Samsung replaces mobile chief Shin as smartphone unit struggles

Samsung Electronics Co. promoted Koh Dong Jin to president of the company’s smartphone business, taking over from Shin Jong Kyun, as the unit has struggled to defend its global lead and increase profit for about two years. Shin remains a president and co-CEO of Samsung Electronics, Samsung Group said Tuesday as part of its annual management revamp. Shin has faced rising pressure to improve the business as Samsung Electronics is on pace for the lowest profit in four years. Phone shipments are headed for their second straight annual decline in the face of intensifying competition from Apple Inc. in the high-end segment and from cheaper device makers like Xiaomi Corp. in China. Shares of Samsung Electronics rose 1.3% to 1.3 million won as of 9:14 a.m. in Seoul. The stock has fallen 2% this year after a 3.3% decline last year. The management overhaul at Samsung’s affiliates coincided with a power transition to Lee family heirs. Chairman Lee Kun Hee was hospitalised last year following a heart attack. Lee Jae Yong, the only son of the ailing patriarch, has quietly steered the nation’s largest chaebol of more than 60 companies without being named chairman, leading a spree of deals and announcing the largest buyback ever at its key electronics unit. (By Jungah Lee/Bloomberg)