The keyword of the Samsung Electronics personnel announcement on the 7th of this month was a "generational shift" through the voluntary departure of Vice Chairman Chung Hyun-ho (65), once called the group's No. 2. As Chairman Lee Jae-yong of Samsung Electronics pushes a sweeping reshuffle, the principle of a "young Samsung" looks set to continue in follow-up appointments.
The business community's focus is on whether Roh Tae-Moon (57), head of the Mobile eXperience (MX) Business (president), who has monopolized the title of youngest promotee within Samsung Electronics, will be promoted. Roh, who has also doubled as chair of the Quality Innovation Committee, has served as acting head of the Device eXperience (DX, finished goods) division since April. Attention is on whether he will be promoted to vice chairman in the year-end reshuffle to form a "two-top vice chairman system" with Jun Young-hyun, vice chairman and head of the Device Solutions (DS) division.
◇ Youngest-ever: senior vice president in the 30s, executive vice president in the 40s, business unit chief in the 50s
Born in 1968, Roh is a bona fide engineer who majored in electronic engineering at Yonsei University and earned his master's and doctorate in electrical and electronic engineering at Pohang University of Science and Technology POSTECH. Roh joined Samsung Electronics in 1997 and, while working in the Wireless Business Division, became synonymous with the youngest promotions. Ten years after joining, in 2007, he pinned on his star as the youngest senior vice president (age 39). Three years later, in 2010, he was promoted to vice president at age 42. Recognized for his contribution to developing the Galaxy S, he received the "Proud Samsung Person Award" in 2010, which comes with a special promotion of one rank. He then became the youngest executive vice president (age 44) in 2012 and, at the end of 2018, was promoted to the youngest president (age 50), 21 years after joining. In 2020, at age 52, he was appointed head of the Wireless Business Division (now MX Business).
Kim Jun-ik, professor of business administration at Konkuk University, said, "President Roh Tae-Moon is a figure who has written a history of ultra-fast promotions within Samsung, and considering that he symbolically represents Samsung Electronics' pursuit of performance-oriented and bold innovation, his taking the vice chairmanship would also be highly meaningful."
◇ MX Business's rising presence
So far, no sitting MX Business head has successfully been promoted to vice chairman. In the case of former Vice Chairman Shin Jong-kyun, he was promoted while serving as head of the IM (IT and Mobile) division, the predecessor of the MX Business, but the appointment at the time was as vice chairman in charge of talent development. As the MX Business continues strong results and its presence swells inside the company, there is reportedly talk within Samsung Electronics that "it's time for the MX Business to be led by a vice chairman."
Some also view that rather than President Roh, as a president, leading peers such as Choi Won-joon, head of MX Business Development Office and head of Global Operations (president), and Yong Seok-woo, head of the Visual Display (VD) Business (president), it would be better for him to exercise leadership as vice chairman to aid decision-making.
When Roh was appointed head of the MX Business in 2020, the MX Business was not in good shape. Due to the onslaught from Chinese firms, sales at the IM division, the predecessor to the MX Business, fell below 100 trillion won. After Roh took over as head, MX Business sales reached 109.3 trillion won in 2021, and in 2022, as demand suppressed by COVID surged, they hit 120.8 trillion won. This year, cumulative sales reached 100.3 trillion won through the third quarter. The "Galaxy Z Fold7 and Flip7," released on July in, were hits, increasing the share of flagship product sales. The Galaxy S25 series, released in Feb., has also been selling steadily. Assessments say strengthened camera and artificial intelligence (AI) performance opened consumers' wallets. The securities industry expects the MX Business to post sales in the high-120 trillion won range this year.
By contrast, over the same period, the DS (semiconductor) division, which accounts for the largest portion of Samsung Electronics' results, has tended to fluctuate with IT market conditions. DS division sales were 98.5 trillion won in 2022, then plunged to 66.6 trillion won in 2023. They recovered to 111.1 trillion won last year. In 2023, it even posted an operating loss of 1.49 billion won.
The MX Business also faces a tough situation due to pressure from Apple and low-priced Chinese brands, but the prevailing view is that President Roh's contribution has been significant in making today's MX Business what it is. He is a smartphone development expert who led the development of the Galaxy series and built the Galaxy legend. In the Wireless Business Division, he led the development of key smartphones, including the Galaxy S series and the Note series. A Samsung Electronics official said, "There is no disagreement that President Roh is a key figure who, based on technological leadership, has helped strengthen the global competitiveness of the mobile business."
◇ The key figure who opened the era of Generative AI smartphones
That said, it is disappointing that since Roh began acting as head of the DX division in April, there have been no distinct achievements yet. Still, it is true that Roh was also the key figure who took the lead in building the AI ecosystem in Samsung Electronics smartphones. Last year, through the Galaxy S24, he opened the era of Generative AI smartphones and helped shift the smartphone paradigm from apps and touch to AI agents.
Hwang Yong-sik, professor of business administration at Sejong University, said, "In the era of digital transformation, what can ride out the waves amid an enormous storm of change is ultimately youthful drive," adding, "He could play a role in expanding the AI transition seen in mobile across Samsung's diverse product lineup." He went on, "Park Hark-kyu , a finance expert, was appointed head of the Business Support Office that oversees the group's strategy, and the harmony between a finance expert and a bona fide engineer is expected to produce synergy."