Huge Personnel Change to Be Expected for Large Corporations

Oct 24, 2016

Major corporations are about to face huge personnel change as they are getting ready for yearly regular personnel change. As global economy is facing low-growth, major corporations in South Korea are also going through slump. There are also corporations that are facing with problems regarding quality of their products and investigations from prosecution. Financial industries are predicting that major renovation of personnel is going to take place for them to break through slumps.
According to financial industries on the 23rd, major corporations are going to carry out regular personnel change starting from end of next month. Some corporations such as Hyundai Motor Company and SK are predicted to push forward dates for their personnel change.
Major personnel changes are predicted for major corporations.
This is the first personnel change for Samsung Group after Vice-Chairman Lee Jae-yong became a registered executive. Innovative personnel change that will open up ‘new Samsung’ according to Vice-Chairman Lee Jae-yong is expected to take place. Although personnel change within group of presidents was not huge for the past 2 years, there is a reason that will bring huge change to group of presidents this year.
Personnel change that will rebuke people that were responsible for stoppage of sales of Galaxy Note 7s will be huge. Executives from Samsung Electronics as well as Samsung SDI that had supplied batteries who had participated in decision making are all subjected to personnel change. There is a high chance that size of overall executives will be reduced due to poor performance of Galaxy Note 7.
“Huge change is expected as this year’s personnel change is during a period of paradigm shift.” said a high-ranking official for Samsung Electronics. There will be more movement of positions rather than promotions.”

Huge Personnel Change to Be Expected for Large Corporations

As lack of sales and poor quality overlap, change for Hyundai Motor Company has already stated. It had already carried out two personnel change in this month alone and there will be more nonscheduled personnel changes before official personnel change takes place at the end of December. There will be more movement of positions rather than promotions as it is going through difficult times. To overcome internal slump, reorganization of groups as well as new personnel assignment are expected to solve deficiency in quality.
SK Group is emphasizing slump that is in as Chairman Choi Tae-won is comparing current management situation to preparation for war. Chairman Choi has not given any huge changes after coming back to management last year. However this year is different as he has come back to management after 2 years and has been emphasizing changes and innovations. SK Group is expecting that there will be huge changes to group of presidents and executives as well as major subsidiaries.
LG Group is also predicting personnel change. There will be huge personnel change within executives as Chairman Ku Bon-moo is wanting young and talented executives. LG Group is going to decrease executive positions that are doing same work and reorganize itself based on new businesses. Industries are also interested on what LG Group is going to do with LG Electronics’ MC (Mobile Communication) Business Headquarters that is slumping.
Lotte Group is expecting a personnel change that will overcome current trouble situation due to investigation from prosecution. Chairman Shin Dong-bin, who has avoided worst situation, is expecting to carry out huge personnel change to improve constitution and to bring back group to normal. Some people from Lotte Group are predicting that a generation change will take place faster than expected.
“Major groups are emphasizing more on changes and crisis than any other times.” said a high-ranking official from a financial industry. “Unlike last year when there were not huge changes, huge personnel changes are going to take place this year.”
Staff Reporter Kwon, Keonho | wingh1@etnews.com

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