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Samsung reorganization splits management of finished products from components

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Samsung Electronics has undergone a major reorganization and separated its components division from finished goods, reestablishing the "two-top" system it abandoned in 2009.

Samsung Kwon Oh-hyun
Samsung Kwon Oh-hyun

Samsung Electronics has undergone a major reorganization and reestablished its 2009 system of parallel executives in the components group and finished goods division. Choi Gee-sung, who was part of the previous dual-management system, maintains his position overseeing production of smartphones, TVs, and other finished products, while Kwon Oh-hyun has been promoted as a second vice chairman and will continue managing component production such as LCDs, and memory chips. The company also created a software center and set up a "media solution center" in Silicon Valley.

There's been speculation that the restructuring is designed to ease concerns that Samsung's components division could leak information about Apple orders to the mobile group — until now, both were under the command of Choi Gee-sung. Samsung "hopes the promotion of Kwon wipes out such worries," but also says the move will help maintain growth during a time of slow economic growth and a patent war with Apple. Whatever the reasons, it should make for interesting seating arrangements at company dinners.