Major structural change for Samsung Electronics

Samsung Electronics yesterday launched a major structural overhaul, eliminating its Digital Media & Communications (DMC) division, which covers completed products, and upgrading its two subunits - Consumer Electronics (CE) and IT & Mobile Communications (IM) as separate upper divisions.

Previously Samsung Electronics had two key divisions: DMC and Device Solutions (DS), which oversees components including semiconductors.

Following the reform, the tech bellwether will have three major divisions: CE, IM and DS. The CE division will be headed by president Yoon Boo-keun, who will also be responsible for the Design Management Center.

The most profitable IM, which produces smartphones, will be led by the media-savvy J.K. Shin.

The division will now manage digital cameras, which are increasingly linking Internet connections.

Vice Chairman and CEO Kwon Oh-hyun will head DS, which embraces semiconductors and LED, as he has thus far. CE and IM divisions have recently turned over 100 trillion won ($93 billion) in annual sales respectively, and many of their products, including smartphones and televisions, are No. 1 in the world.

The restructuring comes a year after Samsung streamlined its business into two umbrella units of components and finished products.

“By reinforcing the responsibilities of each head, we enabled speedy action against changes in the global environment where competition is intensifying,” Samsung said in a statement.

The company also said it aimed to reinforce its key units as well as accelerate growth in other units, such as printers, cameras and medical equipment.

As part of the move, Samsung shut down its IT solution business unit, which used to be in charge of the PC and printer business, and allocated the PC unit to the IM division and the printer unit to the consumer electronics division.

The reorganization stems from the company’s plan to create synergy between its tablet PC and Note PC development as well as to better deal with the growing trend of hybrid mobile gadgets, according to the company.

The 2013 plan comes two weeks after Samsung promoted Chairman Lee Kun-hee’s only son Jay Y. Lee to vice chairman of its flagship unit, escalating the heir closer to the top spot.

By Seo Ji-eun, Yonhap [spring@joongang.co.kr]