hankyoreh

Samsung conducted its biggest reshuffle of chief executives since its establishment, citing a need to deal with the economic recession by downsizing its operations and promoting younger employees. However, some critics say the reshuffle is not in line with measures the group announced last April to increase management transparency following the indictment of former Samsung Chairman Lee Kun-hee, who was sentenced to a three-year suspended prison term on tax evasion and other charges, primarily because the reshuffle reinstates top executives who stepped down prior to the trial.

On Friday, Samsung released a list of 25 chief executives who were promoted or reassigned through the personnel reshuffle.

Samsung Heavy Industries Co. CEO Kim Jing-wan and Samsung C&T Corp. CEO Lee Sang-dae were promoted to the position of vice chairman of their two respective companies.

Twelve executives, including Samsung Electronics Co. Vice President Jang Won-gi, were promoted to the position of president.

Meanwhile, chief executives who were born before 1948, including Samsung Electronics Vice Chairman Lee Ki-tae and Cheil Industries Co. President Je Jin-hoon, were asked to retire voluntarily.

Samsung was said to have carried out minor reshuffles of its chief executives amid a series of controversies over the past three to four years. These include allegations related to the group's illegal transfer of management rights, corruption claims against Samsung that arose from the National Intelligence Service's illegal taping of phone calls, and the trial of the former Samsung chairman.

Observers say these minor reshuffles prompted older Samsung executives to stay at their posts for a longer period of time than normal, while Samsung claims the latest reshuffle was instituted to give younger executives opportunities to advance more quickly.

In addition to the personnel reshuffle, Samsung Electronics, Samsung Group's flagship, has consolidated its six business divisions into two: one division for semiconductors and liquid-crystal displays and another for mobile phones and consumer electronics products. The two divisions are to be headed by Vice Chairman and Chief Executive Officer Lee Yoon-woo and President Choi Gee-sung, respectively.

As part of what it is calling "emergency management" plans, Samsung will also slash executive salaries by 10 to 20 percent and cut the size of travel expense accounts and other employee benefits.

The reshuffle was described both within and outside of Samsung as a step toward the post-Lee Kun-hee era. In a partial shake-up last May, older executives stepped down en masse. This, combined with the current reshuffle, gives Samsung Electronics Executive Vice President Lee Jae-yong, the only son of the former Samsung chairman, more room to maneuver, observers say.

Meanwhile, most of the chief executives employed at Samsung affiliates or the Strategic Planning Office who resigned last year to take the blame for allegations that the company used borrowed-named accounts to hide slush funds and other issues related to the chairman's indictment were returned to their posts under this latest reshuffle.

Please direct questions or comments to [englishhani@hani.co.kr]