Samsung Electronics has announced the sudden passing of its co-CEO, Han Jong-hee, at the age of 63 due to a heart attack.

His unexpected demise leaves Jun Young-hyun, who was appointed co-CEO last year, as the sole chief executive, leading the company at a critical juncture.

Han, who joined Samsung in 1988, played a pivotal role in shaping the company’s consumer electronics division, particularly in television manufacturing, where Samsung became a global leader. Since taking over as CEO in 2022, he had been instrumental in driving Samsung’s strategy in mobile devices and home appliances.

His sudden passing has raised concerns about the company’s strategic direction, especially as it faces increasing competition in the semiconductor and smartphone markets.

Samsung, the world’s largest memory chipmaker, has been grappling with declining earnings and stiff competition from rivals such as SK Hynix and TSMC, particularly in the artificial intelligence (AI) chip sector. Han had acknowledged these difficulties during his recent public address, stating, “I sincerely apologise for the recent stock performance not meeting your expectations. Over the past year, our company failed to respond effectively to the rapidly evolving AI semiconductor market.”

The impact of Han’s death was immediately felt in the financial markets, as Samsung’s shares dipped 0.5%, reflecting broader concerns over the company’s stability.

Jun Young-hyun, who was promoted last year to lead Samsung’s semiconductor division, now faces the challenge of steering the entire company. His leadership will be tested as Samsung tries to regain its footing in high-bandwidth memory (HBM) chip production, an area where it lags behind competitors.

The loss of Han also raises questions about Samsung’s future marketing strategy, particularly in the home appliance sector, which is facing rising trade uncertainties.

Despite this setback, Samsung remains focused on expanding its footprint in automotive electronics. As part of this strategy, Samsung chairman Lee Jae-yong is currently on a visit to China, where he has reportedly toured Xiaomi’s electric car factory in Beijing and BYD’s headquarters in Shenzhen.

However, the company declined to comment on the chairman’s visit, which is seen as a significant move in Samsung’s future business diversification efforts.

Samsung has been navigating complex geopolitical and economic challenges, including trade tensions and new U.S. tariffs under President Donald Trump. At last week’s shareholder meeting, Han had warned that 2025 would be a difficult year, stating that Samsung would “adapt to new U.S. tariffs by leveraging its global supply chain.”

With Han’s sudden absence, analysts predict that Samsung’s ability to handle these challenges will now come under even greater scrutiny.

Han Jong-hee’s passing marks the end of a remarkable four-decade journey at Samsung, where he played a key role in making it the world’s top TV manufacturer. He was set to attend a major product launch event on Wednesday before his untimely demise.