November 22, 2024

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[THE INVESTOR] The long-delayed restructuring at Samsung, including executive-level reshuffle, is picking up pace following the Oct. 13 announcement of Samsung Electronics co-CEO Kwon Oh-hyun that he is stepping down.

Kwon is expected to recommend his successor in a board meeting on Oct. 31, a move prompting anticipation that large-scale reshuffle of top executives will take place as early as November. 

Many of the top brass at key tech and financial affiliates including Samsung SDI, Samsung Electro-Mechanics, Samsung Life Insurance and Samsung Securities, are expected to be replaced.

Media reports have quoted Samsung officials as saying that the now-dismantled Future Strategy Office had prepared a draft of the reshuffle before the so-called Choi Soon-sil scandal broke out and Samsung heir Lee Jae-yong was imprisoned.

Samsung is also said to be considering forming a new control tower under its tech giant to oversee the core operations of all IT affiliates.

“Given how closely the IT and financial affiliates have to work together, we do need an organization for synchronizing their operations,” said one Samsung official on the condition of anonymity. “However, it’s also hard to imagine building a similar control tower so soon after the original one was dismantled.”

Another option is to set up a CEO committee consisting of the heads of Samsung affiliates aimed at making core management decisions, to take a page from other conglomerates such as Hyundai Motor Group.

By Kim Young-won (wone0102@heraldcorp.com)