Samsung Electronics announced on Tuesday the sudden death of co-CEO Han Jong-hee, who passed away at the age of 63 due to a heart attack while receiving treatment for cardiac arrest at a hospital. Han's death has left Jun Young-hyun, who was recently appointed as co-CEO, as the sole leader of the tech giant as it grapples with underperforming chip sales and trade uncertainties.
Han, who took the reins as co-CEO of Samsung in 2022, was also in charge of the company’s consumer electronics and mobile devices divisions. His leadership helped shape Samsung's global presence, particularly in the television business, where he played a pivotal role in making the brand a household name worldwide.
Jun, who was promoted to head Samsung’s semiconductor division earlier this year, was named co-CEO just last week during the company’s annual shareholders meeting. He now assumes full control of the company at a critical time, as Samsung faces stiff competition in the artificial intelligence (AI) chip market, where rivals like SK Hynix and TSMC have outpaced the company.
In a filing to the stock exchange, Samsung confirmed that Jun would take over as the sole CEO following Han’s death. Samsung shares fell by 0.5%, reflecting the broader decline in South Korea’s stock market.
The company, the world’s largest maker of memory chips, has faced weak earnings in recent quarters, impacted by its struggles to keep up with the demand for advanced memory chips and contract chip manufacturing. These areas have seen strong growth driven by AI projects. Additionally, Samsung has lost its leadership position in the smartphone market to Apple.
Samsung has not yet named a successor for Han, who was also a board member. The company has traditionally maintained a co-CEO structure, with separate oversight of its consumer and semiconductor divisions.
Han’s passing is expected to have a lasting impact on Samsung’s business strategy, particularly in marketing and the performance of its home appliance division. Trade uncertainties, such as tariffs and escalating trade wars, may also complicate the company’s efforts to recover.
An industry analyst, speaking anonymously due to the sensitivity of the issue, said, "Han was the key figure behind making Samsung’s TV business influential on a global scale. His sudden passing could have long-term effects, particularly in marketing and other key areas."