Fighting fires: Samsung struggles to limit damage from smartphone recall

Fri Oct 7, 2016 11:43pm EDT
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(Correcting story first sent on Thursday without changes to text. Please note that the earlier text version went out with a set of pictures that have since been withdrawn.)

By Se Young Lee

SEOUL (Reuters) - Heated meetings, sacrificed holidays and teams monitoring social media round-the-clock to track whether there have been any new smartphone fires: Samsung Electronics is still desperately trying to limit the damage of a record global recall announced more than a month ago.

Samsung said most of the fire-prone Galaxy Note 7s have been recovered in major markets, including the United States and South Korea.

But the trouble is not over for either South Korea's largest listed company or mobile division chief Koh Dong-jin, who bowed in a public apology last month, less than a year into the job.

Samsung's hopes of finally getting ahead of the crisis took a knock on Wednesday. A replacement model began smoking inside a U.S. plane on Wednesday, the family that owns it said, prompting fresh investigations by safety regulators. [nL3N1CB3HC]

And on top of that, Samsung is being pressured by one of the world's most aggressive hedge funds, Elliott Management, to split the company and pay out $27 billion in a special dividend. [nL3N1CC055]

UNLUCKY TURN   Continued...

Koh Dong-jin, president of Samsung Electronics' Mobile Communications Business, speaks during a news conference in Seoul, South Korea, September 2, 2016.   REUTERS/Kim Hong-Ji/File Photo