South Korea's Samsung Electronics, the world's largest maker of flat screens and memory chips, on Friday promoted the chairman's only son to president as the founding family tightened its hold.
Jay Y. Lee, 42, son of chairman Lee Kun-Hee, was previously executive vice president. He will retain his role of chief operating officer, the company said in a statement.
At the same time Lee Boo-Jin, 40, the chairman's eldest daughter, was named president and CEO of the Hotel Shilla affiliate and president of the de facto holding company Samsung Everland.
Samsung Electronics is the flagship of the Samsung group, which links dozens of affiliates and accounts for nearly 20 percent of the country's gross domestic product.
The move comes as Samsung Electronics competes with Hewlett-Packard to be the world's biggest technology firm by revenue, and looks for new growth engines in an increasingly competitive industry.
The firm is also the world's second largest maker of mobile phones after Nokia.
It said the changes were intended "to better prepare for the future in the rapidly changing business environment of the 21st century".
Chairman Lee Kun-Hee, who is the country's richest man, had confirmed last month that his son would take the new post in a year-end reshuffle.
Current president Choi Gee-Sung, 59, was promoted to vice chairman and will continue as chief executive officer.
"Today's appointments are aimed at leading the way through the rapid changes of the 21st century," the company said in a statement.
Jay Lee "is expected to continue to strengthen the competitiveness of Samsung's strategic businesses and to lay the foundation for Samsung's future new growth businesses".
After the changes were announced, Samsung Electronics shares jumped as high as 4.4 percent to 897,000 won (784 dollars).
"In addition to the expected turnaround in the global liquid crystal display industry where Samsung is the leader, today's news that the company conducted a management reshuffle is boosting Samsung shares," said HI Investment and Securities analyst Lee Sang-Hun.
"Investors hope the new generation of Samsung leaders, including Lee Kun-Hee's son Jay Lee, will actively seek new growth engines," the analyst told Dow Jones Newswires.
Samsung, which means "Three Stars", was launched in 1938 when Lee Byung-Chull, the son of a wealthy landowner, opened a trading company. Samsung Electronics began operations in 1969.
The founder's son Lee Kun-Hee, now 68, led Samsung for almost 20 years and was widely credited with turning it into a global brand.
He stepped down in April 2008 after being convicted of tax evasion but returned as chairman of Samsung Electronics in March after receiving a presidential pardon.
Samsung Electronics reported annual earnings of more than eight billion dollars last year, along with record sales. It employs 164,600 people in 61 countries.
Also Friday, the group announced it will set up a new organisation called the Samsung Corporate Strategy Office to manage group-wide affairs.
