As Samsung Electronics prepares for its 2026 regular executive appointments for vice president level and below on the 25th, it is said to be focusing on streamlining the DX (finished goods) businesses suffering from weak profitability and intensifying competition, particularly the DA Division in charge of home appliances and the VD (visual display) Division responsible for TVs.
There is word that this reflects the view that the winter for the home appliance business—where profitability is worsening due to weak demand, heightened competition with China, and changes in global distribution networks—will last longer than expected. In fact, on the 20th, Samsung Electronics notified each division of retiring executives, and the number of retiring executives in the home appliance business was reportedly larger than expected. Management diagnostics and audits conducted throughout the year were also reflected in these appointments.
According to the industry on the 24th, Samsung Electronics plans to finalize and announce executive appointments and a reorganization this week. On the 21st, Samsung Electronics announced top management appointments for four people, including one promotion to president and three job changes. Considering that follow-up executive appointments are typically carried out within two to three days after the new presidential lineup is formed, an announcement is expected this week, and inside and outside Samsung Electronics, the 25th or 26th is seen as likely.
As the scope of top management appointments was smaller than initially expected, the focus in executive appointments also appears to be on stabilizing the organization rather than sweeping renewal. However, changes are observed in executive lineups depending on the division. In particular, word inside and outside Samsung is that the number of retiring executives in the DA Division and VD Division is larger than initially expected. A senior Samsung official said, "Since last week, a significant number of retiring executives have been concentrated in the home appliance area."
However, Samsung Electronics' streamlining strategy for the home appliance business focuses not only on reducing executive headcount but also on business and organizational innovation through the use of artificial intelligence (AI). The difficulties in the TV and home appliance businesses are not unique to Samsung. Competitor LG Electronics is also carrying out voluntary retirement in its TV business, and China's TCL and Hisense are likewise going through a stagnant phase in terms of profitability.
An official in the electronics industry said, "One of the fundamental reasons for the profitability issues in Samsung Electronics' home appliance business is that manufacturers have come to occupy a disadvantageous position in the global distribution structure," adding, "In China, JD.com and Alibaba, and in Korea, Coupang and other distributors have gained a superior position over suppliers, significantly weakening Samsung's price bargaining power, and this is a situation that requires seeking solutions over a long period, not only in terms of product competitiveness but also through various response measures."
Meanwhile, there is analysis that in these executive appointments Samsung Electronics could also bring in talent who have delivered results in new technology fields such as AI, next-generation semiconductors, and 6G (sixth-generation mobile communications). In particular, the influence of President Roh Tae-Moon, who has also taken on the role of CEO as head of the DX Division, is expected to be strong. At IFA 2025 in Berlin this year, he told reporters, "Going forward, we must leverage AI across the board not only in business but throughout in-house processes," emphasizing the point.
Attention is also on potential personnel moves in the MX Division, which has maintained the highest sales scale and profitability within the DX Division for a long time. The DX Division is broadly divided into the DA Division handling home appliances, the VD Division handling TVs, and the MX Division in charge of smartphones, but traditionally, the DX head overseeing finished goods has always been a home appliance or TV expert. The fact that President Roh Tae-Moon, a smartphone expert, has come to oversee finished goods means the influence of the MX Division is highly likely to spread across the entire finished goods business.