Samsung has made noises about entering the solar sector as well. Here is a recent article about the return their (now pardoned) founder, Lee Kun-hee.
Lee Kun-hee Returns to Samsung Helm
By Kim Yoo-chul
Staff Reporter
Lee Kun-hee, 68, will rejoin Samsung Electronics as its chairman, two years after resigning from the group chairman's post following an independent counsel inquiry into tax evasion and breach of duty.
Despite the move, Lee will not be on the board of directors, Rhee In-yong, a Samsung senior vice president for communication said Wednesday.
The senior Lee's comeback had been predicted since December when he was given a presidential pardon, amid hopes that he could help South Korea's bid to host the 2018 Winter Olympics.
Following the pardon, Lee resumed his work as a member of the International Olympic Committee (IOC).
According to Rhee, CEOs of Samsung companies met with Lee twice in February to tell him that the group "desperately" needed his leadership.
"We admit that we had trouble achieving cohesiveness among different business operations. Lee's return will enable us to introduce more effective strategies, speed up investment and achieve synergies," Rhee said.
Before his resignation, Lee's office acted as a central "control tower" managing business strategies across all of more than 60 Samsung subsidiaries.
Judging by an e-mail statement released by Samsung Electronics, Lee appears to be pegging himself as a savior at a time when a sense of urgency is evident inside the company.
At the Consumer Electronics Show (CES) in Las Vegas in January, Lee said that he would return to Samsung only if he sees a "crisis" befalling the group.
"Top-tier global companies are falling. There's no guarantee that Samsung will be an exception. In the coming 10 years, products that now represent Samsung will mostly disappear," Lee was quoted as saying.
"We do not have time to hesitate. We need a restart."
A Samsung executive, refusing to be named, told The Korea Times that Lee had been shocked by the troubles at Japanese auto giant, Toyota, which might have influenced his decision.
The competition in the markets for memory chips and LCDs is increasing, and old foes such as Sony are climbing back on the television front. Samsung Electronics is also burdened by the fact that it has yet to produce a smartphone capable of competing with the iPhone or BlackBerry.
Industry watchers believe that Samsung Electronics is struggling to adapt as the focus of competition in the tech industry shifts from hardware to software, as seen in the markets for smartphones and 3D televisions.
The company's investment in new business sectors, such as healthcare, renewable energy and bio technology, has yet to yield visible results.
"Samsung has been on a strong and profitable growth track. But the performances were coming from our traditional engines - chips, flat-screens and mobile phones. Without strong leadership at the top, Samsung might find itself troubled like Toyota is now," said another Samsung executive.
"We don't believe the chairman will focus on memory chips and displays. Samsung will search for new revenue sources such as solar cells," Lee Sun-tae, an analyst at Meritz Securities said, adding the Samsung owner is expected to find new drivers to replace the component businesses.
Samsung Electronics is now the world's leading maker of memory chips, liquid crystal displays (LCDs) and flat-screen televisions, and trails only Nokia in handsets.
Lee's son, Jae-yong, currently Samsung Electronics' chief operating officer, is being groomed as the group's third-generation successor.
With Lee back in the picture, the transfer and division of wealth among his children will likely be getting more attention.
Some insiders predict that further realignment of Samsung's ownership structure could be possible around the time of the initial public offering (IPO) plan of Samsung Life.
Lee's daughters, Boo-jin and Seo-hyun, are both holding executive positions at Samsung Everland and Cheil Communications, respectively.
"The competition for the group heir will get fiercer and fiercer as the senior Lee will lead Samsung Electronics for some years. That means, Jae-yong and the daughters will expand their footprints to show their management capabilities," said an industry source.
koreatimes.co.kr
There have been other articles over the past few months. |
