Samsung and LG Announce Key Personnel Appointments for 2024
Both Samsung and LG have recently made significant personnel appointments for 2024, with each company demonstrating different approaches to leadership changes within their respective organizations.
Samsung: Emphasizing Stability
Samsung Group is maintaining a stable executive team through minimal changes, consistent with the group’s efforts to ensure security and continuity within its leadership structure. Notable appointments include Jong-hee Han and Kyeong-hyeon Kye as CEOs of Samsung Electronics, as well as the establishment of a new Future Business Planning Group.
LG: Embracing Change and Strengthening Leadership
LG Group, in contrast, has chosen to embrace change by implementing significant personnel changes. Kwon Young-soo, Vice Chairman of LG Group, has resigned, marking a shift toward a two-person vice-chairman system from the previous three-person structure. This move is seen as part of Chairman Koo Kwang-mo’s strategy to consolidate and strengthen his personal leadership system.
Consideration of Judicial Risks
Both companies’ personnel decisions have, to some extent, been influenced by potential judicial risks. Samsung’s choice to maintain stability is perceived as a strategic move amidst ongoing legal challenges faced by Chairman Lee Jae-yong. On the other hand, LG’s leadership changes are also informed by internal family conflicts and ongoing legal disputes that could impact the company’s future prospects and organizational stability.
Generational Shift in Leadership
In addition to changes in leadership structure, both Samsung and LG have seen a generational shift in their executive teams. This shift aligns with broader trends in the corporate world, reflecting a transition to a new generation of leaders within these influential organizations.
Author: Sangho Yoon, Reporter at THE ELEC
THE ELEC is a specialist media outlet covering semiconductors, displays, batteries, automotive electronics, and ICT parts.
Copyright © THE ELEC. Unauthorized reproduction and redistribution prohibited.
Samsung Electronics makes personnel appointments earlier than usual … System maintenance Han Jong-hee and Gyeong Gye-hyeon
LG Group Vice Chairman Kwon Young-soo resigns… Strengthening Chairman Koo Kwang-mo’s personal government system
Comments on personnel adjustments to respond to judicial risks between the two main groups
Samsung Electronics Chairman Lee Jae-yong (pictured left) and LG Chairman Koo Kwang-mo (pictured right)
Samsung and LG have held presidential appointments for 2024. The two CEO system groups held their main ties, Samsung and LG Electronics. However, the personnel policies of the remaining affiliates are different. While the Samsung Group chose ‘stability’ to minimize change, LG Group put more emphasis on ‘change’ by replacing the energy solution and display CEOs.
On the 28th, Samsung Group and LG Group are implementing or have completed ‘Regular Presidential Personnel 2024’ respectively.
◆ Samsung is ‘stability’, LG is ‘change’
Samsung Group is announcing personnel changes on a company-by-company basis after disbanding its Future Strategy Office in 2017. Samsung Electronics cut its first tape off on the 27th. There are a total of 5 people, including 2 people who were promoted to president and 3 people whose duties were changed.
Samsung Electronics hosted the system of CEO Jong-hee Han and CEO Kyeong-hyeon Kye. CEO Han resigned as head of the video display (VD) business division. CEO Kyung also serves as director of the Samsung Institute of Advanced Technology (SAIT). Yong Seok-woo, vice president of the VD division of the Device Experience (DX) division, and Kim Won-kyung, head of the Global Public Affairs (GPA) team of the DX division’s management support office, were appointed presidents. They will serve as head of the VD department and head of the GPA office, respectively.
In addition, a new Future Business Planning Group was established. Jeon Young-hyun, Chairman of the Board of Directors of Samsung SDI, is the head of the company. It is similar to the ‘New Business Promotion Team’ of 2009. Samsung Electronics explained, “It is an organization that will lead the discovery of future businesses that will change the pattern of the Samsung Group 10 years from now.” The Business Strategy Task Force (TF), led by Vice Chairman Jeong Hyun-ho, remains the same.
LG Group held regular personnel management for 2024 over three days from the 22nd to the 24th. LG Energy Solution CEO Kwon Young-soo (Vice Chairman) resigned. LG CEO Kwon Bong-seok (Vice Chairman) and LG Chem CEO Shin Hak-cheol (Vice Chairman) remained in their positions. The three-person vice-chairman system was reduced to a two-person vice-chairman system.
LG Chairman Koo Kwang-mo has led LG since 2018. Meanwhile, former Vice Chairman Kwon Young-soo served as a running mate. Former Vice Chairman Kwon served as Chief Operating Officer (COO) of LG and then as CEO of LG Energy Solutions, laying the foundation for LG’s new business envisioned by Chairman Koo.
With the resignation of former Vice Chairman Kwon, all of the people who became vice chairman during Koo Bon-moo’s recent tenure as former chairman have left the company. Chairman Koo’s political system was strengthened. Vice Chairman Kwon Bong-seok shut down the smartphone business while he was CEO of LG Electronics. He has been promoted to vice chairman through executive personnel changes in 2022 and serves as LG COO. Vice Chairman Shin Hak-cheol is the first external CEO hired by Chairman Koo in December 2018. LG’s leadership and related heads were reorganized with people appointed by Chairman Koo, including the CEO of LG Electronics , Jo Joo-wan.
◆ Consider the impact of judicial risk
Some interpret that Samsung’s less-than-expected personnel change could be due to judicial risk in mind. Since 2017, Chairman Lee Jae-yong has been to Seocho often due to suspicions of handling state affairs and illegal succession. Because of this, personnel and organizational reorganization has not been carried out properly. Until the regular personnel appointments in 2016, Samsung Electronics usually held CEO appointments in the first week of December. It was different from the regular greetings in 2017. It was jagged. This can be interpreted as considering when Chairman Lee is present and when he is not.
Samsung Electronics implemented regular personnel management for 2017 in May 2017. 2018 regular personnel appointments were held in November 2017. Representatives Kwon Oh-hyun, Yoon Boo-geun, and Shin Jong-gyun stepped down and were replaced by Kim Ki-nam, Kim Hyun-seok, and Ko Dong-jin. The 2019 regular greetings were returned to December 2018, but the 2020 regular greetings were pushed back to January 2020. The 2021 and 2022 regular greetings have returned to normal. Through regular personnel appointments in 2022, CEOs Kim Ki-nam, Kim Hyun-seok, and Ko Dong-jin left, and the system was established as representatives Jong-hee Han and Gyeong Gye-hyeon. The regular personnel appointments in 2023 were held approximately one week earlier than the original timetable.
There were predictions that there would be significant changes before this change of personnel, but in the end, Samsung chose ‘stability’. Before the results of the first trial on suspicions of the illegal succession of Chairman Lee during the first half of next year, the company intends to maintain a stable management stance by retaining the CEOs of major related companies. Regarding this appointment, Samsung Electronics said, “We expect to establish a foundation for sustainable growth while promoting management stability.”
LG Group’s personnel managers also seem to have taken judicial risks into account. However, rather than ‘stability’, the choice was made to strengthen Chairman Koo Kwang-mo’s own political system. Chairman Koo clashes with the late former chairman Koo Bon-moo’s wife, Kim Young-sik, his eldest daughter Koo Yeon-kyung, CEO of LG Welfare Foundation, and his second daughter Koo Yeon-soo. Chairman Koo is the adopted son of the late Chairman Koo. Until now LG has adhered to the principle of eldest son succession. As the eldest son of the late Chairman Koo, Chairman Koo inherited 8.76% of LG’s 11.28% stake. CEO Koo Yeon-kyung and Koo Yeon-soo had shares of 2.01% and 0.51%, respectively. Mrs Kim had no part to play. Chairman Koo’s view is that ‘the legacy has been carried out in accordance with the wishes of the late Chairman Koo.’ Other family members argued that ‘the inheritance must be made at the legal rate.’ The trial began in earnest last July.
As of September 30, LG’s share ratio of ▲largest shareholder ▲special related person ▲special related corporation was 41.70%. The situation could get complicated depending on the outcome of the trial and which side the particular related parties support.
◆ There has also been a generational change in personnel.
Meanwhile, generational change is an irreversible trend. The new president of Samsung Electronics, Yong, was born in 1970. This is the first president of Samsung Electronics born in the 1970s. Vice Chairman Moon Hyuk-soo, appointed CEO of LG Innotek, was also born in 1970. President Kim Dong-myeong, who will replace former Vice Chairman Kwon as CEO of LG Energy Solutions, was born in 1969.
THE ELEC = Reporter Sangho Yoon crow@thelec.kr
《The Elec, specialist media in the fields of semiconductors, displays, batteries, automotive electronics, and ICT parts.
Copyright © THE ELEC, a medium specializing in electronic components Unauthorized reproduction and redistribution prohibited.
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