Personnel Realignment of Samsung Group
The Samsung Group appointed new presidents on December 2. The personnel changes can be characterized by the spreading of Samsung Electronics’ corporate DNA to its other subsidiaries, a major reshuffle in its financial affiliates, and all of the third-generation owners rising to CEO positions.
Specifically, Cheil Industries Vice President Lee Seo-hyeon was promoted to president with seven other new presidents, while eight others were allowed to transfer or take new jobs.
One more executive was promoted to president when compared to last year, and no one was promoted to vice chairman. Samsung has selected vice chairmen-to-be among the CEOs who spent at least seven years as president.
The group followed a strict merit-based rule during the personnel transfer, and Samsung Electronics, which showed a significant improvement in sales this year, distinguished itself in it. Five out of the eight new president candidates of Samsung Electronics were appointed as the presidents of the other affiliates of Samsung Group.
Lee Seo-hyeon, the second daughter of Chairman Lee Kun-hee, took the president position in charge of management planning at the Fashion Division of Samsung Everland and the top position at the Management Strategy Division of Cheil Industries. All three children of the chairman, including Samsung Electronics Vice Chairman Lee Jae-yong and Hotel Shilla President Lee Bu-jin, rose to CEO positions. Their increased roles in Samsung Everland, which is at the top of the ownership structure of the Samsung Group, are resulting in a greater interest in who will inherit the company.
Also, all of the CEOs of the financial subsidiaries – Samsung Card, Samsung Fire Insurance, and Samsung Life Insurance – were replaced at this time. Keen attention is being paid to their future business strategies.