Samsung Card (CEO Won Ki-chan) has started consigning or separating their non-major businesses. Although there are some predictions that this is the beginning of a process of Samsung Card being sold, Samsung Group has formally denied it. Along with separating part of their businesses, voluntary resignations will also take place within Samsung Card.
According to financial industries on the 29th, Samsung Card is going to either consign or separate 5 of their businesses such as traveling, wedding, shopping, store marketing, and education for planners. It already consigned their store marketing and recruiter consulting businesses to foreign businesses and is leaning towards separating their other businesses.
Samsung Card, which failed in the past to establish a credit collection subsidiary, is also separating its short-term credit (3 months credit) business. It is heard that Samsung Card is looking into a plan that will move 300 employees within credit business to South Korean private credit collection businesses.
It is highly likely that Samsung Card will push for two-track strategies by either consigning its businesses to foreign companies or moving all of its employees after establishing a separate subsidiary. Samsung Card will appoint an executive in current business as a president for a subsidiary and have corresponding employees move to this subsidiary. Samsung Card will guarantee 70 to 80% of wages for next 5 years for employees who move to a subsidiary and have employees who do not want to move to take voluntary resignations.
There are some predictions that this move by Samsung Card is a part of strategies by Vice-Chairman Lee Jae-yong to strengthen management structure of Samsung Group and this can indicate a signal of a process of Samsung Card being sold which has been denied by Samsung Group continuously.
“Although we are modifying parts of Samsung Card’s businesses, this does not mean that we are selling Samsung Card.” said a high-ranking representative for Samsung Group. “We are not considering about selling Samsung Card at all.” There is still a possibility that Samsung Group will try to eliminate some businesses of Samsung Card and start on reorganizing its affiliates that are related to financial matter.
There are some predictions that think that establishment project based on Samsung Finance is about to take place. Unlike insurance, some within Samsung Group criticized that Samsung Card’s tasks did not match with ‘Samsung Brand’. It is likely that Samsung Group will sell part of financial affiliates and add banks after changing financial affiliates insurance affiliates.
“This group restructure can be seen as consignment rather than separation.” said a representative for Samsung Card with emphasis. Samsung Card acknowledged that it already consigned their marketing and recruiter consulting businesses and is looking to consign wedding, traveling, and shopping businesses.
“We have decided to consign our marketing and recruiter consulting businesses.” said a representative for Samsung Card. “Although we are looking to consign other businesses, it is not a definite plan.”
“This is a plan to strengthen constitution of card businesses.” said a representative regarding the background of this business restructure. “We have decided to separate our businesses because if we consign our businesses to foreign businesses that specialize in corresponding tasks, not only can we improve quality of our services but we can also focus more on our card businesses.”
“We are planning to introduce ‘Support Program for Transfers’ that give certain amount of funding for employees who transfer.” said a representative regarding a plan for voluntary resignation. “There are some parts of a plan for voluntary resignation that are exaggerated.”
Samsung Card made it clear that it has not discussed anything about guarantee of employees keeping their jobs, dealing with resignation, and keeping of wages.
Staff Reporter Gil, Jaeshik | osolgil@etnews.com