South Korea’s Samsung shakes up management to fight crisis

South Korea’s Samsung shakes up management to fight crisis
AFP
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First Published: Fri, Jan 16 2009. 09 56 AM IST
Updated: Fri, Jan 16 2009. 09 56 AM IST
Seoul: South Korea’s largest business group Samsung on Friday announced a sweeping reshuffle among affiliates in an attempt to streamline its businesses amid a worsening world economy.
Group flagship Samsung Electronics, the world’s largest computer memory chip maker, reorganised its businesses into two divisions -- combining the chip and LCD units, and merging the digital media and telecommunications units.
The firm’s vice chairman and CEO Lee Yoon-Woo will oversee the chip and LCD businesses, while mobile operations chief Choi Gee-Sung will head up digital media and telecom, the group said in a statement.
Samsung said the reshuffle would help it overcome the global recession. It will also cut executive salaries by up to 20% and slash benefits for other employees.
Twenty-five of the group’s chief executives were promoted or replaced in the reshuffle, the first since longtime chairman Lee Kun-Hee quit the group last April following a corruption probe ordered by parliament.
Lee was later convicted of tax evasion and given a three-year suspended prison term.
The group, which has 250,000 staff in 59 affiliates, accounts for about 20% of South Korea’s annual exports. It is one of the world’s leading manufacturers of semiconductors, mobile phones and LCD displays.
Analyst Hyun Park of Prudential Investment and Securities said the streamlining by Samsung Electronics is good news because it is working to cut costs and keep the organisation slim.
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First Published: Fri, Jan 16 2009. 09 56 AM IST
More Topics: South Korea | Samsung | Chip | Telecom | Recession |