Samsung Electronics has decided to withdraw its home appliance and TV sales business in China amid its struggle to shore up its presence in one of the world’s most important markets, industry sources said.
But its mobile, semiconductor and medical equipment businesses will remain in place in the neighbouring country, the sources said, reports Yonhap news agency.
Samsung has recently notified its vendors in China of its decision to end its home appliance and TV sales business there.
Samsung’s decision to pull out from China came as the Korean tech giant has been facing increased costs amid global uncertainties and losing ground against Chinese firms.
Samsung’s sales unit in China logged a net profit 168 billion won (US$116 million) last year, sharply down from the previous year’s 300 billion won in net profit.
Earlier, Samsung Electronics said it was reviewing a business reorganisation in the face of increased competition in the home appliance sector and tariff risks.
Earlier this week, Samsung, the world’s No. 1 TV maker, replaced its head of TV to tackle increasing challenges at home and abroad.
Meanwhile, Samsung has announced a leadership reshuffle, naming the new head of its visual display business to tackle current challenges.
Under the reshuffle, Lee Won-jin, who has been serving as the head of the global marketing office, will become the new official head of the business unit.
“Drawing on his track record of business success and market insight, he is expected to spearhead business turnarounds and identify new growth areas, thereby further strengthening the competitiveness of the visual display business,” the company said in a release.
Lee will take over the position of Yong Seok-woo, who has been newly appointed as the adviser to the head of the device experience division.
The management shake-up comes amid intense competition from Chinese manufacturers, who have been challenging South Korea’s long-standing leadership in the display market.
Lee is widely considered to have established the foundation of Samsung Electronics’ service business for its TV and mobile unit after joining the company from Google Korea in 2014.
He also contributed to strengthening the global competitiveness of Samsung Electronics as the head of global marketing, the company said.
