Samsung Electronics reorganizes into 7 separate divisions

By Lee Youkyung
SEOUL, Dec. 17 (Yonhap) -- Samsung Electronics Co. said Thursday that it has
realigned itself into seven stand-alone divisions to improve global business
performance, scrapping its two-division structure following its annual management
reshuffle.
Samsung Electronics' two business divisions -- Digital Solutions (DS) and Digital
Media & Communications (DMC) -- have been divided into seven business units which
include semiconductor, visual display, information and technology (IT) solution,
consumer electronics, mobile communication, telecommunication systems and
liquid-crystal display (LCD), the company said.
"A client of one electronics parts unit of Samsung could also be a rival of its
other divisions," said Samsung Electronics in a statement. "Therefore, we decided
to incorporate semiconductor-related businesses into one division to avoid a
possible clash among our clients."
Samsung Electronics' newly created semiconductor division absorbed its memory
chip and non-memory chip business, such as System LSI, which Samsung aims to ramp
up.
Samsung is currently the world's largest maker of computer memory chips, but it
lags in non-memory chips behind such companies as Intel Corp.
Other six stand-alone business units replaced the two large umbrella divisions
that were put in place since January, Samsung said.
The realignment comes a day after Samsung Group, South Korea's largest business
conglomerate, conducted its annual management reshuffle on Wednesday.
As part of the management reshuffle, Lee Jae-yong, 40, the only son and heir
apparent of the former chairman Lee Kun-hee, assumed the newly-created role of
chief operating officer (COO) at Samsung Electronics.
"COO will be in charge of promoting synergy effects among various units, managing
global clients and overseas cooperation," Samsung said in a statement.
ylee@yna.co.kr
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