Samsung, the South Korea's technology dominant, came under fire yet again as the Seoul Economic Daily recently reported that the tech mammoth is planning to split itself into two companies. Also, it is important to note that the move comes as the tech giant is currently facing increasing amount of pressure from Elliot Management, an activist Hedge fund.

Subsequently, the report suggested that the company's board of directors plan to meet tomorrow to publicly announce the decision. Additionally, the news has spread negative sentiments in the forex market as the spin-off could negatively impact the company's shares. Also, the Korea Exchange separately approached the tech mammoth to comment on whether it has plans for the spin-off or not. However, the company refused to make any immediate comment on the reports that are swirling in the tech space.

Interestingly enough, the US activist hedge fund requires Samsung Electronics to divide into an operating company and holding vehicle for ownership purposes, pay approximately $26 billion in a special dividend, promise to offer at least 75% of free cash flow to its investors and agree to appoint independent directors.

Moreover, the tech behemoth has been facing increasing backlash from its customers because of the Note7 fiasco. Adding to that, it is pretty clear that the company is also facing a significant amount of pressure from its main rival, Apple Inc (NASDAQ:AAPL). Additionally, it was also recently reported that the company lost its spot as a market leader in the smartphone industry.

It is worth noting that neither Samsung Group nor Lee family commented on the report published by Seoul Economic Daily. However, the company's reorganization efforts have been increased significantly ever since Mr. Lee took over. In any case, if Samsung plans to compete against the likes of Apple, it should consider adopting a more innovative approach in order to retain its loyal customers.