Some Samsung Electronics Executives Notified of Retirement... Personnel Changes Possibly as Early as the 27th

Notification Centered on Semiconductor DS
Attention on Major Personnel Overhaul
Interest in Changes to 'Business Support TF'

Samsung Electronics is expected to carry out year-end personnel changes as early as the 27th. Given Chairman Lee Jae-yong's strong determination to overcome the crisis, it is anticipated that the company will focus on personnel reshuffling aimed at restoring Samsung's super-gap competitiveness. Attention is also being drawn to potential changes in the role of the Business Support TF led by Vice Chairman Jung Hyun-ho.

According to the business community on the 26th, Samsung Electronics reportedly began notifying some executives of their retirement starting the previous day, primarily within the Device Solutions (DS) division responsible for the semiconductor business.

Samsung Electronics typically conducts sequential personnel changes for the president-level executives, executive appointments, and organizational restructuring in early December. However, last year, the company moved the schedule up by about a week, conducting personnel changes at the end of November. This year, the timing is also interpreted as being slightly advanced to overcome the crisis and prepare for the future.

Since Chairman Lee Jae-yong himself has spoken about the crisis surrounding Samsung, expectations are growing that a large-scale personnel reshuffle and organizational restructuring will take place.

In his final statement during the second trial the day before, Chairman Lee said, "I am well aware that concerns about Samsung's future have recently grown very large," adding, "The reality we face now is more challenging than ever, but we will definitely overcome these difficulties and move forward one step further." He also stated, "Receiving the affectionate criticism and encouragement sent to Samsung and me, I have deeply renewed my resolve regarding company management."

Within the industry, it is expected that the DS division, which has been experiencing poor performance despite the semiconductor market recovery this year, will see the largest scale of personnel changes. Samsung Electronics has been evaluated as lagging behind its competitor SK Hynix in areas such as HBM (High Bandwidth Memory), and its foundry (semiconductor contract manufacturing) business has struggled to narrow the gap with Taiwan's TSMC. Most of the DS division's business unit heads are nearing the end of their terms, increasing the likelihood of replacements.

However, it appears likely that the 'two-top' system of Device Experience (DX) Division Head Han Jong-hee and DS Division Head Jeon Young-hyun will be maintained.

Attention is also focused on whether there will be changes in the Business Support TF. The Business Support TF was established after the dissolution of the Future Strategy Office, which had served as the group's control tower until February 2017 due to the political scandal. Recently, this organization has faced criticism for hindering Samsung's innovation. In particular, there has been a growing number of skeptical views regarding the role of Vice Chairman Jung Hyun-ho, head of the Business Support TF, and demands for personnel changes have surged. Whether Chairman Lee will respond to these demands remains uncertain.

The scale of executive promotions is also expected to be smaller than in previous years. However, the industry expects that the emphasis on women, foreigners, and technical talent will continue this year as well.

Some speculate that a large-scale personnel reshuffle may be difficult due to Chairman Lee's ongoing 'judicial risks.'

Meanwhile, Samsung Electronics plans to complete personnel changes and organizational restructuring and hold a global strategy meeting in mid-December to discuss next year's business plans.