsung is replacing all three of its CEOs and is merging its mobile and consumer electronics and IT units
On Monday, Samsung Electronics revealed a company restructuring that involves a shake-up of its leadership team and the merging of its mobile and consumer electronics and IT units, two of the company’s most significant businesses.
The reshuffling of the leadership team includes the promotion of Han Jong-hee, formerly the president of the visual display business, to CEO. Jong-hee will oversee the newly merged division, called SET. In addition, Kyung Kye-hyun, formerly the CEO of Electro-Mechanics, was promoted to lead the Device Solutions unit.
Samsung also appointed a new CFO, Hark Kyu Park, who was previously head of corporate management office in its semiconductor division, while reports from the The Korea Herald indicate that current CFO Choi Yoon-ho is likely to be named CEO of Samsung’s SDI battery division.
This three-CEO structure was first implemented at the company in 2013.
In a blog post, Samsung offers a history of its restructuring, with a particular interest in the transformation between 1988 and 1990, when the company focused on “clarifying its purpose.” This restructuring involved dividing its businesses into four core business lines: home appliances, telecommunications, semiconductors and computer business.
In 1989, though, Samsung recognized the importance of the electronics division, and according to the blog, “moved quickly to make it the centerpiece of the Samsung Group.”
“Finally, during 1990, Samsung solidified its four core business lines into four different divisions and established a unique management system for each division,” the company wrote.
Now, Samsung believes that combining its mobile and consumer units will allow it to create differentiated products and services focused on customer experience, adding that this new management team will help it address “intensifying global competition”.
Further restructuring is expected in 2022, the company said.
