Samsung Everland Inc., the de facto holding company of South Korea's No. 1 conglomerate Samsung Group, said Thursday it is changing its name to Cheil Industries Inc. in the latest group-wide effort to restructure after its chairman's hospitalization.
The company, which operates a resort and amusement park, acquired the fashion division of Cheil in September 2013, while the textile and chemical businesses were incorporated into Samsung SDI Co., the world's top maker of TV displays and smartphone batteries, in March.
Samsung Everland said it has decided to adopt the name Cheil Industries to continue the philosophy and tradition of the business group. Cheil Industries was first established in 1954 as one of the original arms of Samsung Group.
The name "Samsung Everland," however, will still be used by the company as its theme park and resorts brand. Samsung owns the Everland theme park in Yongin, 49 kilometers south of Seoul.
Samsung Everland said that while it will continue its efforts to expand the fashion business overseas, it plans to nurture its construction and resorts sectors as well.
The official launch ceremony for the new name will be held on July 4, when the company will also announce its new "Premier Lifestyle Innovator" strategy that aims to bolster company-wide innovation.
Earlier this month, Samsung Everland said it will seek an initial public offering in the first quarter of 2015, a move apparently linked to the group's management succession to the next generation of the owner family.
Samsung has been going through mergers and acquisitions among its affiliates over the past few years, streamlining the group structure that appears to draw clearer lines for the intended business handover.
In 2013, Samsung Everland decided to sell its building management division to the group's security firm, S-1 Corp, while Samsung SDS Co. merged with Samsung SNS Co. The reorganization has continued this year, with Samsung General Chemicals Co. taking over Samsung Petrochemical Co.
Industry watchers said Samsung's restructuring efforts quickened after the hospitalization of Lee Kun-hee, who effectively heads the Samsung Group. He was hospitalized in mid-May after suffering a heart attack and is recovering at Samsung Medical Center. Doctors say he responds at times but is still unable to communicate. (Yonhap)