Yong Seok-woo, President of Samsung Electronics, introducing the company’s AI TV (Photo
courtesy of Yonhap)
SEOUL, May 16 (Korea Bizwire) — Samsung Electronics is doubling down on cost-cutting measures within its television division as it continues operating under an emergency management system introduced last year to weather mounting industry pressures.
According to industry sources, Samsung’s Visual Display (VD) division reaffirmed its internal austerity guidelines in a company-wide notice on May 12. The memo reiterated the importance of adhering to departmental expense rules and warned against supporting unofficial events or non-essential spending.
Samsung entered emergency management in 2024 in a bid to regain its technological edge, instituting measures such as six-day workweeks for executives. The latest directive outlines stricter controls on business meeting budgets, office supplies, and travel expenses, urging staff to minimize both frequency and duration of business trips.
The move signals a tightening of internal discipline as the global TV leader faces increasing competition from Chinese rivals and mounting external challenges. Although Samsung has held the top spot in global TV market share for 19 consecutive years, the gap is narrowing due to aggressive pricing and innovation from Chinese manufacturers.
HQ of Samsung Electronics (Image courtesy of Yonhap)
Further compounding difficulties, costs for key components like LCD panels have risen significantly, driven in part by China’s “old-for-new” subsidy program. Additionally, tariff uncertainties stemming from U.S. trade policies have clouded the outlook for exports.
In the first quarter of 2025, the combined operating profit of the VD division and the Digital Appliances (DA) division—which oversees TVs and home appliances—fell to around 300 billion won ($220 million), down from approximately 500 billion won in the same period of 2024.
“The prolonged economic downturn and intensified competition from China have continued to strain operations,” a Samsung spokesperson said. “The recent notice is aimed at proactively managing expenses to avoid budget overruns.”
Kevin Lee (kevinlee@koreabizwire.com)
