The year-end personnel changes among major South Korean conglomerates are accelerating. Following early appointments by Hanwha Group and HD Hyundai, LG Group has begun business reports for its subsidiaries, revealing the schedules for the four major groups. Amid ongoing uncertainties in the artificial intelligence (AI) sector and global trade, attention is focused on when each group will finalize its leadership for next year's business plans and which sectors will receive support.
According to industry sources on October 19, Samsung Electronics is expected to conduct its executive appointments by late November. Traditionally, the company has held these appointments and organizational restructuring in early December, but in the past two years, it has moved this process to late November, suggesting a similar timeline this year.
Insiders at Samsung believe that this year's appointments will favor 'organizational stability' leaders who can quickly address deepening internal conflicts. Key figures such as Kim Cheol-ki, head of the DA division, and Lee Won-jin, head of the VD division, are expected to take on expanded roles to revitalize the struggling DX division and drive the transition to service and content platforms.
There is also a strong possibility that core technical talents will be deployed to maintain technological prowess and maximize profits in key businesses. Notably, Hwang Sang-jun, head of DRAM development, and Song Jae-hyuk, CTO of the DS division, are anticipated to take on significant responsibilities in the technology sector.
Another point of interest is whether Yeon Young-hyun, head of the DS division, and Noh Tae-moon, head of the DX division, will separate their dual roles. Both have held their current positions alongside leading their respective divisions for over two years. Choi Won-jun, COO of the MX division, is also mentioned as a strong candidate for the next head of the MX division after being promoted to president last March.
SK Group is expected to carry out its executive appointments between late October and early November. This timing aims to finalize the management team ahead of the CEO seminar scheduled for December 12-14, allowing the new leadership to clarify next year's business strategies and organizational restructuring. A significant restructuring is likely to occur in early December.
SK is expected to focus its appointments on evaluating the actual performance and profitability of business restructuring under the principle of 'merit-based rewards and punishments.' SK Hynix achieved record quarterly results in the second quarter, with sales of 79.3187 trillion won and operating profit of 60.5426 trillion won, driven by increased investments in AI servers. However, other subsidiaries face challenges, with SK On reporting an operating profit of 8.218 trillion won largely dependent on one-time gains from customer compensation. SKC, a materials subsidiary, also recorded operating losses in the second quarter, continuing its struggle with deficits.
Industry observers are paying attention to the potential promotion of SK Hynix CEO Kwak No-jung to vice chairman and the retention of SK On CEO Lee Yong-wook as part of targeted appointments. However, given the significant changes in leadership at major subsidiaries last year, this year's focus is expected to be on assessing the existing management's performance in improving business structures and recovering results, emphasizing stability and substance.
Another point of interest is whether Choi Chang-won, chairman of the SK Supex Council, will remain in his position. Since taking office, he has focused on business restructuring and securing financial soundness, and he is expected to continue overseeing ongoing projects in this appointment cycle. The group's commitment to strengthening substantive management across subsidiaries based on organizational stability and policy continuity is likely to be reaffirmed through this personnel change.
Hyundai Motor Group, which typically conducts year-end appointments later than the other major groups, is expected to proceed with its changes around December, similar to previous years. However, last year, it advanced its executive appointments to mid-November in response to the second term of the Trump administration.
This year's appointments may involve reallocating talent to enhance Hyundai's competitiveness and spread Kia's performance and strengths throughout the group. While Hyundai faces challenges with declining sales and profitability, Kia has performed relatively well, resulting in contrasting results.
There is also keen interest in the selection of leaders responsible for global operations and future vehicle strategies. The efficiency of global operations, software-defined vehicles (SDVs), robotics, and advanced air mobility (AAM) are expected to be key themes in this year's Hyundai Motor Group appointments.
* This article has been translated by AI.
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