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Samsung Electronics to oversee component affiliates

PUBLISHED : October 12, 2017 - 14:53

UPDATED : October 12, 2017 - 14:53

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[THE INVESTOR] Tech giant Samsung Electronics is reportedly going to be in charge of supervising other electronic component units under the Samsung Group umbrella, including Samsung SDI and Samsung Display, according to news reports on Oct. 12.

“Samsung Electronics is considering taking up the supervision of other affiliates, including their day-to-day business, such as human resources,” a company executive was quoted as saying by The Korean Economic Daily.




The news comes amid a prolonged leadership vacuum at the conglomerate. as Chairman Lee Kun-hee remains bedridden, while heir-apparent Vice Chairman Lee Jae-yong and his right arm Vice Chairman Choi Gee-sung are both behind bars for their alleged involvement in the corruption scandal surround the now-impeached President Park Geun-hye and her confidante Choi Soon-sil.

Some insiders said having Samsung Electronics serve as a control tower would bring few changes as the tech firm is already making most of the decisions.

Samsung Electronics currently holds 84.8 percent of display maker Samsung Display, 19.6 percent of Samsung SDI, and 23.7 percent of Samsung Electro-Mechanics.

The Future Strategy Office, a former control tower of the conglomerate, was disbanded in March this year after it was hit by criticism for its alleged role in the so-called Choi Soon-sil Gate. Due to the absence of the office, combined with the incarceration of key executives, annual reshuffles and other big decisions have been delayed or canceled.

By Kim Young-won (wone0102@heraldcorp.com)

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