Generation shift

Galaxy, women, foreigners keywords in year-end promotions

Samsung Group has geared up for a generation shift by promoting talented young individuals and females to executive positions in an apparent attempt to support Lee Jay-yong, the only son of chairman Lee Kun-hee, who was promoted to vice chairman Wednesday.

On Friday, the world’s biggest technology firm by revenue promoted 240 in a year-end reshuffle for second- and third-tier executives.

Samsung promoted 26 to executive vice president, 52 to senior vice president and 162 to vice president. A large number of foreign employees were also promoted.

The reshuffle suggests that the group’s top management has given more authority to its mobile communications division by promoting more executives than those from other units. All key figures from the mobile communications division were elevated.

Among 26 executive vice presidents inside Samsung Electronics, only eight came from its mobile communications division, which manages the company’s smartphone businesses led by divisional chief Shin Jong-kyun.

The move was announced a few hours after U.S. Federal Judge Lucy Koh heard arguments on the proposed ban Apple is seeking after a jury found in August that Samsung infringed on six of its patents and awarded $1.05 billion in damages. Koh urged the companies to agree on a settlement, while Samsung failed to reach a compromise with its biggest rival, to no one’s surprise.

“Amid the global patent war with Apple, Samsung Electronics’ mobile communications division did an excellent job in every measure. Because it showed stellar performances, that’s why top management decided to promote more,’’ an official from Samsung’s strategic planning office said.

“In the case of the mobile communications division, key figures in product development and marketing were all promoted,’’ the official said.

Lee Young-hee was the only female to become an executive vice president. The marketing specialist who had previously worked for Unilever, was rewarded for her contribution to boost the brand image of Samsung’s flagship products such as the Galaxy SIII.

Samsung rose to become the ninth-ranked global brand this year thanks to explosive sales of its Galaxy-branded devices, data from leading consultancy InterBrand showed.

With Lee, Jang Dong-hoon was also promoted to executive vice president. Jang has so far handled design-related strategies and is considered one of the top confidants of Shin.

The move comes after the company promoted Lee Don-joo and Hong Won-pyo to president. Lee and Hong are also from the same division and regarded as top figures directly involved in the company’s crucial projects.

In a related note, executives directly involved with key Samsung phone-making projects were also promoted.

“If you prove yourself, then we will promote. This simple formula was reaffirmed with more promotions in the handset division,’’ said the official from the office.

Samsung rose as the biggest phone manufacturer after passing Nokia of Finland.

The Suwon, Gyeonggi Province-based outfit is also expanding its market gap with Apple in the race for smartphones because Samsung is better positioned for faster releases of new models. Its mobile communications division accounts for 70 percent of Samsung Electronics’ profits and 50 percent of its total revenue, according to Samsung officials.

The company promoted several under 40s as executives.

Another noticeable point is that Samsung is also giving more power to females.

12 women benefitted from Friday’s reshuffle for low-ranking executives from nine last year and seven in 2011.

Western managers have also boosted their profile inside Samsung, which had so far been conservative in giving authority to non-Koreans, as the company is accelerating its efforts for target- and segment-based business strategies.

This year, the company promoted nine foreign employees from eight in 2012 and 2011, respectively, Samsung said in a statement.

Tim Baxter is the first foreigner to become a headquarters-based executive vice president. Out of 90 percent of Samsung’s annual revenue comes from overseas.

Samsung is the worlds’ top supplier for chips and flat-screens and the leader in consumer electronics. <The Korea Times/Kim Yoo-chul>