Sat, Dec 04, 2010 - Page 10 News List

Samsung promotes chairman’s son

AP, SEOUL

A scion of the family that founded the sprawling Samsung conglomerate has been promoted to president at the flagship electronics business, sending its shares to a record high.

Lee Jae-yong, 42, who is being elevated from executive vice president at Samsung Electronics Co, would retain his chief operating officer position, Samsung Group said in a statement yesterday.

In another promotion, Lee’s younger sister was made president of a theme park and resort operator that plays a key role in the conglomerate’s complicated structure based on cross shareholdings by group companies.

Samsung Electronics is a major force in the global electronics industry, holding the top spots in memory chips and flat-screen televisions and ranking No. 2 in mobile phones behind Finland’s Nokia Corp.

The company is also the flagship corporation of the Samsung Group conglomerate, which consists of dozens of other businesses including shipbuilding, construction, leisure and finance.

Investors cheered the news, sending shares in Samsung Electronics 4.1 percent higher to close at a record 894,000 won.

Shim Jae-youb, a strategist at Meritz Securities in Seoul, said the stock price rose on optimism that the promotions signal plans for vigorous investment in new business areas. It also benefited from signs that US consumer sentiment is improving, which is positive for Samsung sales, he said.

Lee Jae-yong, the son of Samsung Electronics chairman Lee Kun-hee and grandson of the conglomerate’s founder, was widely touted to become president after his father told reporters last month a promotion was imminent.

He assumes his new position as Samsung Electronics enjoys strong growth. The Suwon, South Korea-based company earned 4.46 trillion won (US$3.9 billion) in the July-September quarter, up 17 percent from the year before and a record profit for the third-straight quarter.

Samsung Group traces its roots back to 1938 when Lee Byung-chull, the father of Lee Kun-hee, founded an export business in the South Korean city of Daegu.

The promotion of Lee and other executives was an “organizational realignment to better prepare for the future in the rapidly changing business environment of the 21st century,” the company said in the statement.

Lee Jae-yong “is expected to continue to strengthen the competitiveness of Samsung’s strategic businesses and to lay the foundation for Samsung’s future new growth businesses,” the statement said.

Lee Jae-yong, who also goes by the name Jay Y. Lee, joined Samsung in 1991 and has also served as chief customer officer and vice president for strategic planning.

His promotion comes as Choi Gee-sung moves up to vice chairman from president while retaining his other title of chief executive officer.

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