Samsung Chairman Lee Jae-Yong Calls For Do-Or-Die Mindset To Overcome Crisis

(MENAFN- IANS) Seoul, March 17 (IANS) Samsung Electronics Chairman Lee Jae-yong has urged executives to adopt a "do-or-die" mindset to navigate the intense challenges posed by the new era driven by artificial intelligence (AI), industry sources said on Monday.

His call was made in a video message delivered to some 2,000 executives of the company's affiliates undergoing education Seminars since last month, according to the sources.

The video, which also featured the management philosophies of the late founding Chairman Lee Byung-chul and former Chairman Lee Kun-hee, outlined the company's need for a strategic transformation. However, Lee himself did not appear in the recording, the sources said, reports Yonhap news agency.

"Samsung is facing a do-or-die survival issue. We need to reflect deeply from the top," Lee was quoted as saying in the video, emphasizing the urgency of the situation. "We must invest for the future, even if it means sacrificing immediate profits."

As part of the seminar, the executives received a business card-sized crystal plaque engraved with the words: "Samsung people who are strong in crisis, good at reversal and fierce in competition," reinforcing the company's call for resilience.

Samsung has been struggling in the AI semiconductor sector, particularly in high bandwidth memory (HBM), where it lags behind rival SK hynix Inc.

Its major businesses, including TVs, smartphones and dynamic random access memory (DRAM), have also seen declining market shares last year.

According to its latest business report, the global market share of Samsung Electronics' TVs fell from 30.1 percent in 2023 to 28.3 percent last year. Over the same period, that of its smartphones dropped from 19.7 percent to 18.3 percent.

Its share of DRAM, where it has a dominant position, also decreased from 42.2 percent to 41.5 percent over the cited period.

As a result, Samsung Electronics posted lower-than-expected earnings last year due to sluggish sales in its flagship memory business and delays in HBM rollouts.

Analysts now forecast Samsung Electronics' first-quarter operating profit could decline 22.5 percent.

-IANS

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