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Samsung Restructuring Could See Electronics Division Stand Alone


Ownership of the big South Korean Chaebols is a tangled web of loosely aligned companies and single family ownership, Samsung is no exception. However, under pressure from investors, the company is now investigating the possibility of separating its Electronics business out from the rest of the business in order to promote greater visibility of the division's performance.

In the aftermath of the Note 7 debacle there were always likely to be changes to the way the Electronics division was run. Whilst this review doesn't guarantee anything will change it may well prove to be an opportunity for the Lee family to exert greater control over the division.

Nothing should be taken for granted though. The Chaebols have survived many attempts at reform from many different sources over the last four decades. Ownership and secrecy have remained constant over that period of time and its likely that any changes implemented as a part of this review will ensure that anything given up on one area is taken back in the other.

However, the fix for Note 7 type issues doesn't come from changing management structure, but through finding and fixing the errors that caused the issue in the first place. That should be the primary focus of everyone in the Electronics division right now.

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