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Samsung Splits in Two

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Turning up right at the we're-only-thinking-about-the-weekend hours of late Friday afternoon emerged some rather big news from Samsung...

The Korean mega-corp has announced it will be undergoing a major restricting operation to split the company into two divisions. The first is a 'Digital Media and Communications' division headed up by Choi Gee-Sung which will unite televisions, mobile phones, laptops, printers and other consumer tech and home appliances (so it's the part we're interested in). The second is a 'Device Solution' division which will be lead by current CEO Lee Yoon-woo and focus on the component, semiconductor and LCD panel production business (which is still quite interesting).
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"We needed to effectively respond to the current global recession," explained Samsung spokeswoman Hwang Eun-ju. She also revealed Samsung's top executives will be taking 20 per cent pay cuts.

The move comes just a week before Samsung announces its fourth quarter earnings and - while proactive - doesn't bode well. It also follows a third quarter which saw a 44 per cent fall in net profit when compared against the same period in 2007. In addition, the move is the first major restructure since then Samsung chairman Lee Kun-hee was indicted for tax evasion and given a suspended prison sentence.

As we've said before: 2009 is going to be an interesting year.

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