Samsung's 'Super-Gap Strategy'... Establishes New Business Development Control Tower for Mobile and Visual Business Sectors

Create a 'Business Development Group' in Collaboration with the Future Technology Office and Future Business Planning Team

Samsung Electronics is accelerating the discovery of future growth engines by establishing a new business development control tower within its Device Experience (DX) division, which encompasses home appliances, mobile, and display businesses.

According to industry sources on the 11th, Samsung Electronics recently reorganized its DX division to create a 'Business Development Group.' This control tower, responsible for discovering new businesses, is led by Vice Chairman Baek Jong-su, who concurrently serves as the head of the new business task force (TF). The DX division also established business development organizations with the same name within its three business units: Mobile Experience (MX), Visual Display (VD), and Digital Appliances (DA).

Seoul Samsung Electronics Seocho Building. Photo by Jinhyung Kang aymsdream@

With the prolonged economic downturn causing overall poor performance in the set (finished product) business except for some premium products like foldable phones, the company aims to focus on discovering businesses that can overcome the demand slowdown crisis and generate long-term profits. The Business Development Group is expected to work organically and synergistically with the previously established Future Technology Office and the newly created Future Business Planning Team from this reorganization.

Samsung Electronics has faced criticism for stagnation in new business discovery for several years. Although more than a year has passed since Chairman Lee Jae-yong took office, the company has neither engaged in large-scale mergers and acquisitions (M&A) for growth nor avoided a historic loss in the semiconductor sector this year due to the global complex crisis. As global companies aggressively enter future growth areas such as artificial intelligence (AI), robotics, and biotechnology, Samsung Electronics appears to be seeking a breakthrough by putting new business discovery at the forefront to secure a super-gap competitive edge.

Earlier, Samsung Electronics established the Future Business Planning Team directly under the CEO in this year-end personnel reshuffle to discover new businesses that are not extensions of existing ones. The Future Business Planning Team is tasked with discovering future growth engines from a long-term perspective of over ten years.

Jeon Young-hyun, Chairman of the Board (Vice Chairman) of Samsung SDI and a key figure in Samsung Electronics' semiconductor success story, was appointed as the head of the team. Vice Chairman Jung Sung-taek, a former McKinsey consultant, and semiconductor expert Executive Director Lee Won-yong also joined. In August, the DX division also created the Future Technology Office to secure future technologies and products. The Future Technology Office is headed by Kim Kang-tae, Vice President and Head of the Technology Strategy Team at Samsung Research (SR).