Why Lee Kun-hee chose Kim Soon-taek

Why Lee Kun-hee chose Kim Soon-taek: New Samsung 'control tower' is pathfinder

Kim Soon-taek, right, the new head of Samsung Group’s revived Strategic Planning Office (SPO), accompanies then-Samsung Group Chairman Lee Kun-hee, who is now the chairman of Samsung Electronics, during Lee’s visit to a display exhibition in Yokohama, Japan, in this 2006 file photo. Kim was formerly CEO of Samsung SDI. / Korea Times file This is the first in a three-part series about recent changes within Samsung Group and the impact of such changes. ― ED. By Kim Yoo-chul After Samsung Group recently made an official announcement to revive its ill-reputed Strategic Planning Office, a group-wide control power, it raised questions ― whether Korea’s largest conglomerate would revert to its old ways. A significant number of suspicions were cleared when Kim Soon-taek, Samsung Electronics vice chairman, was appointed to take charge of it. Kim has been responsible for finding and fostering the group’s new growth engines. He is also credited with turning around the once loss-making plasma business by successfully launching AM OLED and battery businesses. He is nicknamed “task master,” according to Samsung officials. ``Although he has worked for Samsung all his working career, Kim is not a member of the old guard that is represented by a top-down command structure,” a senior Samsung executive, asking not to be identified. ``He is ready to ask subordinates on important issues and reflect them in a decision-making process,’’ added an employee at Samsung SDI on the condition of anonymity. Born in 1949, Kim joined Samsung in 1972 after earning a bachelor’s degree in economics from Kyungbuk National University. At the same time, Kim knows boss Lee Kun-hee’s intentions well from his experience. Kim moved to the group’s top secretary office in 1978 and worked as chief secretary for Lee from 1991 to 1997. After two years involvement in Samsung’s North America business from 1997, Kim was the chief executive at Samsung SDI from 1999 to November last year. ``He has experience in planning and management, though the Strategy Planning Office was headed by those with finance-related backgrounds,’’ said another Samsung executive. Bold decision Kim drew Lee’s attention not just for his tour of duty as the boss’ secretary but for a job well done at Samsung SDI ― the Samsung Group’s display affiliate. ``SDI had been reeling from big operating losses from the CRT and plasma display businesses,’’ said an official at SDI’s plant in Cheonan, south of Seoul, where it runs the AM OLED facilities. “He turned it around.” OLED is the next-generation flat-screen technology currently used in small-sized digital applications such as handsets. Unlike passive matrix or PM OLED technologies, AM OLED ones are advanced in terms of productivity and brightness. Japanese display majors had been touting the technologies but failed to yield visible results mainly due to higher development costs and lower production yields. Kim, who was desperate to find SDI’s new growth engines, was pushing the display business with the help from Samsung Electronics to create a Samsung Mobile Display (SMD). In the plasma businesses, Kim handed over SDI’s marketing edges to cash-rich Samsung Electronics for better management, last year. Now, SDI’s plasma unit is on a stable track thanks to the rising shipments of large-sized panels for 3D TVs. Kim turned his eyes to advance into the highly-lucrative rechargeable battery business as part of its plan to seek the next growth engines. SDI is supplying its lithium-ion batteries to handset majors that include Nokia, HP and Dell, while its joint battery venture with Germany’s Bosch ― SB LiMotive ― is set to supply car batteries amid green initiatives by governments. ``Batteries have emerged as Samsung Group’s next top driver. Such changes were all made under the realm of Kim as the CEO of SDI, which is enough to give the cue to Samsung Electronics Chairman Lee for more roles,’’ said the executive. ``Kim is bold in decision-making. He is also focusing more on field-driven experiences rather than spending time in the office,’’ the executive added. Under the chief of the new office, Kim will directly handle Samsung’s next cash-cows. Samsung earlier said it is planning to spend at least 23 trillion won for five sectors which it wants to effectively nurture.

yckim@koreatimes.co.kr