In this file photo taken Jan. 16, 2023, Samsung Electronics Executive Chairman Lee Jae-yong (2nd from R) takes part in a business forum between South Korea and the United Arab Emirates at an Abu Dhabi hotel. (Image courtesy of Yonhap)
SEOUL, Nov. 28 (Korea Bizwire) – Samsung is reinforcing its management structure to address challenges stemming from the downturn in its semiconductor business, which has contributed to a broader corporate crisis.
The move follows a leadership reshuffle in Samsung Electronics’ semiconductor division on November 27 and involves the strategic deployment of trusted executives, including former members of the now-defunct Future Strategy Office (FSO), to key roles.
Establishment of Management Diagnostics Office
Samsung Global Research, the company’s research arm, announced the creation of a Management Diagnostics Office on Thursday. The new division, led by Choi Yoon-ho, President of Samsung SDI and a financial expert, will provide consulting and diagnostic support to Samsung’s affiliates.
This marks an effort to offer objective and comprehensive insights into market trends, industry forecasts, and competitive strategies.
Unlike previous consulting structures tied to Samsung Electronics’ Business Support Task Force (TF), the Diagnostics Office will operate independently under Samsung Global Research to ensure unbiased analysis and actionable recommendations.
“This initiative is aimed at overcoming group-wide challenges by drawing lessons from the semiconductor crisis and enhancing business competitiveness,” a Samsung spokesperson said.
Samsung Electronics’ Seocho building in Seoul (Image courtesy of Yonhap)
Key Personnel and Strategic Focus
The reshuffle also elevated Kim Yong-kwan, a seasoned strategist, to President of the newly created Management Strategy division within Samsung Electronics’ Device Solutions (DS) division.
Kim, formerly the deputy head of the Business Support TF, will now oversee semiconductor investments and support strategies. Meanwhile, Park Hak-kyu, a financial expert and President of the Management Support Office, will take over Kim’s responsibilities within the TF.
All three executives—Choi, Kim, and Park—are former FSO members and are seen as trusted allies of Samsung Chairman Lee Jae-yong. Their appointments signal a reinforcement of Samsung’s central management capabilities, echoing the group’s historical reliance on the FSO for coordination and strategic oversight.
The Business Support TF, often described as Samsung’s de facto control tower since the FSO’s dissolution in 2017, has gained further prominence under Jung Hyun-ho, Vice Chairman and a close confidant of Chairman Lee.
Mixed Reactions to Leadership Changes
While the changes have been framed as necessary for stability and crisis management, some industry experts have voiced concerns about Samsung’s reliance on internal networks and past strategies.
Critics argue that prioritizing cost efficiency under a finance-driven leadership may have hindered long-term innovation and competitiveness.
“Samsung’s bureaucratic tendencies, often attributed to the Business Support TF, are a key factor behind its current challenges,” said Park Ju-geun, head of Leaders Index, in a radio interview. “Reappointing former FSO executives could amplify external concerns about Samsung’s adaptability.”
Others suggest that Samsung’s cautious approach reflects the ongoing legal challenges faced by Chairman Lee, influencing the group’s preference for incremental adjustments over sweeping reforms.
Samsung Electronics headquarters in Seoul’s Seocho District (Image courtesy of Yonhap)
Additional Leadership Appointments
Samsung has also announced other executive changes. Choi Joo-sun, President of Samsung Display, will succeed Choi Yoon-ho as head of Samsung SDI, while Lee Chung, head of the Small-to-Medium Display Business Unit, will take over as President of Samsung Display.
Lee Joon-hee, a vice president at Samsung Electronics, will become the new President of Samsung SDS. Jung Deok-hyun will remain President of Samsung Electro-Mechanics.
These changes underscore Samsung’s efforts to balance continuity with targeted adjustments as it navigates a period of unprecedented uncertainty across its business landscape.
Kevin Lee (kevinlee@koreabizwire.com)
