Samsung Group Accelerating Corporate Governance Structure Reform

amsung Electronics vice chairman Lee Jae-yong is to be appointed as a director of the board at its shareholders’ meeting scheduled for October 27. Then, a change in the governance structure of the Samsung Group is likely to pick up some speed. The change is expected to be led by two sides, one being its manufacturing subsidiaries including Samsung Electronics and Samsung C&T and the other one being a financial holding company with Samsung Life Insurance at the top of it. It is likely that each of Samsung Electronics and Samsung C&T will be divided into business and investment arms and then the two investment arms will be combined with each other for the creation of the de facto holding company of the group. It is Samsung Electronics that is at the center of the change. According to industry sources, Samsung Electronics is expected to be split into the two arms and then the investment arm is to govern the business arm of Samsung Electronics and the other electronics subsidiaries like Samsung Electro-Mechanics, Samsung SDI and Samsung SDS. Samsung C&T is predicted to undergo a similar process. In short, the integrated investment arm is to be at the top of the holding company to govern the Samsung Group’s non-financial subsidiaries such as the business arm of Samsung Electronics, the other electronics companies, its biotech companies, etc.