Samsung Restructures Top Management Following CEO Han’s Death

Samsung Electronics announced on Tuesday that co-CEO Han Jong-hee passed away after suffering a heart attack, prompting a significant leadership shift within the company. The news comes just days after Jun Young-hyun, who was appointed as co-CEO during last week’s shareholders meeting, officially took on a dual role. With Han’s passing, Jun is now the sole CEO of the South Korean tech giant, which continues to face headwinds in the global semiconductor race and shifting trade dynamics.

Sudden transition at the top

The company, known for maintaining a co-CEO structure to oversee its semiconductor and consumer electronics divisions separately, now places full executive control in the hands of Jun Young-hyun. The leadership change was disclosed in a regulatory filing to the South Korean stock exchange. According to a company spokesperson, Han Jong-hee died on Tuesday in the hospital while undergoing treatment for cardiac arrest. He had been an integral figure at Samsung Electronics for nearly four decades, beginning his career in the television division and rising to become CEO in 2022.

Han also held a board position and was responsible for overseeing both consumer electronics and mobile devices. His deep involvement in developing Samsung's global television business made him a familiar figure in the industry. An analyst, speaking anonymously due to the sensitivity of the matter, noted that Han’s absence “could have some long-term impact on its business strategy, particularly in areas like marketing.”

Challenges in the semiconductor sector

Jun Young-hyun, who previously headed the company’s semiconductor division, is now tasked with guiding Samsung through one of its most competitive phases. Despite being the world’s largest memory chipmaker, Samsung Electronics has recently fallen behind rivals such as SK Hynix and TSMC, especially in high bandwidth memory (HBM) technologies that power AI applications. At the recent shareholder meeting, Han Jong-hee acknowledged shortcomings in adapting to the fast-evolving chip market, stating: “Over the past year, our company failed to adequately respond to the rapidly evolving AI semiconductor market.”

Samsung shares slipped by 0.5 percent on Tuesday, in line with broader market trends in South Korea, reflecting ongoing investor concerns over the company’s ability to rebound in critical tech sectors.

Impacts on other business segments

The leadership vacuum left by Han Jong-hee may also affect other key segments, including home appliances and mobile products. The company had already lost its smartphone market lead to Apple, and its consumer electronics division was under review for strategic realignment. Analysts suggest that Han’s passing could disrupt efforts to reorient marketing and operational strategies, particularly as Samsung navigates the implications of tariffs and ongoing trade frictions.

Han had told shareholders last week that 2025 would be a difficult year, emphasizing Samsung’s intention to respond flexibly through its global supply chain and production networks amid evolving trade policies.

Expansion into automotive electronics

Amid challenges in traditional markets, Samsung is looking to grow its footprint in automotive electronics. Chairman Jay Y Lee, currently in China, visited Xiaomi’s car manufacturing site in Beijing and the headquarters of BYD in Shenzhen, according to local media and social media photos. The company declined to comment on the chairman’s visit.

Jay Y Lee, who has faced multiple legal issues in recent years, was cleared in February of charges related to his succession of the Samsung Group, though prosecutors have appealed the ruling. His leadership will likely play a key role in guiding Samsung Electronics through this turbulent period.