Samsung shakes up executive ranks to fight economic slump

(ATTN: UPDATES with details; RECASTS headline; RESTRUCTURES)
SEOUL, Jan. 16 (Yonhap) -- Samsung Group, South Korea's largest business
conglomerate, said Friday it has promoted or replaced 25 chief executives at its
affiliates in a sweeping management reshuffle intended to fight off the global
economic crisis.
Samsung Electronics Co., the group's crown jewel and the world's largest maker of
memory chips and liquid crystal display panels, has been hurt by sinking demand
for semiconductors and flat-panel televisions.
The reshuffle marked the first restructuring effort since the group's former
chairman, Lee Kun-hee, 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.
Under the reshuffle, Kim Jing-wan, chief executive of Samsung Heavy Industries
Co., the world's No. 2 shipyard, was promoted to become the company's vice
chairman. Twelve chief executives at Samsung affiliates were replaced, the group
said in a statement.
At the same time, Samsung Electronics plans to combine its semiconductor and
liquid crystal display divisions into a parts business. The company's home
appliance and mobile phone divisions will also be consolidated into a product
business, group officials said.
Samsung, which accounts for about 20 percent of South Korea's annual exports,
consists of 59 affiliates.
(END)