Logo of Phnom Penh Post newspaper Phnom Penh Post - Samsung Electronics halts planning for 2020 amid legal risks

Samsung Electronics halts planning for 2020 amid legal risks

Content image - Phnom Penh Post
Samsung Electronics halts planning for 2020 amid legal risks. The Korea Herald/ANN

Samsung Electronics halts planning for 2020 amid legal risks

No one is sure who the top brass of Samsung Electronics will be next year as the company is silent about its annual organisational reshuffle amid ongoing multiple trials involving key executives, industry sources said on Thursday.

The South Korean tech giant usually appoints its top executives early in December and personnel shake-up across all affiliates by mid-December.

But this year, neither its leadership nor its business divisions have made personnel announcements, making it harder for industry watchers to make reliable forecasts about South Korea’s biggest conglomerate’s operations next year.

The chief speculation is that this could be due to the lingering legal risks stemming from the ongoing trials involving the de facto Samsung leader Lee Jae-yong and over 30 executive members.

Samsung heir Lee was in a courtroom last Friday for the third retrial on his sentence for convicted charges of bribery involving former President Park Geun-hye by the Supreme Court in August.

It is likely that a final verdict on his sentence would be issued before or after the general election slated for April.

Until then, the Samsung leader would have to bear the burden of not being able to pay undivided attention to spearheading his group.

Along with Lee, around 30 executives are also involved in disgraceful corporate scandals.

Three executive vice presidents were imprisoned on Monday on charges of attempts to eliminate evidence that supports the prosecutors’ claim that links an accounting fraud at Samsung BioLogics with Lee’s leadership inheritance scheme.

Some 15 current Samsung executives are to stand before the court on Friday and next Tuesday on charges of disrupting employees’ efforts to create labour unions at former Samsung Everland and Samsung Electronics Service.

“The executives facing the trials are subject to the upcoming organisational reshuffle,” said an official. “It would be hard to ignore the legal issues for each of them as they are currently heading major teams or groups.”

Some industry officials speculate that Samsung would be preparing for a larger-than-expected reform, including strengthening the group’s compliance unit as a judge had ordered Lee to do so.

“Lee will need to show he is at least making efforts to renew the organisation somehow to avoid imprisonment,” an industry official said.

While the three CEO of Samsung’s business divisions – Device Solutions CEO Kim Ki-nam, IT & Mobile Communications CEO Koh Dong-jin and Consumer Electronics CEO Kim Hyun-suk – are predicted to retain their positions, bigger-than-expected changes could be made to the organisational structure of each division, some observers say.



  • First deportees of the year touch down in Cambodia

    Twenty-five Cambodian-Americans landed in Phnom Penh on Wednesday, marking the first such deportations of the year. “On Wednesday, US law enforcement authorities deported 25 Cambodian nationals that immigration judges determined had no legal basis to remain in the US,” said Arend Zwartjes, spokesperson for the US

  • Qatar Airways to connect Doha and Siem Reap town

    Qatar Airways Company QCSC has announced a new route connecting Qatar’s capital Doha with Siem Reap, a move hailed by local officials as a significant step to boost tourist numbers. A Qatar Airways representative, speaking at the Kuwait Aviation Show, announced on Thursday that

  • Kingdom drafting new law to strengthen immigration

    The Ministry of Interior on Tuesday said it had formed a working group to draft amendments to the Law on Immigration. Its secretary of state Sok Phal told The Post that the amendments will strengthen the management of immigrants in line with the current situation.

  • Sokha defence denies Tech’s claims

    ON DAY two of Kem Sokha’s treason trial, lawyers for the government said the defence had raised questions in an attempt to allow their client to make a public statement and a conclusion to the case, something his legal team denied. Ky Tech, a

  • Cambodian general visits Myanmar to enhance national defence cooperation

    Royal Cambodian Armed Forces (RCAF) commander-in-chief Vong Pisen is now in Myanmar leading a delegation that aims to improve ties, particularly in national defence, with the fellow Asean member. The timing of Pisen’s four-day visit to the Southeast Asian neighbour is highly symbolic, with

  • Sokha’s treason trial begins

    The treason trial of Supreme Court-dissolved Cambodia National Rescue Party (CNRP) president Kem Sokha began at the Phnom Penh Municipal Court on Wednesday with the presentation of a two-minute video clip. The footage, which was the basis of the charge against him, was dismissed by