April 26, 2024

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[THE INVESTOR] Samsung SDS is speeding up its ongoing business restructuring that aims to split the company into IT and logistics businesses, according to industry sources on Dec. 13.

The company has reportedly received applications from employees who want to transfer to the firm’s affiliates -- Miracom, S-core, Secui and Multicampus.

Employees who move to the affiliates will receive incentives up to 30 million won (US$25,740).

Related:
Samsung SDS considers selling off home network systems business


Samsung SDS, however, denied speculations that the relocation is aimed at downsizing workforce.

“The transfer program is different from a retirement program. Only selected applicants will be relocated,” a Samsung SDS spokesperson said.

As part of the split-off scheme, the company’s US and Chinese branches have recently spun-off their IT services businesses.

Following the business separation, the IT services unit is expected to be merged with Samsung Electronics, while the logistics unit is likely to be acquired by Samsung C&T.

In the meantime, Samsung SDS announced last week it is considering selling off its home network systems business that mainly produces digital door locks.

The Dublin-based Allegion is cited as the likely bidder but other security solutions companies are also said to be interested in the business unit to take advantage of the Samsung brand name and its sales network.

Allegion declined to confirm the talks.

By Kim Young-won (0102wone@heraldcorp.com)