[비즈한국] Samsung Electronics005930 Vice Chairman Han Jong-hee passed away on the 25th due to a heart attack. He was 63 years old. The wake for Vice Chairman Han is being held at the funeral hall of Samsung Medical Center in Ilwon-dong, Gangnam-gu, Seoul. The funeral procession is on the 27th, and the burial site is the Xian Family Memorial Park.
Born in 1962, Vice Chairman Han Jong-hee joined the Samsung Electronics Visual Display Division's development team in 1988. He served as the head of the Device Experience (DX) division, which oversees Samsung's consumer device business, starting in December 2021, and was appointed as CEO in 2022 to lead the business.
Samsung Electronics stated through an internal bulletin board, "We pray for the soul of the deceased, who dedicated himself to the company for the past 37 years," adding, "The deceased led the global No. 1 position in the TV business and did his utmost as head of the set division and DA (Digital Appliances) business unit even amidst difficult internal and external environments."
Currently, Samsung Electronics' board of executive directors consists of four members: Vice Chairman Han Jong-hee, Vice Chairman Jeon Young-hyun, President Roh Tae-moon, and President Song Jae-hyuk. With the sudden passing of Vice Chairman Han, one executive director seat will remain vacant for the time being.
Vice Chairman Jung Hyun-ho is being mentioned as a successor for the executive director position. Aside from Vice Chairman Han Jong-hee and Vice Chairman Jeon Young-hyun, Jung is the only person within Samsung Electronics to hold the title of Vice Chairman. Vice Chairman Jung Hyun-ho leads the Samsung Electronics Business Support Task Force (TF) and is responsible for coordinating business within the group.
Another potential candidate for executive director is Samsung Electronics Chairman Lee Jae-yong. Although Chairman Lee was appointed as chairman of Samsung Electronics in 2022, he is currently a non-registered executive. Among the leaders of the top five conglomerates (Samsung, SK, Hyundai Motor, LG, Lotte), Lee is the only one who is not a registered executive. There is growing opinion within the Samsung Group that it is necessary for Chairman Lee to take on the position of an executive director.
Lee Chan-hee, chairman of the Samsung Compliance Committee, said last February, "I advised Chairman Lee Jae-yong to return as an executive director to exercise responsible management," adding, "The reason responsible management through returning as a registered executive is necessary is that Samsung needs a channel to hear diverse opinions."
However, there is also a strong analysis that Chairman Lee will not take on the role of an executive director until his judicial risks are completely resolved. Chairman Lee faces a total of 19 charges, including unfair merger and accounting fraud. The first and second trial courts found him not guilty. As the prosecution has appealed, the case has been transferred to the Supreme Court.
Until last year, Samsung Electronics' board of executive directors consisted of a total of three members: Vice Chairman Han Jong-hee, President Roh Tae-moon, and advisor Lee Jung-bae. Samsung Electronics increased the number of executive directors to four by appointing new ones at the general shareholders' meeting on March 19 this year. Therefore, there is a possibility that Samsung Electronics may maintain a three-member executive director system for the time being, just as it did last year.
Samsung Electronics also needs to address the leadership vacuum in the DX division. Samsung Electronics' DX division revenue increased by 2.88% from 170 trillion won in 2023 to 175 trillion won in 2024. However, operating profit decreased by 13.52% from 14 trillion won to 12 trillion won during the same period. As the economic downturn is expected to continue this year, improving the profitability of the DX division is cited as a key task. Announcing its Q4 results last January, Samsung Electronics stated, "The DX division plans to solidify its AI leadership while continuing to innovate premium products and strengthen its lineup."
President Jeon Kyung-hoon is considered a key executive in the DX division. President Jeon serves as the Chief Technology Officer (CTO) of the DX division. He also shows great interest in AI. On March 6, President Jeon announced a research agreement for next-generation communication technology with Japan's KDDI Research to expand research on the convergence of communication and AI. At that time, Jeon said, "The joint research with KDDI Research will be an important study to achieve wireless communication innovation based on the convergence of communication and AI," adding, "We will strengthen research cooperation in next-generation communication with industry leaders to improve user experience."
Vice Chairman Han Jong-hee served as both the head of the DX division and the head of the DA business unit. Some had mentioned Executive Vice President Moon Jong-seung as the next head of the DA business unit ahead of last year's regular personnel reshuffle. Moon serves as the head of the DA business unit's development team. However, as a result, Vice Chairman Han remained as the head of the DA business unit.
Samsung Electronics has not made any specific comments regarding the successor to Vice Chairman Han Jong-hee. Samsung Electronics conducted its regular personnel reshuffle last December and formed a new board of directors through the general shareholders' meeting on March 19 this year. Given that it has not been long since the executive appointments were made, it is expected to be difficult to carry out a major reshuffle immediately.