South Korea's four largest chaebols begin restructuring

VietNamNetVietNamNet27/11/2023


Samsung Electronics, SK Group and Hyundai Motor Group will respectively conduct management reforms by the end of December 2023.

LG Display on November 23 appointed Jeong Cheol-dong, chairman of LG Innotek, as its new CEO. Jeong has been with LG for 40 years and has worked at several LG Group affiliates including LG Display and LG Chem.

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LG Twin Towers in Seoul, South Korea (Photo: Yonhap)

LG also announced promotions for other executives on the same day, while LG Energy Solution and LG Chem reshuffled the day before. LG's remaining subsidiaries, including LG Display, LG Electronics and LG Uplus, are expected to report results this week.

LG Energy Solution's board of directors has appointed Chairman Kim Dong-myung as the new CEO starting in 2024, replacing Kwon Young-soo, a chemist who has served LG Group for 44 years.

This is seen as a generational shift as Mr. Kim is 12 years younger than Mr. Kwon. With Mr. Kwon stepping down, all the directors who led LG's six subsidiaries when LG Group Chairman Koo Kwang-mo took office in 2018 have been replaced.

LG Group Vice Chairman Kwon Bong-seok and LG Chem Vice Chairman Shin Hak-cheol are expected to retain their positions.

Samsung Electronics, South Korea's largest conglomerate, is set to undergo a personnel reshuffle in early December. All eyes are on whether Vice Presidents Han Jong-hee and Kyung Kye-hyun, who head the company's key mobile and semiconductor divisions, will retain their positions as the company faces a severe downturn.

Mr. Han currently oversees the mobile phone, TV and consumer electronics divisions, while Mr. Kyung is in charge of the chip division.

Despite disappointing earnings this year, it is unlikely that the two will lose their jobs. Samsung will need to find stability in its leadership when Chairman Lee Jae-yong receives a court ruling on merger fraud charges in January.

There is also speculation that a new vice chairman will be appointed to ease some of the burden on Mr. Han’s shoulders. There is also talk of Samsung relaunching an office that acts as a “control tower,” similar to the Corporate Strategy Office that was disbanded in 2017 in connection with the massive influence-peddling scandal that led to the impeachment of President Park Geun-hye.

The Corporate Strategy Office, also known as the Future Strategy Office, is tasked with building top-down relationships, connecting Samsung Group with its many subsidiaries and establishing a unified corporate strategy.

SK Group, South Korea's second-largest conglomerate, is also expected to announce a management reshuffle in the first week of December. While nothing has been revealed, leadership changes are possible, especially as SK Group Chairman Chey Tae-won has stressed the importance of "quick and complete change" to address growing market uncertainty.

(According to Korea Herald)

Samsung continues to lead global TV sales Samsung Electronics leads the global TV market with a market share of nearly 30% in terms of revenue in the third quarter of 2023, while runner-up LG Electronics is the champion of the OLED TV market.


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