Samsung announced on Nov. 28 the launch of a new “Management Diagnosis Office” under the Samsung Economic Research Institute to evaluate and consult on the management of its affiliates. Choi Yoon-ho, President and CEO of Samsung SDI, will head the new office.
The move comes a day after Samsung’s executive reshuffle, which focused on revitalizing its semiconductor business. The new office signals the company’s intent to strengthen oversight and enhance operational efficiency across its affiliates.
The Management Diagnosis Office is expected to perform functions akin to those of the former Future Strategy Office, Samsung’s now-disbanded control tower that closely monitored affiliate operations. At its height, the Future Strategy Office’s Management Diagnosis Team was often referred to as “Samsung’s internal prosecutor.” After the office was dissolved in 2017, its auditing functions were distributed among individual affiliates, reducing their scope and influence.
Samsung described the new office as “a specialized consulting organization” that will evaluate management practices, organizational structures, and business processes at the request of affiliates, offering recommendations for improvement. It emphasized that the office would not handle audit functions but focus on enhancing business competitiveness and ensuring sound management.
Choi, a veteran in strategy and finance, brings extensive experience to his new role. He has held key positions, including roles in the Future Strategy Office’s Strategy Team, Samsung Electronics’ Business Support Task Force, and as CFO of Samsung Electronics. Most recently, he served as President and CEO of Samsung SDI. His appointment is seen as a move to intensify management evaluations and implement improvement initiatives across group affiliates.
Samsung also bolstered its internal structure with the recent reshuffle, appointing Park Hark-Kyu, another former Future Strategy Office member, to the Business Support Task Force, which serves as a control tower for Samsung’s electronics affiliates. Park previously led the Management Diagnosis Team and served as CFO for Samsung Electronics’ semiconductor and finished product divisions.
Since disbanding the Future Strategy Office, Samsung has adopted an autonomous management system centered on affiliate boards. However, critics argue that the company has struggled to capitalize on its once-renowned managerial strengths, with setbacks in core businesses, quality issues, and operational mishaps tarnishing its reputation as “Management Samsung.”
Samsung has established task forces for its three main business areas—electronics, construction and trade, and finance—to address affiliate-specific issues. However, these efforts have faced limitations. Last month, Lee Chan-hee, chairman of Samsung’s independent corporate compliance oversight committee, also underscored the need for a renewed control tower in the committee’s annual report, calling it essential for focused and strategic decision-making.
