Samsung shakes up executive ranks to fight economic crisis

(ATTN: UPDATES throughout with quote, details, stock reaction of Samsung Electronics)
SEOUL, Jan. 16 (Yonhap) -- Samsung Group said Friday it has promoted or replaced
25 chief executives at its affiliates and reorganized its flagship Samsung
Electronics Co. into two major business divisions, in a sweeping management
reshuffle intended to fight off the global economic crisis.

Samsung Electronics, the crown jewel of South Korea's largest business
conglomerate, has been hurt by sinking global demand for semiconductors and
flat-panel televisions amid the financial turbulence.
Under the reorganization, Samsung Electronics' four business divisions were
reorganized into two -- the Device Solution division of semiconductors and liquid
crystal display panels and the Digital Communication division of home appliances
and mobile phones.
Samsung Electronics Vice Chairman and Chief Executive Officer Lee Yoon-woo, 63,
was named to head the chip and LCD division, while the company's handset chief
Choi Gee-sung, 58, was promoted to vice chairman to head the consumer electronics
and mobile phone division.
Choi is known to be a close confidante of Lee Jae-yong, the only son of former
Samsung chairman Lee Kun-hee and now being groomed to take the leadership
position.
Vice Chairman Lee Ki-tae of the mobile phones division and Vice Chairman Hwang
Chang-kyu of the semiconductors division, two old guards of Samsung Electronics,
have departed, the group said in a statement.
Lee and Hwang, who are dubbed "Mr. Mobile Phone" and "Mr. Chip" by local media,
have overseen the company's rise in the two sectors over the past decade.
The reshuffle marks the first restructuring effort since the group's former
chairman stepped down in April last year in the wake of a parliament-ordered
corruption probe that led to his indictment for tax evasion and other charges.
In October last year, an appellate court upheld a lower court's decision to give
Lee a three-year suspended jail term.
Investors were muted. Shares of Samsung Electronics were unchanged at 459,500 won
at one point in afternoon trading.
"Young and talented executives were appointed to overcome the current global
economic crisis," the group said in a statement.
Samsung Group, which accounts for about 20 percent of South Korea's annual
exports, consists of 59 affiliates.
Samsung Heavy Industries Co. CEO Kim Jing-wan, meanwhile, was promoted to vice
chairman of the company. Twelve chief executives at Samsung affiliates were
replaced, the group said.
Separately, Samsung said it will cut executive salaries by as much as 20 percent
and reduce other employee benefits to "share the burden" stemming from the global
economic crisis.
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