Samsung Electronics Announces One-Point Personnel Changes on the 21st
New DS Division Head is Vice Chairman Jeon Young-hyun
Contributes to Strengthening Samsung Semiconductor Competitiveness
President Kyung Kye-hyun Appointed Head of Future Business Planning Team
Samsung Electronics' sudden replacement of the semiconductor (DS Division) head with Vice Chairman Jeon Young-hyun through a 'one-point' personnel move is largely interpreted as an effort to strengthen leadership. Former DS Division head President Kyung Kye-hyun voluntarily stepped down to find a breakthrough amid growing uncertainties in the semiconductor sector, and Vice Chairman Jeon, who contributed to strengthening Samsung Electronics' memory competitiveness, stepped in as the new DS Division head as a relief pitcher. Vice Chairman Jeon is regarded as one of the key figures in the Samsung Electronics semiconductor legend, alongside former Chairmen Kwon Oh-hyun and Kim Ki-nam.
Last year, Samsung Electronics recorded an operating loss of 14.88 trillion won in the DS Division. Given the semiconductor industry's worst-ever downturn and the company's focus on memory semiconductors, which are highly sensitive to economic cycles, the deficit was inevitable. Additionally, the market pointed out that Samsung's top competitiveness was weakening, as SK Hynix took the lead in high-value-added memory businesses such as High Bandwidth Memory (HBM). Recently, market concerns have grown due to increased economic uncertainties and the spread of Middle East risks. Because of this, some in the industry interpreted the personnel change as a disciplinary action against President Kyung.
It is reported that President Kyung expressed his intention to step down as division head to find a new breakthrough amid the semiconductor crisis. Having endured severe difficulties last year and seeing a recovery in first-quarter results this year, he judged that now was the right time to step down. President Kyung reportedly consulted with Han Jong-hee, head of the Device eXperience (DX) Division, and also reported in advance to the board of directors.
The newly appointed DS Division head, Vice Chairman Jeon, born in 1960, joined Samsung Electronics in 2000 and made significant contributions to the development of DRAM fine processes. Recognizing these achievements, he was awarded the Science and Technology Medal of Honor (Woongbi Medal) in 2011 and the Gold Tower Industrial Medal in 2021. In 2017, he moved to Samsung SDI to enhance competitiveness in the battery business. At the end of last year, he returned to Samsung Electronics after six years and has been leading the newly established Future Business Planning Group under the direction of Chairman Lee Jae-yong.
The semiconductor industry interprets Samsung Electronics' one-point personnel move as a declaration of its ambition to revive semiconductor competitiveness both internally and externally. Since one chairman oversees both the DX Division, responsible for home appliances and mobile businesses, and now Vice Chairman Jeon leads the DS Division, it is also evaluated that the divisions are now standing shoulder to shoulder.
Samsung Electronics plans to have Vice Chairman Jeon lead efforts to renew employees' determination through technological innovation and organizational revitalization, aiming to strengthen semiconductor technological superiority and future competitiveness. The company also announced plans to proceed with the appointment process of Vice Chairman Jeon as an inside director and CEO through next year's regular shareholders' meeting and board of directors.
President Kyung will lead the Future Business Planning Group, which Vice Chairman Jeon previously headed. Following Chairman Lee's directive to "secure technologies and products that do not exist in the world," he plans to work hard to strengthen the company's market position as a first mover. Samsung Electronics expects President Kyung to contribute to discovering future growth engines for the company and its affiliates by leveraging his experience and network as CEO of Samsung Electro-Mechanics and CEO of Samsung Electronics as well as DS Division head.
A business community official evaluated, "This one-point personnel move will resolve Samsung Electronics' uncertainties and serve as part of a win-win strategy to capture both current and future opportunities."
Meanwhile, Samsung Electronics appointed Yoo Kyu-tae, Vice President and head of the Strategic Marketing Team of the Medical Device Business Division, as the new head of the Medical Device Business Division and CEO of Samsung Medison on the same day.
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