Samsung Electronics is navigating a major leadership transition following the unexpected death of co-CEO Jong-hee Han on March 25, 2025. This event has sparked discussions about potential changes to Samsung’s unique co-CEO management structure.
Samsung’s Co-CEO System Under Scrutiny
Samsung Electronics has utilized a co-CEO leadership model since 2018, with two executives jointly managing the company’s vast operations. This approach differs from the single-CEO structure common among major tech firms like Apple, Microsoft, and NVIDIA.
The co-CEO system was designed to provide specialized leadership for Samsung’s diverse business units:
- Jong-hee Han oversaw the Device eXperience (DX) division, encompassing consumer electronics, mobile devices, and home appliances.
- Young-hyun Jun leads the Device Solutions (DS) division, focusing on semiconductors and the company’s memory chip business.
However, Han’s sudden passing has left Samsung with only one active CEO, prompting industry analysts to question the long-term viability of the dual leadership model.
Immediate Leadership Challenges
Samsung faces several short-term hurdles in the wake of Han’s death:
- Continuity in the DX Division: The consumer electronics and mobile device segments require strong leadership to maintain Samsung’s market position against fierce competition.
- Strategic Decision-Making: Major initiatives and long-term planning may be delayed without a second top executive to provide input and balance.
- Investor Confidence: The company must reassure shareholders that it can maintain stability and growth during this transition period.
Potential Paths Forward
Samsung has several options as it considers its future leadership structure:
Appoint a New Co-CEO
Samsung could maintain its current system by promoting an internal candidate to fill Han’s position. Potential contenders might include:
- TM Roh, President and Head of Mobile Experience Business
- Kyehyun Kyung, President and CEO of Samsung Electro-Mechanics
This approach would preserve the specialized focus of the co-CEO model but may not address underlying questions about its effectiveness.
Transition to a Single CEO Structure
Samsung could follow the lead of other tech giants by consolidating power under a single chief executive. This might involve:
- Elevating Young-hyun Jun to sole CEO
- Appointing a new CEO from within or outside the company
A unified leadership structure could streamline decision-making and clarify the chain of command.
Implement a New Leadership Model
Samsung might use this opportunity to reimagine its executive structure entirely. Possibilities include:
- Creating a triumvirate leadership team with specialized roles
- Establishing a rotating CEO position among top executives
Any significant change would likely require careful consideration and a transition period to ensure smooth implementation.
Factors Influencing the Decision
Samsung’s leadership choice will be shaped by several key considerations:
- Business Performance: The company’s financial results and market position in key segments will impact the urgency for change.
- Technological Landscape: The rapidly evolving fields of AI, 5G, and advanced semiconductors demand agile and informed leadership.
- Corporate Culture: Samsung must balance its traditional hierarchical structure with the need for innovation and quick decision-making.
- Global Competition: The company’s strategy against rivals like Apple in consumer electronics and TSMC in semiconductors will play a role.
Next Steps for Samsung
In the immediate future, Samsung is likely to:
- Appoint an interim leader for the DX division to ensure continuity.
- Conduct a thorough review of its leadership structure and succession plans.
- Communicate clearly with employees, investors, and partners about its path forward.
- Make a definitive announcement about its long-term leadership strategy within the next few months.
Samsung’s response to this leadership challenge will be closely watched by the tech industry and investors alike. The company’s decision could signal broader shifts in how large, diversified technology conglomerates approach top-level management in an era of rapid innovation and global competition.