Jun’s appointment will be reportedly made official on Friday at the board of directors’ meeting. He is also expected to be listed as Medison’s internal director at the shareholders’ meeting on the same day.
Medison declined to comment on the news.
The appointment of Jun, one of the key men inside the country’s largest business conglomerate, is expected to dispel rumors that Samsung Group is determined to sell off Medison as part of its downsizing plan.
The medical team leader of Samsung Electronics has conventionally taken over the Medison CEO role but since Jun’s predecessor Cho Soo-in stepped down last December, the position was left unoccupied, fueling speculations that Samsung is set to put Medison in the market due to sluggish sales.
Samsung acquired Medison in 2011 for 300 billion won ($22 million), after the company announced biomedical business as one of its key future growth engines in 2010.
However, the honeymoon period did not last long and Medison, which used to be the largest domestic medical device maker, slid to second place with 2 billion won in net loss from January to September 2015.
“Medison was known for making mid-to-high quality products at reasonable prices, but due to heated competition in the segment, the company lost its charm,” an industry insider said.
“The vacuum of the leadership has added weight to the rumors that Samsung is keen to sell the company by March. But Jun’s arrival may bring a sense of security to workers and investors,” he added.
Jun is regarded as one of the most successful workers in Samsung. He had previously served as the CEO of Samsung SDS, and led Electronics’ memory businesses and digital AV businesses.
By Bae Ji-sook (firstname.lastname@example.org)