Samsung shakeup overlooks one important component

Samsung Electronics nicely rearranged some deck chairs, but unhelpfully left a big one in place. As part of a significant restructuring, the $435 billion company will combine its mobile and consumer electronics units into one division overseen by rising star Han Jong-hee, who was also elevated to vice chairman and chief executive.

That simplifies some of the sprawl and brings in some fresh blood. Han, 59, is joined by another newly appointed co-CEO, Kyung Kye-hyun, who will head the all-important semiconductor division at a difficult time for the industry. The duo replaces three co-CEOs, who had been steering the ship since 2018.

There’s no mention, however, of Samsung's de facto boss Lee Jae-yong, known professionally in the West as Jay Y. Lee. After the scion’s conviction on bribery and other charges, he was released from prison on parole in August. Even though he is not allowed to sit on the board, he remains firmly in charge, particularly for important strategic decisions. Until there’s more clarity or accountability about his role, Samsung’s corporate governance will remain adrift.