Sudden Leadership Shift at Samsung, Han Jong-hee dies of Cardiac Arrest
Samsung Electronics announced on Tuesday that its co-CEO, Han Jong-hee, has died of a heart attack. His passing leaves newly appointed co-CEO Jun Young-hyun as the sole leader of the company. This transition comes at a critical time as Samsung works to revamp its struggling semiconductor division and navigate global trade challenges.
Han, 63, had been with Samsung for nearly four decades, shaping the company’s global dominance in television manufacturing. He became CEO in 2022, overseeing the consumer electronics and mobile devices division.
Challenges Ahead for Samsung
Jun Young-hyun was appointed as Samsung’s co-CEO just last week at the company’s annual shareholder meeting. He was previously promoted in 2024 to lead the semiconductor division, which has fallen behind rivals like SK Hynix and TSMC in the artificial intelligence (AI) chip market.
Following Han’s passing, Samsung confirmed in a stock exchange filing that Jun will serve as the company’s sole CEO. Samsung shares declined by 0.5%, mirroring broader trends in the South Korean market.
Samsung has faced declining earnings and a weak stock performance in recent quarters. The company has struggled in advanced memory chips and contract chip manufacturing, both of which have seen high demand due to AI advancements. Additionally, Samsung lost its position as the world’s top smartphone maker to Apple.
Uncertainty in Business Strategy as Han Jong-hee Passes Away
Han’s sudden death raises concerns about Samsung’s long-term business direction, particularly in marketing and home appliances. Analysts suggest that his absence could impact strategic decisions at a time when Samsung is facing uncertainties related to tariffs and trade disputes.
At last week’s shareholder meeting, Han acknowledged the difficulties ahead, stating that 2025 would be a challenging year. He assured investors that Samsung would adapt to US President Donald Trump’s tariffs through its global supply chain and manufacturing operations. However, shareholders criticized the company’s failure to capitalise on the AI boom, making it one of the worst-performing tech stocks last year.
In the semiconductor industry, Samsung lags behind SK Hynix in producing high-bandwidth memory (HBM) chips, which are essential for AI applications. Han had publicly apologised for Samsung’s inability to respond effectively to the rapidly evolving AI chip market.
Samsung Eyes New Growth Areas
Han was scheduled to attend a launch event for Samsung’s new home appliances on Wednesday. His passing may affect the company’s efforts to improve its home appliance division. Meanwhile, Samsung is also seeking to expand into automotive electronics to drive new revenue streams.
Samsung chairman Jay Y. Lee is currently in China, attending the China Development Forum. Reports suggest he visited Xiaomi’s car factory in Beijing and BYD’s headquarters in Shenzhen. Samsung declined to comment on his visit.
Lee has faced legal battles for years, following his father’s heart attack in 2014. Although he was recently cleared of charges related to his succession, prosecutors have appealed the court’s decision.
With inputs from Reuters