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.
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
US-CHINA TENSIONS: The company said that it supplies self-designed chips to the Chinese company and, as such, is not affected by the latest US export restrictions Macronix International Co (旺宏電子) said it does not expect its shipments of memory chips to Huawei Technologies Co (華為) to be affected by the latest US export restrictions on the Chinese tech giant. “As long as the company [Huawei] places orders, we will ship [chips], unless the [Taiwanese] government restricts all Taiwanese companies from shipping” to Huawei, Macronix chairman and chief executive officer Miin Wu (吳敏求) said on Monday in Hsinchu. The US Department of Commerce on Friday took a further step to block chip supplies from non-US companies to Huawei by requiring foreign semiconductor makers to get US government permission before
E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to