'Samsung Electronics Vice President-Level Talent Replacement... 40s Promoted Executives Three Times More Than Those Over 55'

40s Share 22%, 55+ 8%
Semiconductor 40s Vice Presidents Share Tripled in 3 Years
4.4→10.2→11.8% Expanding Annually

Samsung Electronics is getting younger. Among the executives promoted to vice president at Samsung Electronics next year, those in their 40s accounted for 20%. Over the past three years, the proportions were 16.2%, 32.2%, and 21.6%. Those aged 55 and older accounted for 8.8%, 13.6%, and 7.8%. For three consecutive years, the number of vice presidents promoted in their 40s has exceeded those aged 55 and older.

According to an analysis by Asia Economy of Samsung Electronics' annual regular executive (vice president and general manager, excluding fellows and masters) personnel appointments, among the 51 executives promoted to vice president in next year's personnel changes announced on the 29th of last month, 11 are in their 40s. This accounts for 21.6% of all vice president promotions.

Samsung Electronics Chairman Lee Jae-yong visited the Samsung Electronics Cheonan Campus on February 17 to tour the package line and review business strategies. [Photo by Samsung Electronics] [Image source=Yonhap News]

The proportion of vice presidents promoted in their 40s recorded double digits for three consecutive years, with 16.2% in 2022, 32.2% in 2023, and 21.6% this year. Although it decreased compared to last year, it still surpassed 20%. In terms of numbers, it was 11 → 19 → 11, maintaining double digits.

The 40-something vice presidents promoted this time include Kang Dong-gu (47), head of Flash Design Team 2 in the Memory Business Division of the DS (Device Solutions) Division; Kim Il-ryong (49), head of Product Technology Team in the System LSI Business Division of the DS Division; Park Se-geun (49), D-RAM PA1 Team in the Memory Business Division of the DS Division; Hwang Hee-don (49), Chief Technology Officer (CTO) of the Semiconductor Research Institute Flash Process Development Team in the DS Division; Park Tae-sang (48), head of the Smart Factory Team at the Production Technology Research Institute in the DX (Device Experience) Division; and Jung Hye-soon (48), head of the Framework Development Team in the MX (Mobile Experience) Business Division of the DX Division.

On the other hand, there are four vice presidents promoted who are aged 55 and older, accounting for 7.8% of all vice president promotions. Over the past three years, the proportion of vice presidents aged 55 and older was 8.8%, 13.6%, and 7.8%, about half the level of those in their 40s. The number decreased from 6 → 8 → 4.

There was one executive in their 30s promoted to general manager, accounting for 1.3% of the total. The ratio was 2.7%, 2.8%, and 1.3%. The number was 3 → 3 → 1. The only 30-something general manager in next year's personnel changes is Son Wang-ik (39), born in 1984, general manager of Smartphone Development Group 1 in the MX Business Division of the DX Division.

Despite a decline in performance this year, Samsung Electronics continued its generational shift policy by favoring vice presidents in their 40s. Samsung Electronics' consolidated operating profit for the third quarter (2.4335 trillion KRW) decreased by 77.6% compared to the same period last year.

Among the vice presidents promoted in their 40s, the proportion in the DS Division significantly increased. The number of 40-something vice presidents promoted in the DS Division over three years was 3 → 6 → 6, with proportions of 4.4%, 10.2%, and 11.8%. Meanwhile, the number of 40-something vice presidents promoted in the DX Division was 8 → 13 → 5, with proportions of 11.8%, 22%, and 9.8%.

Conversely, the number of promoted executives aged 55 and older showed similar patterns in both divisions. Over three years, both DS and DX Divisions had 3 → 4 → 2 executives promoted. This indicates a decrease in promotions for those aged 55 and older in both divisions, unlike the increasing proportion of 40-something promotions in the DS Division.

Yong Seok-woo, President and Head of the Visual Display Business Division, DX Division, Samsung Electronics. [Photo by Samsung Electronics]

The generational shift trend was also detected in the regular president-level personnel appointments. Samsung Electronics promoted Yong Seok-woo (53), born in 1970, head of the Video Display (VD) Business Division in the DX Division, from vice president to president for the first time since the company's founding. With a president born in the 1970s emerging in the president-level appointments, expectations arose that executives in their 40s would advance in the vice president level and below appointments, which has become a reality.

Oh Il-seon, director of the Korea CXO Research Institute, said, "With a president born in the 1970s, it could be an implicit message that those born in the 1960s should naturally step down," adding, "Samsung Electronics appears to have fired the starting gun for generational change through next year's regular president-level and executive personnel appointments."