Samsung’s large turnover

Samsung Group yesterday conducted its largest-ever management restructuring with the appointment of 490 executives at many of the conglomerate’s 67 affiliates.
The reshuffle is seen as marking the start of third-generation management at Samsung, which was established in 1938 and now accounts for a fifth of the country’s gross domestic product.
“[The group] conducted the largest-ever reshuffle in consideration of its record performance even in unfavorable conditions at home and abroad,” Samsung said in a statement.
Samsung Electronics, the group’s flagship company, rewarded 231 executives with promotions as the electronics giant emerged from the global financial crisis relatively unscathed and posted record earnings this year.
It was the first major large management change announced since Lee Kun-hee, the chairman of Samsung Electronics and son of group founder Lee Byung-chull, returned to management in March after being granted a special presidential pardon over a conviction of tax evasion.
Samsung Electronics is the world’s largest producer of memory chips and flat screens and the second-biggest global manufacturer of mobile phones.
Attention has naturally focused on the promotion of three of Chairman Lee’s children who have taken posts in some of the group’s most important companies.
“This family has shown a high consistency of business acumen. Although there is a natural concern about a single family having too much control, that is more of a philosophical and political concern. What investors want is professionalism and continuity,” said Tom Coyner, head of Soft Landing Consulting in Seoul.
But observers say that the restructuring is also important because it provides an indication of the future direction of Samsung.
There were a large number of executive promotions in research and development as well as sales and marketing – where high-flying managers have traditionally worked – along with the planning and budget departments.
“In hopes of securing distinctive technological competitiveness that can help [our company] become an industrial leader, [the group] promoted a large number of R&D personnel,” Samsung said.
A total of 100 people in the R&D sector received promotions, the biggest number ever. Last year, 65 R&D personnel were promoted.
The promotions were also characterized by the relative youth of the new executives, conforming to recent comments by Chairman Lee that young people are the most suitable for senior posts given the fast-changing nature of the global IT industry.
Three of the executives promoted yesterday are in their 30s, including Yang Jun-ho, 39; Mun Seong-wu, 39; and Lee Min-hyeok, 38, who were all promoted as vice presidents at Samsung Electronics. Lee is known for his contribution in designing the Galaxy S, the company’s latest smartphone.
Those associated with the Galaxy S were favored in the reshuffle.
Roh Tae-mun was promoted to senior vice president at Samsung Electronics for his role in developing the smartphone. Globally launched in June and selling about 775,000 units in Korea alone, the Galaxy S has emerged as the main competitor to the Apple iPhone in Korea.
The largest number of promotions occurred in Samsung’s mobile and semiconductor divisions at 31 and 49, respectively.
It’s also notable that Samsung promoted a large number of foreign executives at its overseas operations, including John Cerrato, Omar Khan and James Politeski, who all gained titles equivalent to vice president at Samsung Electronics for their work in expanding the company’s international presence.
By Kim Hyung-eun [[email protected]]
Article via Korea Joongang Daily