– CEO, Mr. Young Hwan Kim to be in charge of both Semiconductor and Industrial Electronics Divisions
– Hyundai to Separate Industrial Electronics Division After Completion of Merger/Takeover of LG Semicon
HEI (President : Kim Young-hwan) which recently acquired the management control of LG Semicon. announced on 13th of July that it executed a reorganization for its semiconductor division management team, including the appointment of the new division president. HEI appointed Mr. Sang Ho Park, who is currently a vice president of IBM, as division president of the semiconductor division in order to quickly normalize business operation and strengthen competitiveness of the semiconductor business. And current CEO, Mr. Young Hwan Kim will be in charge of both Semiconductor and Industrial Electronics Divisions. In addition, HEI carried out a position reorganization for 10 executive officers of its semiconductor management team, promoting Mr. In Baek Jeon and Mr. Se Chung Kim respectively to Senior Executive Vice Presidents. Mr. In Baek Jeon will direct the Business Innovation Division and Mr. Se Jung Kim will be in charge of the Memory R&D Center. Mr. Sang-ho Park is a veteran executive who has about 25-year-experience in the high-tech. electronics industry, having started his professional career as engineer. As director, he managed marketing function of Test & Measurement Dept. and directed technical supplier management of Component and Technology Dept. in Hewlett-Packard for 16 years. And, in 1995, he moved to work for IBM as vice president in charge of Procurement Engineering, which was his last position before he was appointed to be the president of the semiconductor division. The new division president has contributed to the Korean memory manufacturers’ progress toward the world best memory chip maker, giving continuous advice for the technology and quality improvement. Furthermore, it is also expected that Mr. Park will prove his leadership to reinforce the semiconductor business’ competitiveness in such fields as R&D strategy, manufacturing, quality and marketing, etc., applying his knowledge and experience acquired through his long tenure with world-leading information system companies which have broad product group and application range. And this appointment would give the Korean semiconductor industry a great opportunity to experience the world class management practice. HEI also announced that it has decided to change its original schedule to separate its existing Industrial Electronics Division. The separation is now to be carried out after the completion of the semiconductor merger. Hyundai explains it is most important to carry out the merger as quickly as possible in order to maximize the synergistic effects that the merger will bring both companies, and in order for all business operations of both companies to be normalized as soon as possible. Hyundai plans to separate its Industrial Electronics Division after the official launch of the new merged company. Together with its announcement of its new division president appointment for the semiconductor division, and its change of schedule for the merger process, HEI also announced its “vision” for the new merged company, which is “to become a world-class semiconductor company that provides satisfaction to its customers, trust to its shareholders and rewarding work and pride to all its employees and executives.” In order to successfully and effectively implement the merger, both companies, while operating independently until the official merger, will focus efforts on thoroughly preparing and planning for the merger and completely eliminating all inefficient elements, in order to make the merged company a completely different and new corporation compared to the current, existing two companies. Armed with a greatly strengthened research & development capacity due to the merger, HEI will be able to work on securing the world’s top position in the DRAM field, and it will also be able to work on restructuring and building the non-memory business of its new merged company, based upon LG Semicon’s existing System IC business. This will help in balancing out the company’s current business structure, which is more focused on the DRAM area, so that it may equally develop in both the memory and non-memory fields. HEI also announced its plans for organization restructuring, through which it would clarify the rights and responsibilities of each “Product Group.” Hyundai also plans to bring in additional specialists or experts when necessary, and eventually change and improve its conventional and standardized rules, regulations and practices handed down from the past, so that it may leap forward and become the world’s leading semiconductor company. With these plans and visions in mind, HEI will also separate and strengthen the role and function of its CFO (Chief Financial Officer), in order to strengthen the company’s overall financial management system. Hyundai announced that it is also in the process of newly establishing an overall system for the company concerning its business management, finance and personnel management.
