[Edaily Reporter SOYEON KIM ] Samsung is expanding a system for regularly reporting a pool of CEO succession candidates to the board of directors to its major affiliates. The aim is to identify future executives in advance, strengthen board-level vetting, and enhance management continuity and stability. With Samsung’s year-end executive reshuffle approaching, this move is seen as an effort to strengthen transparency in executive appointments and promote responsible management.

According to business circles on the 25th, major SamsungElectronics affiliates, including SamsungElectroMechanics and SAMSUNG SDI CO.,LTD., plan to formally discuss the “report on CEO succession candidates” as an agenda item at their board meetings this week. This marks the expansion of the CEO succession candidate management system—previously operated by some affiliates—to major electronics affiliates.

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Previously, since 2022, SamsungElectronics and SAMSUNG C&T CORPORATION have regularly reported their CEO succession candidate pools to their boards of directors once a year. SamsungElectronics also addressed a related agenda item at its board meeting held on October 30 of last year. Financial affiliates, such as Samsung Life Insurance and SAMSUNG CARD CO., LTD., also operate a system in which they report to their boards on the status of CEO candidate pool management and the results of reviews on the appropriateness of management succession plans.

This system for cultivating and managing future leadership in advance is expected to gradually expand to other Samsung affiliates.

The core of this expansion lies in strengthening the board of directors’ role in the CEO succession management process. Rather than merely reviewing candidates just before the appointment of a CEO, the goal is to ensure medium- to long-term management stability by continuously managing and evaluating the pool of next-generation leadership candidates on an ongoing basis.

This move is considered significant as it enhances transparency in governance by regularly sharing the pool of CEO candidates with the board of directors. It also strengthens the board’s accountability and oversight functions during the executive appointment process.

It is noteworthy that this measure was implemented as the year-end regular executive appointments approach. SamsungElectronics is expected to carry out executive appointments and organizational restructuring in the middle to late part of next month. In order to respond to the growth of the artificial intelligence (AI) industry and changes in the global business environment, selecting executives who can strengthen the competitiveness of core businesses—including semiconductors—and secure future growth engines is more critical than ever.

However, this expansion of regular reporting by CEO succession candidates will not have an immediate, direct impact on the year-end personnel reshuffle. Given that it institutionalizes a system for mid- to long-term executive development and management, it is expected to place greater emphasis on strengthening Samsung’s leadership and board-centered, responsible management in the future.