[Asia Economy Reporters Changhwan Lee and Dongwoo Lee] Samsung Electronics has appointed former Minister of Strategy and Finance Jae-wan Park as the new chairman of the board.
On the morning of the 21st, Samsung Electronics held a board meeting at its headquarters in Suwon, Gyeonggi Province, and announced the appointment of former Minister Park as the new chairman.
This follows the announcement on the 14th that President Sang-hoon Lee of Samsung Electronics intended to step down from his position as inside director and chairman of the board. Lee was legally detained at the end of last year on charges related to the disruption of the Samsung Electronics Service labor union.
Former Minister Park, who had been considered a candidate for the next chairman since the end of last year, was reportedly reluctant to accept the position until recently. However, he decided to accept the chairmanship to prevent a prolonged vacancy in the role.
The chairman of the board represents Samsung Electronics' board, decides on agenda items to be submitted to the board, convenes meetings, and leads the proceedings. The chairman also acts as a mediator among the directors. Until now, this role has mainly been held by professional managers, and this is the first time an outside director has been appointed as chairman of the board.
A Samsung Electronics official explained, "Following the separation of the chairman of the board and CEO positions in March 2018, we have now appointed an outside director as chairman of the board," adding, "This will enhance the independence and transparency of the board and further promote responsible management centered on the board."
Former Minister Park is a former bureaucrat who served at the Ministry of Finance and the Board of Audit and Inspection. After leaving public office in 1996, he worked as a professor at Sungkyunkwan University. He entered politics in 2004 as a proportional representative for the Grand National Party in the 17th National Assembly and held positions such as Chief of State Policy Planning at the Blue House, Minister of Employment and Labor, and Minister of Strategy and Finance during the Lee Myung-bak administration.
He was appointed as an outside director of Samsung Electronics in 2016. Among the six outside directors, he is the most senior and concurrently serves as chairman of the Governance Committee and the Audit Committee. These committees are internal board organizations established to improve corporate governance, review management matters, strengthen shareholder communication, and audit company operations.
On this day, Samsung Electronics resolved at the board meeting to recommend President Jong-hee Han and President Yun-ho Choi as candidates for inside directors. President Han, head of the Visual Display Business Division, was recognized for his outstanding management skills and leadership, contributing to Samsung's 14 consecutive years as the global number one in the TV market amid fierce global competition.
The company stated that President Han, having served as senior head of the set business division and held key core positions, is expected to smoothly act as a bridge between the board and the business division, contributing not only to strengthening the company's business capabilities but also to enhancing the board's status.
President Yun-ho Choi, Chief Financial Officer (CFO) of Samsung Electronics' Management Support Office, has held key positions such as head of the European Business Support Team and head of the Wireless Business Support Team, gaining extensive experience in business innovation and risk management. Based on his expertise in finance, the company expects him to support and monitor the business divisions' management activities and contribute to rational coordination of major decisions among the business divisions.
They are scheduled to be appointed as inside directors following approval at the shareholders' meeting to be held on the 18th of next month.
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