Samsung replaces handset division boss
Print Edition
Tech giant Samsung Electronics Co’s long-time handset division chief is ceding day-to-day management of the struggling smartphone business in the biggest leadership change yet under the conglomerate’s heir-apparent, Lee Jae-yong.
Samsung Group said Koh Dongjin, 54, will take over as president of the mobile communications business from 59-year-old Shin Jong-kyun, who will remain head of the overall mobile division for Samsung Electronics and focus on long-term strategy and developing new growth businesses.
The move diminishes Shin’s influence on the mobile business as the former cash-cow battles to reverse a slide in its market share to rivals like Apple Inc, Huawei Technologies Co and Xiaomi Inc.
“While it’s true that Shin delivered remarkable performance in the past, it’s indisputable that the Galaxy S6’s results fell short of expectations so a new leader was needed,” said Hansung University economics Professor Kim Sang-jo.
“Today’s appointments appear to acknowledge the need to develop a management system that can respond to challenges from Xiaomi and other Chinese companies,” he said.
The group’s announcement of management changes also saw another top executive moved into a strategic role, with TV and appliances division chief Yoon Boo-keun shifted out of the day-to-day operations.
Analysts said that while the moves were an acknowledgment that change was needed, they did not expect a new strategy to emerge any time soon.
“Koh is basically the same person as Shin,” said Chang Sea-jin, a professor at the Korea Advanced Institute of Science.
Analysts said Samsung needed to step up its software and services offerings to revive its mobile business, but Koh has an engineering background like Shin.
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