With Samsung Electronics recently announcing disappointing preliminary financial results for the third quarter of 2024, the upcoming personnel and organizational restructuring at the end of the year has garnered major attention. Reports suggest that Samsung may undertake substantial changes in its executive ranks, with one notable figure being Joo-sun Choi, president and CEO of Samsung Display (SDC).
According to a recent report from South Korea's Asia Today, Choi has successfully led SDC over the past four years, achieving impressive performances. For instance, SDC decisively ended its LCD panel business and achieved great results in the small-to-medium-sized OLED panel sector. Due to SDC's strong performance, it even provided a loan of around KRW22 trillion (approx. US$16.3 billion) to its parent company Samsung Electronics in 2023.
Before taking charge of Samsung's display business, Choi held key positions such as Head of the DRAM development room at Samsung and is widely recognized as a semiconductor industry expert. Recent market rumors indicate that due to his successful leadership at SDC, which widened the gap between SDC and its competitors, there is a high likelihood that he could "return" to rescue Samsung's semiconductor division, which is currently facing severe crises.
Traditionally, Samsung's two main performance pillars have been the Device Solutions (DS) division, responsible for semiconductor-related businesses, and the Mobile Experience (MX) division, responsible for mobile devices.
However, in 2023, the DS division reported losses of nearly KRW15 trillion, casting a shadow over Samsung's reputation. In contrast, SDC, responsible for the panel component businesses and part of the DS division, generated over KRW5.5 trillion in operating profits, becoming a cornerstone for Samsung's overall performance.
Industry insiders point out that Choi led the efforts to improve SDC's operational efficiency and was therefore credited for significantly enhancing SDC's performance. He transitioned from the semiconductor division to SDC in 2020 and became president within just one year.
Since Choi assumed the presidency of SDC in 2021, the company's performance has continued to grow, with annual operating profits rising from approximately KRW2.2 trillion in 2020 to KRW4.4 trillion in 2021. It further reached KRW5.9 trillion and KRW5.5 trillion in 2022 and 2023, respectively.
South Korean industry sources believe that SDC's success can be attributed to Choi Joo-sun's leadership, particularly his decisive move to exit the LCD panel business, which was crucial for improving the company's situation. As early as 2020, SDC decided to sell its deteriorating LCD panel business. This swift adjustment allowed SDC to strengthen its competitive edge in the OLED sector. By 2023, SDC held a nearly 76% market share in the IT OLED market and a 46% market share in the smartphone OLED market.
Looking ahead to 2024, despite facing downturns in the panel industry and fierce competition from Chinese manufacturers, SDC's performance appears to remain superior to its peers. Its third-quarter operating profits are projected to exceed KRW1.4 trillion while fourth-quarter profits could reach between KRW4 to 5 trillion. If these forecasts hold, SDC's annual operating profit for 2024 could surpass the KRW5 trillion mark.
Given Choi's extensive background in semiconductors and his remarkable performance at SDC, there is a strong possibility that he may be reinstated to an executive position at Samsung during the personnel adjustments at the end of 2024.
However, some argue that considering the recent appointment of Yong-hyun Jun as head of the DS division in May 2024, whether Choi Joo-sun will indeed "return" to Samsung Semiconductor remains to be seen.
