Samsung distributed crystal plaques to executives attending its recent leadership seminar, symbolizing the company’s renewed commitment to resilience and competitiveness. The plaques were engraved with each executive’s name alongside the phrase: “Strong in Crisis, Skilled at Comebacks, Relentless in Competition.” (Image courtesy of Samsung Electronics)
SEOUL, March 17 (Korea Bizwire) — Samsung Electronics Chairman Lee Jae-yong has issued a stern warning to the company’s executives, criticizing the loss of Samsung’s competitive strength and urging a bold, all-or-nothing approach to overcoming the crisis.
According to industry sources, Samsung shared Lee’s message during an executive seminar aimed at restoring the company’s founding values. The session, held since late February, has included 2,000 executives across all affiliates, including Samsung Electronics. This marks Samsung’s first large-scale executive seminar since 2016, signaling the urgency of the challenges it faces.
“This Is a Fight for Survival”
Lee’s message was conveyed through a pre-recorded video, which did not feature him directly but included excerpts from past speeches and an unreleased New Year’s address.
“We are facing a crisis unlike any before—one that threatens our survival,” Lee declared. “Executives must engage in deep self-reflection.”
He pointed out that 24 of the 30 most dominant corporations of the early 21st century have since been displaced by new innovators, emphasizing, “This is not someone else’s problem—it could happen to us.”
Lee also warned of fierce global competition in key technologies, likening the race to a “total war effort.” He questioned whether Samsung Electronics was still fulfilling its role as South Korea’s industrial leader, noting that its technological competitiveness across multiple sectors has deteriorated.
“Samsung once had a unique ability to recover from crises. But that resilience is no longer visible,” he stated. “We must invest in the future, even if it means sacrificing short-term profits.”
Samsung Electronics Co. Chairman Lee Jae-yong (Yonhap)
Samsung’s Declining Market Share and Profit Warnings
Lee’s urgent message comes amid declining market share and underwhelming earnings:
- TV market share fell from 30.1% in 2023 to 28.3% in 2024.
- Smartphone market share declined from 19.7% to 18.3%.
- DRAM market share dropped from 42.2% to 41.5%.
Samsung Electronics has also struggled in semiconductors, with delays in high-bandwidth memory (HBM) chip deliveries and weak AI-focused strategies limiting growth.
According to Yonhap Infomax, analysts from 21 securities firms forecast that Samsung’s Q1 2025 operating profit will decline 22.5% year-over-year to ₩5.12 trillion, with projections continuing to fall.
Strategic Response: R&D, Leadership Overhaul, and Future Investments
Despite these challenges, Samsung has increased R&D and capital expenditures to record levels, investing:
- ₩35 trillion in R&D in 2024, the highest in company history.
- ₩53.6 trillion in facility investments, signaling long-term growth ambitions.
Internally, Samsung has restructured its management strategy:
- A “Management Diagnosis Office” under Samsung Global Research began evaluating the System LSI semiconductor division in January.
- A “New Business Task Force (TF)” was upgraded to a full-fledged division under Samsung’s Device eXperience (DX) unit, raising speculation about major acquisitions and new business expansion.
Lee also reaffirmed Samsung’s commitment to talent and innovation, calling for aggressive global recruitment of top professionals, regardless of nationality or gender, and emphasizing a performance-based corporate culture.
Samsung Electronics headquarters in Seocho District (Image courtesy of Yonhap)
Executives Receive a Symbolic Reminder
At the seminar, executives were presented with a crystal plaque engraved with their names and the words “Strong in Crisis, Skilled at Comebacks, Relentless in Competition.”
“This inscription captures what Samsung must reclaim,” one attendee remarked. Another added, “We had grown complacent. This seminar made it clear: we must toughen up and fight to regain our edge.”
With growing pressure in AI, semiconductors, and consumer electronics, Lee’s forceful remarks indicate that Samsung is preparing for a major transformation—but whether it can execute successfully remains to be seen.
Kevin Lee (kevinlee@koreabizwire.com)
