SEOUL, South Korea--(BUSINESS WIRE)--Samsung Electronics Co. Ltd., one of the world's leading technology companies, today appointed Geesung Choi as its new CEO, as part of an organizational restructuring aimed to increase operating efficiencies and strengthen the independence of the company's business divisions.

Samsung also enhanced its C-suite by appointing Jay Y. Lee to the newly created position of Chief Operating Officer and Ju-Hwa Yoon as Chief Financial Officer. Yoon-woo Lee, currently Vice Chairman and CEO, continues only as Chairman of the Board of Directors.

In order to establish greater autonomy at the operating level, Samsung also announced it will be adopting a “company system” in which each business unit is managed similarly to a stand-alone company. The new alignments, both organizationally and at the executive level, create a more focused and responsive business structure.

“Samsung has recovered well over the past year, thanks to Yoon-woo Lee's leadership and a measured response to the global financial crisis,” said Mr. Choi, the incoming CEO. "With this forward momentum, we believe now is the time for us to make these important organizational changes to prepare for the challenges and opportunities ahead."

Samsung's consolidated operating profit for the first nine months of this year has reached 7.22 trillion Korean won (US$6.08 billion as of end of September 30) on sales of 97.05 billion won (US$81.69 billion as of end of September 30). This compares with a full year 2008 consolidated operating profit of 6.03 trillion won (US$4.8 billion) on sales of 121.29 billion won (US$96.5 billion).

Strengthened C-Suite

Effective immediately, the heads of all Samsung Electronics business divisions report to Mr. Choi and the C-suite. The new C-suite provides a more unified and efficient management team, consistent with global business models, and reflecting the executive structures of many leading multinationals.

“Our renewed profitability enabled us to think long-term - to make sure we can continue leading the market,” Mr. Choi said. “As a result, we've strengthened the C-Suite and created a new executive position - the COO - to help expedite decision making, improve efficiency, and mediate between our business units, ensuring that they work well together in meeting our customers' needs.”

Specifics on the executive appointments announced today are:

· Geesung Choi, named President and CEO of Samsung Electronics; previously President and head of the company's Digital Media and Communications Business.

Previous positions held by Mr. Choi include President of the Telecommunications Networks Business, and President of the Digital Media Business.

· Jay Y. Lee, named to the newly-created position of Chief Operating Officer; was promoted to Executive Vice President from Senior Vice President.

Previous positions held by Mr. Lee include Chief Customer Officer and Vice President-Strategic Planning.

· Ju-Hwa Yoon, named Chief Financial Officer; previously President and head of the Corporate Auditing Team.

Previous positions held by Mr. Yoon include head of the Management Support Team.

Independent Company Organizational Structure

Samsung's new organizational structure enhances the independence of the company's business divisions. The new alignment introduces a "company system" in which each business unit is managed similarly to a stand-alone company, with its own President and CFO. Outside Korea, subsidiaries responsible for components such as semiconductors and LCD panels will continue to operate as fully independent entities separate from Samsung’s IT and consumer electronics subsidiaries.

Previously Samsung had 10 operating divisions organized into two principal businesses - Digital Media & Communications and Device Solutions. The reorganization today replaces the two-business structure with seven independent companies under a single corporate entity and unified C-suite.

While creating greater autonomy at the operating level, the benefits of the new structure also include reducing the company's decision-making hierarchy from three to two stages, and supporting stronger focus and speed of execution in business and investment strategy. Customers will gain from increased independence in decision-making and faster speed to market.

From the first quarter 2010, Samsung will also adopt the International Financial Reporting Standards (IFRS), global accounting principles established by the International Accounting Standards Board (IASB) and practiced by many global corporations.

About Samsung Electronics

Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2008 consolidated sales of US$96 billion. Employing approximately 164,600 people in 179 offices across 61 countries, the company is recognized as one of the fastest growing global brands. Samsung Electronics is a leading producer of digital TVs, memory chips, mobile phones and TFT-LCDs. For more information, please visit www.samsung.com.