More Public Appearances for Management Succession

It is reported that the son of Samsung Group Chairman Lee Kun-hee, Lee Jae-yong, who is the current managing director of Samsung Electronics, recently visited Samsung Heavy Industries Geoje Shipyard, one of the core businesses of the Group.

It is unusual for Lee Jae-yong, who is also COO of Samsung Electronics, to visit the Shipyard, which has nothing to do with his job.

Many Samsung observers see his visit as an expansion of activities in the succession of management rights.

The son visited the Shipyard on behalf of his father-

According to business circles, the managing director went to Geoje with two other ranking officials from the Group’s strategic planning office.

From 10 a.m. to 4 p.m. on Thursday the would-be successor toured the dockyard, meeting and encouraging the employees. He was said to be particularly interested in the stellar performance of the shipbuilder.

An official from the Group explained, “Originally, the Chairman was scheduled to visit but something came up and his son paid a visit instead.”

This marks the first time that a member of the founding family has visited the shipyard since Chairman Lee visited in the early 1990s.

In fact, Lee Jae-yong has been visiting client companies in Europe, Southeast Asia, China, Latin America and the U.S.

The managing director, along with his father, participated in an event held in Guatemala this past July designed to provide support for Pyeongchang’s bid for the 2014 Winter Olympics.

Succession of management right gains momentum-

Considering the Chairman’s age, it would take long time before the managing director replaces his father as the Group’s Chairman.

There is a great deal of evidence that shows the Group’s support for the succession.

Samsung Electronics cancelled the additional position of Hwang Chang-gyu, President of Samsung Electronics’ Semiconductor Operations, appointing Cho Su-in, the vice president of the Semiconductor Division, to the chief of Samsung’s Memory Division, and assigning Samsung Electronics president Kim Jae-uk to SDI president.

Park Jong-woo, president of Samsung Electronics’ Digital Media Division, was assigned with an additional position in Samsung Techwin’s Camera Division. Because of this change, Samsung Electronics is now in charge of the brand’s digital camera business, which is regarded as a new growth engine for the company.

Because of the shift, Samsung insiders say, “A succession of management rights is just around the corner.” Following Yoon Jong-yong, Samsung Electronics CEO and Samsung Group vice-chairman, they also claim, “A post-Yoon system, in which Lee Jae-yong leads, is gradually dawning.

One official from the business circle said, “On the occasion of Samsung Group’s 70th anniversary next year, there are many symbolic events including Samsung affiliates moving into a new Samsung building in Gangnam area. The expedited process of management succession of Lee Jae-yong, who is turning 40 next year, is not unrelated to the 70th anniversary.”

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