updated 12:30 pm EDT, Thu May 22, 2008
Samsung Corp. shake-up
Samsung is undergoing some dramatic changes in its corporate structure, the Wall Street Journal reports. Following the exposure of a massive corruption scandal, the company has appointed external relations chief Lee Yoon-Woo as its new CEO, replacing Yun Jong-Yong. It has also sent Jay Lee, the son of ex-chairman Kun-Hee Lee, outside the country to develop business in new markets, a move analysts say may be intended to groom him as a future CEO, following the resignation of himself and his father from their earlier positions. It may also see more Samsung goods sold in China, India and Russia.
The biggest changes are being made to the Electronics division, where the home theater, DVD and Blu-ray sections are being merged into the TV business, which in turn is being combined with the home appliance business. Home appliances are said by analysts to contribute little to Samsung's profit. Separately meanwhile, the notebook, media player and set-top sections are being transferred to the company's telecommunications division.