Samsung considers splitting into two

Samsung has also come under pressure from foreign investors, including US hedgefund Elliott Management, to improve its corporate governance through the establishment of a holding company and to increase dividends for shareholders.

The move comes as the tech giant struggles to contain the fallout from a global recall of its Galaxy Note 7 smartphone prompted by exploding batteries.

Samsung said in a statement it would consider breaking the company into a holding firm and a producing and operating unit and would take at least six months to study the option.

Analysts said a split would give Samsung Electronics' Vice Chairman Lee Jae-Yong a tighter grip on the company through a holding firm.

Elliott and other investors have urged Samsung to set up a holding company as a way to address its complicated layers of cross shareholdings with sister companies.

They also said the company should increase dividends for shareholders.

Samsung said it would increase per-share dividends by 36 percent this year to 28,500 won.

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