Samsung SDS Co., a logistics and IT solutions unit of South Korea’s largest conglomerate Samsung Group, said it will not spin off its logistics business this year as it had hinted last year and instead will focus on strengthening its overseas presence.

The company declared that it won’t be spinning off its logistics business process outsourcing (BPO) division this year in the 32nd general shareholders meeting held in Seoul on Friday. Samsung SDS has been reviewing a plan to spin off its logistics BPO unit to strengthen logistics competitiveness since June last year. The final decision on the review was scheduled to be disclosed in a regulatory filing on March 31.

“Securing management stability by adding new logistics bases abroad should come before spinning off the logistics business,” said Chung Yoo-sung, president and chief executive officer of Samsung SDS.

It has spun off logistics units from its overseas subsidiaries in Singapore, Brazil, the United States, and China since last year. Similar action will take place in its Indian unit. The company aims to expand its overseas logistics bases to 70 posts in 42 countries from current 49 posts in 29 countries by adding new logistics centers, said Chung.

Chung promised to boost stock price by strengthening the company’s competitiveness, continuing growth through mergers and acquisitions, and bolstering corporate value through improved communication with institutional investors at home and abroad.

The stock has been in a downward spiral when it became apparent the Samsung empire lost interest in Samsung SDS as Samsung Group’s de facto leader Jay Y. Lee shed about 2 percent of his stake in the company in January last year.

Shares of Samsung SDS ended Friday at 135,000 won ($120.29), down 12,500 won or 8.47 percent from the previous session.

By Oh Chan-jong

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