Samsung Electronics Vice Chairman Lee Jae-yong has opted for generational change and stability over a massive overhaul in conducting his first regular reshuffle of group executives.  

Samsung Group on Dec. 1 announced a regular personnel change involving seven group presidents, including three promotions to president, the lowest number in the recent years. 

Contrary to expectations, a trio of Samsung Electronics executives -- President Shin Jong-kyun of the IT & Mobile Communications (IM) Division, President Kwon Oh-hyun of the Device Solution (DS) Division, and President Yoon Boo-keun of the Consumer Electronics (CE) Division -- have been retained. The current management echelons appears to have been kept intact in consideration of the ailing Samsung Group Chairman Lee Kun-hee and a number of pending issues such as lower-than-expected performances of the business group’s flagship company. 

The three retained presidents in the IM Division are President Shin, President Kim Jong-ho of the Global Manufacturing Center, and President Kim Young-ky of the Network Business Department. The IM Division — which once chalked up more than 6 trillion won in operating profit due to its excellent performance in the smartphone business segment — dropped to profit levels seen in the segment of general mobile phones.  

Three  of  the seven presidents in the IM Division — President Lee Don-joo in charge of strategy marketing, President Kim Jae-kwon in charge of global operation, and President Lee Chul-hwan in charge of development — have been relieved of their posts, taking responsibility for the worsening performances of Samsung Electronics and its sagging smartphone business. 

President Hong Won-pyo, head of the Media Solution Center, also moved from the IM Division to the Global Marketing Strategy Office.

Kim Hyun-seok, head of the Image Display Business Department of the CE Division, was promoted to president, while Samsung Electronics Senior Executive Vice President Jun Young-hyun was appointed to president in charge of DS Division’s Memory Business Department. 

Samsung Display Senior Executive Vice President Lee Yun-tae was promoted to Samsung Electro-Mechanics president, replacing President Choi Chi-hoon. 

Samsung BP Chemicals Senior Executive Vice President Sang Young-jo was made Samsung C&C senior executive vice president, while President Cho Nam-sung of Samsung SDI’s Materials Division was appointed to be Samsung SDI president. 

President Yook Hyun-pyo, in charge of strategy support at Samsung Economic Research Institute, was tapped to be S-1 Corp. president and CEO. Samsung Asset Management President Yoon Yongam was made Samsung Securities president and CEO. 

Samsung Engineering President Kim Jae-yul, in charge of management planning, moved to Cheil Communications to join his wife Lee Seo-hyun, a daughter of Samsung Group Chairman Lee, to jointly head the communications company. 

Word is circulating that President Kim could make a run to become a member of the International Olympic Committee on which Group Chairman Lee now sits.  

Samsung Securities President Kim Seok was made president of the Samsung Social Contribution Committee. 

President Park Sang-jin of Samsung SDI Energy Solution Division moved to Samsung Electronics President to be in charge of external affairs. 

Samsung Futures President Kim In-joo has virtually demoted by being transferred to president in charge of strategy at Samsung Economic Research Institute. He once served as head of the Samsung Group’s financial team.  

The reshuffle has been designed to ensure stability, generational change and offer reward to meritorious persons and disadvantages to underperformers, according to business sources.  

“This year has seen most group subsidiaries, including Samsung Electronics, post lackluster performances, so less promotions have been made than previous yearsa,” said Executive Vice President Lee Jun in charge of communications at the Samsung Group Future Strategy Office.

The average age of the newly promoted presidents has declined from 54.3 years old in 2013 to 53.7 year old this year.