Analysis of Executive Personnel Changes from 2005 to 2024
Samsung Electronics has been promoting technology experts to president positions over the past decade, while LG Electronics has mainly promoted 'strategists' skilled in planning and strategy to such roles.
On the 14th, Asia Economy analyzed the regular president-level personnel appointments of Samsung Electronics and LG Electronics over the past 20 years (2005?2024). A total of 78 vice presidents (excluding owners, changes in commissioned duties, non-regular promotions, and affiliate company representatives) were promoted to president. The number of Samsung Electronics executives promoted to president increased from 20 in 2005?2014 to 33 in 2015?2024. In contrast, LG Electronics saw a decrease from 13 in 2005?2014 to 12 in 2015?2024.
Executives with experience in product development and production technology were classified as 'technical executives,' while those with experience in product planning and marketing were classified as 'non-technical executives.' Samsung Electronics had 18 technical executives promoted to president in the recent 10 years (2015?2024), double the 9 in 2005?2014. This increase naturally occurred as the group’s strategic control tower, the Future Strategy Office, was dismantled and the Device Solutions (DS) division’s Foundry (contract manufacturing) business unit was launched, boosting technical executive promotions to president.
Notable technical executives promoted to president in the past decade include Vice Chairman Jeon Young-hyun, head of the Future Business Planning Group (promoted to president in 2015 as head of the Memory Business Division), Vice Chairman Han Jong-hee, head and CEO of the Device Experience (DX) Division (promoted to president in 2018 as head of the Visual Display (VD) Business Division), and President Noh Tae-moon, head of the Mobile Experience (MX) Business Division (promoted to president in 2019 as head of the Wireless Business Development Office). Among non-technical executives, 15 were promoted to president, a slight increase from 11 in 2005?2014. The dismantling of the group’s control tower organizations such as the Restructuring Headquarters, Strategic Planning Office, and Future Strategy Office over 20 years had a significant impact.
Vice Chairman Jeon Young-hyun, Head of Future Business Planning Group at Samsung Electronics. Photo by Samsung Electronics
LG Electronics maintained a similar scale of technical executive promotions to president, with 5 in 2005?2014 and 6 in 2015?2024. Although the number of non-technical executives promoted to president slightly decreased to 6 in 2015?2024 compared to the previous decade, the company actively prioritized 'strategists' within the non-technical field. The dominant view is that recent president promotions have increased in the HE (Home Entertainment) and sales divisions, which excel in TV product planning and sales, rather than in the H&A (Home Appliances) business division that produces washing machines and refrigerators.
Former HE Division head Kwon Bong-seok, who was promoted to Vice Chairman of LG Corporation in late 2021, is regarded as a representative 'strategist' of LG and continues to actively participate in major decision-making as chairman of LG Electronics’ board. An industry insider from LG Electronics said, "The fact that many presidents promoted from HE backgrounds, including Vice Chairman Kwon, and CEO Cho Ju-wan, who has extensive overseas and marketing experience, remain in their positions is evidence that LG Electronics is focusing on setting the company’s direction and formulating strategies."
Narrowing the scope to the past three years, the personnel appointment trends show even more clearly that Samsung Electronics focuses on technology, while LG Electronics emphasizes strategy. Samsung Electronics has promoted executives such as Lee Jung-bae, president and head of the Memory Business Division (promoted in 2021), and Choi Si-young, president and head of the Foundry Business Division (promoted in 2021) within the DS division. LG Electronics has favored CEO Cho Ju-wan and President Park Hyung-se of the HE Division.
Samsung Electronics presidents Lee Jung-bae and Choi Si-young lead the AI high-bandwidth memory (HBM) semiconductor business and the ultra-fine process foundry, respectively. These two are responsible for Samsung’s most critical semiconductor businesses and technologies. LG Electronics’ CEO Cho created 'Vision 2030,' which outlines the goal of growing the company into a 100 trillion won enterprise.
Kim Kyung-jun, CEO of CEO Score, explained, "Semiconductors are a field where failure to secure advanced technology means immediate market elimination, so Samsung is putting its life on technology. On the other hand, considering that home appliances are an industry over 100 years old where new technologies rarely overturn the market, LG is focusing on strengthening strategy."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
