Samsung Electronics' New CFO Park Soon-chul...Breaking through uncertainty 'special assignment'

[Korea Financial Times, Kim JaeHun] Samsung Electronics has appointed Park Soon-chul, Vice President of the Management Support Office Support Team of Samsung Electronics' DX Division, as its new Chief Financial Officer (CFO).

Vice President Park Soon-chul is from Samsung Electronics’ Future Strategy Office and is known as the group’s ‘financial expert.’ He is considered to be the right person to manage Samsung Electronics’ investment strategy, which is facing internal and external uncertainties, as he has spent most of his career in the management support organization as well as the company’s control tower.

Vice President Park Soon-chul was born in 1966 and graduated from Yonsei University (Department of Public Administration). He worked at the Samsung Electronics UK subsidiary support team and then joined the Future Strategy Office strategy team. After being promoted to managing director in 2015, he worked in the Management Support Office support team and the Wireless Business Division support team (2018). He was assigned to the Business Support TF from 2020, when he was promoted to senior managing director, to 2022.

He was promoted to Vice President in 2022 and served as the head of the Mobile Experience (MX) Business Unit Support Team until last year, and from late 2023 until recently, he served as the head of the Support Team under the Management Support Office.

In the regular personnel reshuffle held in November last year, he was appointed to the CFO position that became vacant when the existing CFO, President Park Hak-gyu, moved to the Business Support TF.

It has been nearly 15 years since Samsung Electronics has had a CFO at the executive vice president level since 2009. As Samsung Electronics laid the groundwork for a generational change by placing proven leadership at the forefront during this year’s regular personnel reshuffle and appointing future key leaders, the appointment of Vice President Park Soon-chul as CFO is interpreted as a move similar to this.

Vice President Park Soon-chul is known to be trusted by the highest levels of the group as he has worked in all of Samsung Electronics’ management control towers, including the Future Strategy Office and the Business Support TF. In addition, he has spent most of his career in individual business unit support teams. Samsung Electronics has separate support teams for each of its business units, and these support teams assist the management of each business in decision-making, including setting business goals and evaluating performance.

In addition, the Samsung Electronics CFO is a high-status position within the group, as an inside director who participates in major group decision-making. Vice President Park Soon-chul is expected to review strategies for each business division and focus on finances such as investments.

Last year, Samsung Electronics has been mired in crisis talk as its flagship semiconductor business slumped. This year, the company still faces uncertainty, with the global recession continuing and a second Trump administration in the U.S. that has vowed to prioritize its own country. That's why Park Soon-chul, the vice president of Samsung Electronics, has a crucial role to play.

Park's top priority will be investment strategy in the semiconductor sector. In its Q3 earnings report, Samsung said it will focus on restoring competitiveness in AI semiconductors such as HBM (high bandwidth memory), improving foundry yields, and rebounding in system semiconductors such as Exynos. The intention is to expand HBM investment and revive the foundry business through investment efficiency.

Samsung Electronics has made changes to its financial lineup in this periodic reshuffle and established a support system for Vice President Park Soon-chul. For example, former CFO Park Hak-kyu was moved to the Business Support TF, a group control tower. President Park Hak-kyu is also a finance expert from the Future Strategy Office and is considered one of Samsung Electronics' core executives. His move to the Business Support TF will strengthen the finance department's capabilities.

Here, vice president Kim Dong-wook, who has proven his competence over the years, has been retained to head the finance team under the CFO. Mr. Kim has been a member of the finance team since his promotion to senior vice president, and has played a key role in maintaining Samsung Electronics' strong financial position by accumulating cash assets despite the sluggish semiconductor business.

The U.S. government's recent decision to provide Samsung with $4.745 billion (about KRW 6.9 trillion) in semiconductor subsidies is also expected to ease Park's burden. The incoming second Trump administration is opposed to subsidizing foreign semiconductor companies. Since this contract was signed before the Trump administration took office, it will receive full benefits.

Samsung is currently building a new semiconductor plant in Taylor, Texas, and is investing about $44 billion (about KRW 60 trillion) in the U.S. through 2030. Samsung's subsidy-to-final investment ratio is 12.7%, the highest among major semiconductor companies, including SK Hynix (11.8%), TSMC (10.7%), and Intel (7.8%).

Kim JaeHun (rlqm93@fntimes.com)