Samsung Electronics is expected to complete the relocation of its Seoul offices to Suwon, Gyeonggi Province, next month, a move that is widely considered part of Samsung Group’s ongoing business restructuring.

Even though the tech giant has been headquartered in Suwon where its production facilities are based since 1973, the Seoul office has played a control tower role together with Samsung Corporate Strategy Office that oversees all group companies. 

Samsung Group has created the so-called “Samsung Town,” consisting of three skyscrapers, in Seocho-dong, southern Seoul, since 2008, with Samsung Electronics, the crown jewel, occupying the tallest 44-story building.

Under the relocation plan, some 5,000 designers and developers have already moved out to a new research and development campus in Umyeon-dong, southern Seoul, while the remaining supporting division workers will be relocated to Suwon on March 18.

The vacant offices will be occupied by Samsung’s financial units such as Samsung Life Insurance and Samsung Card that have been based in Taepyeong-ro, central Seoul.

The relocation comes as Samsung is streamlining its sprawling businesses into two main pillars -- tech and finance. In recent years, Samsung has sold off less profitable businesses such as defense and chemicals. Last week, it was rumored to be considering selling its advertising unit Cheil Worldwide to French ad giant Publicis Groupe.

“Samsung says the relocation aims to seek synergies among tech divisions. But it seems unavoidable more resources will be poured into financial units,” said an industry source on condition of anonymity.

Samsung Electronics vice chairman Lee Jae-yong, who has become the group’s de facto leader since his father Lee Kun-hee’s hospitalization in May in 2014, has also renewed commitment to the group’s financial units.

He used to meet CEOs of global tech firms and carmakers for partnerships but more recently he has met several leaders of financial institutions in the U.S. and China.

“In the past, Samsung was focused more on launching new products. But now they realize financial services should be supported to tap deeper into overseas markets,” another source said.

At the center of the new push is Samsung Pay, its mobile payments service, with which the company aims to build customer loyalty for its future device sales.

While its rivals such as Apple receive fees from card companies, Samsung offers the service free of charge to penetrate the market faster.

Following its U.S. debut in September last year, the pay service will hit the all-important Chinese market in March.

Samsung has already partnered with the state-owned bank card network China UnionPay Bank before its official launch. The heir apparent is scheduled to attend the 2016 Boao Forum next month to meet business leaders there.

According to iResearch Group, a China-based consultancy, about 60 percent of Chinese mobile users are estimated to use payment services. For now, Chinese players such as Alibaba’s Alipay (45 percent) and Tencent’s Tenpay (19 percent) dominate the market. 

By Lee Ji-yoon (jylee@heraldcorp.com)