Samsung Personnel Changes on the 5th... '60-Year Rule' Applied
Year-End Regular Executive Personnel Changes Completed... Key CEOs Retained
First Female CEOs at Samsung, SK, LG... 'Financial Experts' Favored
[Asia Economy reporters Han Yeju and Moon Chaeseok] The first female CEOs without family ownership backgrounds have emerged in Samsung, SK, and LG groups. Under the overarching theme of "preparing for the future amid stability," the key feature of the major groups' regular executive appointments is the strengthening of "diversity through talent utilization." Considering the global economic downturn, the focus was on overcoming the crisis by retaining major CEOs rather than making radical changes. There was also a trend of appointing many young talents in their 30s and 40s to lead new businesses, and emphasizing "financial experts" as cost-cutting issues became more important.
Thinning 'Glass Ceiling'... Emphasis on 'Preparing for the Future Amid Stability'
According to the business community on the 5th, female CEOs were appointed to key positions in the four major groups. It is analyzed that the glass ceiling has somewhat thinned as female representatives and executives recognized for their abilities and achievements took key positions.
Samsung Electronics announced the promotion of Lee Young-hee, Vice President and Head of the DX Division Global Marketing Center, to President and Head of the DX Division Global Marketing Office. Although Samsung Group oversees 23 affiliates, the only female CEO until now was Lee Boo-jin, the chairman's sister and CEO of Hotel Shilla. Lee Young-hee, a marketing expert from L'Or?al, joined in 2007 and is credited with creating the successful Galaxy marketing story.
The first female CEO in SK's history is Ahn Jung-eun, Chief Operating Officer (COO) of the online shopping mall 11st. Ahn, an e-commerce expert who has worked at Yahoo, Naver, and Coupang, directly planned several popular services that 11st recently launched successfully. In LG Group, following the retirement of Cha Seok-yong, Vice Chairman of LG Household & Health Care, Lee Jung-ae was appointed. Lee, a LG Group public recruitment graduate, was recognized for securing the top position in the household goods market since being appointed head of the household goods business division in 2011, and became the first female vice president from the group’s public recruitment in 2015.
Meanwhile, major groups sought organizational stability by retaining most of their top executives. Samsung Electronics maintained the existing dual CEO system of Han Jong-hee and Kyung Kye-hyun to ensure management stability amid uncertain internal and external environments. At SK Group, Chairman Cho Dae-sik of the SK Supex Council was reappointed for a fourth term, and major CEOs such as Vice Chairman Park Jung-ho of SK Hynix, Vice Chairman Kim Jun of SK Innovation, and Vice Chairman Jang Dong-hyun of SK Inc. retained their positions. Hyundai Motor Group promoted Luke Dongkerbolke, CCO, from vice president to president, while three presidents retired. In LG Group, Cha Seok-yong, who led LG Household & Health Care for 18 years, stepped down.
However, the focus shifted to future businesses in terms of selection and concentration. LG Group’s total number of promotions was 160, down from 179 last year, but LG Energy Solution, responsible for the group’s core future business of batteries, saw 29 promotions, nearly double last year’s 15. LG Group made personnel and organizational changes to accelerate in battery and automotive electronics fields, while SK focused on battery, bio, and green sectors.
The rise of finance executives preparing for risks such as liquidity crises was also notable. Cha Dong-seok, Vice President and CFO and Chief Risk Officer (CRO) of LG Chem, was promoted to president, and Lee Kyu-bok, a finance and overseas sales-based strategic planning expert at Hyundai Motor, was promoted to vice president and appointed CEO of Hyundai Glovis. SK Inc. significantly strengthened the CFO role by promoting CFO Lee Sung-hyung to president.
President Lee Young-hee, Head of Global Marketing Office, DX Division, Samsung Electronics. [Photo by Samsung Electronics]
Samsung President Group Injects 'Young Blood'... All Under 60
In the business community, the recent Samsung president group appointments are interpreted as applying the so-called "age 60 rule," where senior executives aged 60 or older step down from frontline positions to some extent. Among the nine promoted or reassigned executives, seven are in their 50s and two are exactly 60 years old.
The two positions of DX Division Chief Technology Officer (CTO) and Head of China Strategy Cooperation Office were entrusted to presidents born in 1962, both aged 60, with heavy responsibilities. Yang Geol, Vice President and Deputy Head of Samsung Electronics China Strategy Cooperation Office, was promoted to President and Head of the China Strategy Cooperation Office. Also, Jeon Kyung-hoon, Head of Samsung Electronics DX Division Network Business Unit, moved to the position of DX Division CTO and Samsung Research Head as president.
Considering the fierce competition in the "technology" field with the world's largest foundry (semiconductor contract manufacturing) company TSMC and the recent strict U.S. semiconductor equipment import regulations, it is analyzed that mechanically applying the "age 60 rule" to all presidents was difficult.
A business insider familiar with Samsung Group said, "Since both the CTO and China management positions are very important for Samsung, it seems they focused more on appointing the right person."
President Jeon is a former professor at Pohang University of Science and Technology. After joining Samsung Electronics in 2012, he served as head of the next-generation communication research team, network development team leader, and network business unit head, achieving the world's first commercialization of 5G. Samsung Electronics described him as "a communication technology expert who contributed to the growth of the network business" and said, "He will lead the discovery of future growth engines for Samsung Electronics by overseeing advanced research in the DX business."
President Yang is a semiconductor sales and marketing expert with experience as head of China General Affairs and deputy head of the China Strategy Cooperation Office. He was entrusted with the critical mission of revitalizing the memory semiconductor business in China. Samsung Electronics stated, "(After promotion to president) Yang is expected to lead smooth cooperation and support based on his China network and business insight as head of the China Strategy Cooperation Office."
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