Samsung Electronics says co-CEO Han Jong-hee has died of cardiac arrest

SEOUL - South Korean tech giant Samsung Electronics said on March 25 that its co-chief executive Han Jong-hee had died of a heart attack, leaving newly-appointed boss Jun Young-hyun solely in charge of the tech giant as it revamps its underperforming chip business and navigates trade uncertainties.

Mr Han, 63, became CEO of South Korea’s biggest company in 2022 and was also in charge of its consumer electronics and mobile devices division.

Mr Jun was appointed as Samsung’s co-CEO just last week at its annual shareholders meeting following his promotion in 2024 to lead its semiconductor division, which has been lagging rivals like SK Hynix and TSMC in the global artificial intelligence chip market.

Samsung said in a stock exchange filing that Mr Jun would be the sole CEO of the company after Mr Han’s death.

Samsung shares were down 0.5 per cent in line with the broader South Korean market.

The world’s biggest memory chipmaker has been suffering from weak earnings and a sagging share price in recent quarters after

falling behind rivals in advanced memory chips and contract chip manufacturing,

which have enjoyed strong demand from artificial intelligence projects. Samsung has also ceded its smartphone market crown to Apple.

Mr Han, who was also a board member, died at a hospital on March 25 while being treated for cardiac arrest, a company spokesperson said, adding that a successor had not yet been decided.

The company has traditionally had a co-CEO structure that divides oversight of its consumer and chips divisions.

Mr Han joined Samsung nearly 40 years ago and built his career in its television business.

“Mr Han was the key figure behind making Samsung’s television business influential on a global scale,” said an analyst who declined to be identified due to the sensitivity of the subject. “With his sudden passing… there could have some long-term impact on its business strategy, particularly in areas like marketing.”

His absence could also potentially affect Samsung’s efforts to improve the performance of its home appliance division at a time when it has to deal with uncertainties involving tariffs and escalating trade wars, the analyst said.

At the shareholder meeting Mr Han chaired last week, he told investors that 2025 would be a difficult year and Samsung would flexibly respond to US President Donald Trump’s tariffs with its global supply chain and manufacturing footprints.

He and other executives were grilled by shareholders at the meeting after the company’s failure to ride an AI boom made it one of the worst-performing tech stocks in 2024.

In semiconductors, Samsung lags behind SK Hynix in so-called high-bandwidth memory chips that Nvidia and others rely on for AI graphic processing units.

“First and foremost, I sincerely apologise 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,” Mr Han had said at the meeting.

He was scheduled to attend Samsung’s launch event for new home appliances on March 26. 

Sources have said Samsung is also seeking to expand its presence in the automotive electronics market to drive new growth.

Samsung chairman Jay Y. Lee, who is in China this week to attend the China Development Forum, visited Xiaomi’s car factory in Beijing and BYD’s headquarters in Shenzhen, according to photos posted on Chinese social media app and local media reports.

Samsung declined to comment on Mr Lee’s trip to China.

Mr Lee has been dogged by lawsuits and scandals for the past decade, after his father Lee Kun-hee had a heart attack in 2014. In February, he was cleared of charges in a case related to his succession of the family-owned conglomerate, but prosecutors have appealed the court decision. REUTERS