Samsung Electronics Co. is undergoing its most significant management restructuring in years, merging its consumer and mobile divisions into a unified SET Division. This move is part of the company’s broader reorganization, which includes the replacement of its three co-CEOs with fresh leadership, as overseen by Samsung heir, Jay Y. Lee.
Under the new structure, Jong-Hee Han, formerly of the TV research and development team, will lead the newly formed SET Division, which consolidates consumer products and mobile operations. Han takes over from co-CEOs Dongjin Koh and Hyunsuk Kim, who previously managed the smartphone and consumer appliance sectors, respectively. Kyehyun Kyung has been promoted to lead the company’s key Device Solutions group, overseeing Samsung’s semiconductor operations, including memory, processors, and chipmaking for external customers.
This restructuring marks a significant shift for Samsung as it focuses on streamlining its operations. “The announcement reflects Samsung’s performance-driven culture and demonstrates Jay Y. Lee’s increased involvement in company management,” said Kyungmook Lee, a business management professor at Seoul National University.
Since his release from prison in August, Lee has actively participated in key decisions, including finalizing plans for a $17 billion plant in Taylor, Texas. His leadership is expected to be more hands-on as he continues to shape the company’s future. Currently, Lee is on a business trip to the Middle East, where Samsung is engaged in various joint ventures.
The consolidation of Samsung’s consumer and mobile operations is seen as a move to enhance operational efficiency and compete more effectively with rivals, particularly U.S.-based Apple Inc. The new division aims to foster better integration across Samsung’s diverse product lineup, something Apple has been successful at with its unified ecosystem of phones, PCs, and TVs. “Samsung’s products have lacked the seamless integration between phones and other devices,” explained Professor Lee. “This merger could be key in addressing that gap.”
The appointment of Han, who comes from the home appliances sector rather than the smartphone division, signals Samsung’s recognition of the need for improvement in its mobile operations. Despite maintaining its position as the world’s leading smartphone maker with a 20.8% market share, Samsung faces increasing pressure from competitors in the mobile space.
In addition to the leadership changes, Samsung also named Hark Kyu Park as the new chief financial officer, who will bring his experience from the Device Solutions team to the role.
Following the announcement, Samsung Electronics shares saw a modest uptick, though the company’s stock remains down over 5% for the year.
The restructuring is viewed as an important step in Samsung’s ongoing effort to enhance its competitive edge and streamline its operations in a rapidly changing technological landscape.
