[NEWS FOCUS]Choi takes center stage in Samsung reshuffle

Choi Gee-sung, president of Samsung Electronics, was brought into the spotlight yesterday as he was picked to head one of the two units of Samsung Electronics.

The electronics giant has decided to reorganize its divisions, merging four units into two in a bid to streamline organizations and cope with the volatile business environment.

Choi, currently president of Samsung`s telecommunications division, will head not only telecommunications, but digital media in the new organization, named "Digital Media & Communications."

The other wing of the company, "Device Solutions," will be led by chief executive Lee Yoon-woo. The unit will include semiconductors and liquid crystal display businesses.

Choi, who has served in the company`s main units -- semiconductor, digital media and telecommunications, is now in a stronger position to succeed Lee in the future, analysts said. Choi is also said to be close to Samsung`s heir apparent Lee Jay-yong, son of former chairman Lee Kun-hee.

Some observers noted that yesterday`s sweeping reshuffle may help consolidate the leadership base of the junior Lee.

Under Choi, who took over the telecommunications division in 2007, Samsung Electronics overtook Motorola to become the world`s No. 2 handset maker, after Nokia.

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He also headed the company`s digital media division, leading Samsung to snatch the top position in the global TV market in 2006 through its premium TV brand "Bordeaux."

He is now given a much bigger task of helping the export-reliant company weather the global economic downturn.

The downturn is forcing consumers to rein in spending on electronics products such as mobile phones and TVs, which drives down prices and hurts Samsung`s profits.

Samsung is expected to post its first loss in eight years for the fourth quarter of 2008 and it faces a bleak outlook for 2009.

"The biggest challenge facing both Choi and Lee is to maximize efficiency and stabilize organizations as it is uncertain when the market will recover," an analyst told The Korea Herald on condition of anonymity.

A Samsung spokesperson said, "Choi, who served in the semiconductor, digital media and telecommunications businesses, has contributed to the company`s rise to a global company. He has an understanding of both technology and marketing."

However, a fundamental improvement is needed for the company to pull ahead of Nokia, the analyst said.

"Samsung should put more effort on customizing their products like Nokia does," he said.

Although Samsung`s handset sales have posted stellar growth, they still lag far behind Finland`s Nokia.

Chang Won-kie, vice president of Samsung Electronics, was appointed as president of Device Solution`s LCD unit, while Kwon Oh-hyun, currently president of the company`s semiconductor unit, will oversee the semiconductor unit. In the Digital Media & Communications division, Yoon Boo-keun, vice president of Samsung Electronics, was named as president of its video display unit.

More details on the organizational reshuffle will come out early next week.

Yoon Soon-bong, Samsung`s chief public relations executive, said Samsung Group will focus on boosting speed and efficiency in its organizational shake-up.

By Jin Hyun-joo



(hjjin@heraldm.com)