Tech giant reshuffles management to keep up innovation pace
By Lee Min-hyung
Samsung Electronics is moving to transform itself into a younger organization by promoting seven executives to presidents of the firm's major businesses.
The reshuffle is part of the company's efforts to catch up with the rapidly changing IT industry. The seven new presidents are in their 50s. The move also reflects the firm's merit-based reward system as four of the seven are from the chip unit that had record profits this year.
"This is the first time that four executives were promoted to presidents in our device solution (DS) unit," a Samsung official said. "The new presidents in their 50s generated outstanding performance in the firm's core business."
The DS division generated a record operating profit of 9.96 trillion won ($8.94 billion) in the third quarter. Sales reached 19.91 trillion won. This was the first time that the unit topped 50 percent in terms of the operating profit to sales ratio.
All about chips
Jin Gyo-young, who was promoted to the firm's memory chip unit, is at the center of the record profit this year. He is cited as one of the world's leading DRAM experts, allowing Samsung to commercialize 80-, 60-, 30- and 20-nano DRAM memory chips for the first time around the globe.
He joined Samsung Electronics in 1997, having served as a trailblazer developing state-of-the-art nano-sized memory manufacturing technologies.
"One of his noteworthy achievements as a first mover in the memory chip industry was the development of the 18-nano DRAM chips," the Samsung spokesman said. "He played a central role in maintaining Samsung's leadership in the memory semiconductor industry."
Samsung is an unmatched leader in DRAM and NAND flash memory chips. In particular, the company boasts a global DRAM market share of 48 percent last year.
"The memory chip business is one of Samsung's biggest cash-cow businesses, and the promotion is expected to help the company tighten its leadership, led by Jin's technological expertise."
Kang In-yup, the new president of the firm's System and LSI unit, has also been promoted to top management in recognition of his global presence as a leading telecom chip expert, having played a crucial role in Qualcomm. He participated in developing third-generation and fourth-generation telecom chips at the U.S. -based chipmaker before moving to Samsung Electronics in 2010.
He has since taken on major posts at Samsung's non-memory chip unit. His previous title includes chief of the DS unit's modem and system-on-chip development center.
"He is also known for his swift decision-making and securing initiatives to push for new businesses," the Samsung official said.
His achievements include development of a long-term-evolution modem chip for the Galaxy S6.
Jung Eun-seung, the former chief of the firm's semiconductor research center, was promoted to the president at its foundry business.
His promotion came in part due to the combination of his technological expertise and management mindset. While working at the firm's chip manufacturing facilities, he has also been recognized for excellent communication skills with clients here and abroad.
"For this reason, Jung has drawn a spotlight as one of our next-generation management leaders within Samsung Electronics," the company official said.
Hwang Deuk-kyu, new president at Samsung China, has experience in the DS unit's major management teams _ such as procurement, planning and inspection. His business acumen and networking skills are cited as the key reasons behind his promotion, according to Samsung.
In particular, while serving in a business planning team at the DS unit, he was in charge of establishing a chip plant in Xian, China.
"He is the best executive who understands the Chinese chip industry and has decades-long knowhow in internal and external business relations," the official said. "As a new Chinese unit chief, Hwang is expected to serve as a connecting dot to help other Samsung affiliates communicate in the Chinese market."
Tim Baxter, president and CEO at Samsung Electronics North America, was also promoted to the firm's top management.
Baxter started his career at Samsung Electronics in 2006 as a marketing expert, after securing experience in tech companies such as AT&T and Sony.
He has run Samsung Electronics' sales business in the United States for more than 12 years. In 2011, he led the local subsidiary's monthly record TV sales of 1 million. The following year, he was promoted to the firm's first foreign vice president.
His expertise comes from differentiated marketing strategies and communication with customers. Baxter has also contributed to raising Samsung's market share for premium products such as TVs and other home appliances in the U.S.
His leadership allowed Samsung to become the largest TV seller in the North American market for more than a decade.
The new chief of Samsung Electronics North America has also participated in key business decisions. Last year, Baxter led Samsung's acquisition of luxury appliance maker Dacor.
As part of the year-end reshuffle, former Samsung Electronics Vice Chairman Kwon Oh-hyun, who recently stepped down as chairman of the firm's board of directors, has been promoted to chairman of the Samsung Advanced Institute of Technology. Lee Sang-hoon, president of Samsung Electronics' corporate management team, has been nominated to fill Kwon's shoes.
