Samsung unveils three new co-CEOs after corruption scandal – CNET


Samsung is getting a trio of new co-CEOs.

Jung Yeon-je/AFP/Getty Images

Samsung is getting new executive leadership in the wake of a corruption scandal involving its de facto chief.

The South Korean technology giant said late Monday it had promoted three presidents — Kim Ki-nam, Kim Hyun-suk and Koh Dong-jin — to succeed Vice Chairman Kwon Oh-hyun and Presidents Yoon Boo-keun and Shin Jong-kyun in the company’s current three co-CEO management structure. The three will also serve as heads of the company’s device solutions, consumer electronics and IT and mobile divisions, respectively.

The moves come amid a robust recovery for Samsung, which has been stung in recent years by an expensive and embarrassing recall of its Galaxy Note 7 and saturation of the global smartphone market. Hours before the management changes were announced, Samsung reported its biggest operating profit ever as it benefited from strong demand for its memory chips and other components.

“The next generation of leaders are well suited to accelerate the pace of innovation and address the demands of the connected world,” Kwon, the outgoing vice chairman, said in a statement. “They have proven track records with extensive experience and outstanding expertise in their fields.”

Kwon has served as a co-vice chairman of Samsung Electronics with Jay Y. Lee, heir to the family that owns the giant Samsung conglomerate. Lee was sentenced to five years in prison after being convicted in August of bribing South Korea’s former president to help him increase his power over the company.

Kwon, who oversaw the growth of Samsung’s component business which now generates much of the firm’s profits, cited the scandal when he announced earlier this month he would step down from management after three decades with the company.

Samsung also announced the immediate resignation of CFO Lee Sang-hoon, who has been nominated to succeed Kwon as chairman. Samsung said this would be the first time the chairman and CEO roles would be separated.

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