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Samsung Electronics is grappling with the sudden passing of its co-CEO, Han Jong-hee, who suffered a fatal heart attack on Tuesday. The 63-year-old executive, a pivotal figure in Samsung's global expansion, had been at the helm of the company's consumer Samsung Electronic leadership.
Samsung last year announced changes in the leadership of its memory and foundry chip divisions amid intense competition in the semiconductor space, appointing Jun as co-CEO and head of the memory chip arm. and mobile division since his appointment as CEO in 2022. His untimely death leaves Jun Young-hyun, who was named co-CEO in November last year, as the sole leader of the tech giant.
The news of Han's passing has sent ripples through the technology sector, as he was widely credited with spearheading Samsung's dominance in the television market. "Han was the key figure behind making Samsung's TV business influential on a global scale," said an industry analyst who spoke on condition of anonymity. He had also played a crucial role in navigating the company through a challenging economic landscape, particularly amid growing competition in the semiconductor and AI chip markets.
Han's final public appearance was at Samsung's annual general shareholders meeting on March 19 in Suwon, South Korea. During the meeting, he addressed investor concerns over Samsung's declining stock performance and struggles in the AI-driven semiconductor sector. "First and foremost, I sincerely apologize for the recent stock performance not meeting your expectations. Over the past year, our company failed to adequately respond to the rapidly evolving AI semiconductor market," Han had stated.
Samsung's chip division has faced increasing pressure from rivals such as SK Hynix and Taiwan Semiconductor Manufacturing Company (TSMC), particularly in the high-bandwidth memory (HBM) chip sector. These chips are critical for AI processing, an area where Samsung has lagged behind competitors. As of Tuesday, Samsung shares dipped 0.5%, mirroring the broader South Korean market's downturn.
Jun Young-hyun, now assuming sole leadership, has been tasked with reviving Samsung's semiconductor business, a division he has led since his promotion in 2024. Samsung has yet to announce Han's successor in the consumer electronics division, but analysts speculate that a restructuring may be imminent. "With his sudden passing, there could be long-term implications for Samsung's business strategy, particularly in areas like marketing and home appliances," said a market expert.
Samsung Chairman Jay Y. Lee, currently in China for the China Development Forum, has yet to publicly comment on the leadership transition. His visit included stops at Xiaomi's car factory and BYD's headquarters, signaling Samsung's strategic interest in automotive electronics. Meanwhile, Samsung's future direction remains under scrutiny as it navigates an increasingly competitive global market without one of its most influential leaders.
