[Report] Samsung Electronics Annual General Meeting Draws Attention from 5 Million 'Donghak Ants'... Over 1,500 Attend Despite COVID Surge

Crowds Gather Despite COVID-19... Over 1.7 Times Compared to Last Year
Record-Breaking Performance Draws Increased Attention... Proceeding in a Calm Atmosphere
DX Division Identifies Robots and Metaverse as New Growth Engines
DS Division Promises Technological Superiority and Bold Investments

[Image source=Yonhap News]

[Asia Economy Reporter Kim Jin-ho] On the 16th, a so-called ‘Donghak Ant’ procession continued at the Suwon Convention Center in Yeongtong-gu, Suwon, Gyeonggi-do. It was a crowd attending Samsung Electronics’ ‘53rd Annual General Meeting of Shareholders’ held at 9 a.m. that day. From young couples with children to elderly people with white hair, the high public interest in Samsung Electronics, which has truly become a ‘national stock,’ was evident at a glance. As of the end of last year, Samsung Electronics had about 5.06 million shareholders, making it the ‘largest in the country.’

Despite the daily record-high number of COVID-19 confirmed cases, the general meeting was bustling with a crowd. Compared to the 51st and 52nd meetings, which were quiet due to the COVID-19 impact, the number of shareholders who visited the venue exceeded 1,500, about 1.7 times more than the previous year (around 900).

The meeting was also accessible online. This was a consideration for shareholders who found it difficult to attend in person due to concerns about COVID-19 infection. Shareholders who wished to participate applied in advance and were separately provided with a broadcast URL. It is known that a significant number of shareholders attended online as well.

With COVID-19 cases exceeding 400,000 as of the 15th, Samsung Electronics implemented thorough quarantine procedures at the venue. To enter the meeting hall, attendees had to go through 2 to 3 steps including hand sanitization, mask-wearing, and temperature checks. In particular, the entire convention center was disinfected daily for two weeks prior to the meeting to create a so-called ‘sterilized meeting hall.’ Inside the venue, seats were spaced apart to maintain social distancing. A designated seating system was operated again this year, and the meeting proceeded smoothly in a calm atmosphere.

Despite the global COVID-19 pandemic last year, Samsung Electronics succeeded in achieving record-breaking performance. The semiconductor division reclaimed the world’s number one position from Intel after three years. Even higher performance is forecasted for this year. The securities industry expects Samsung Electronics to enter the ‘300 trillion KRW revenue’ era this year.

Shareholders attending the meeting expressed high expectations for the excellent performance. However, they actively raised questions regarding concerns such as the Ukraine crisis and global supply chain issues.

One shareholder asked, “Multinational companies are withdrawing from Russia due to the Ukraine war; please share Samsung Electronics’ response plan.” Han Jong-hee, Vice Chairman of Samsung Electronics (Head of the DX Division), replied, “We are closely monitoring the current economic sanctions against Russia. We have prepared contingency plans to minimize the impact on our business and are also considering additional donations and support for Ukraine.”

Questions about plans for mergers and acquisitions and new business ventures followed. Another shareholder asked, “You mentioned meaningful mergers and acquisitions within three years; please provide specific plans.” Vice Chairman Han explained, “Due to increased internal and external uncertainties, it is difficult to specify the timing of mergers and acquisitions, but we are actively reviewing options.”

The new business strategy of the DX Division was also revealed. Vice Chairman Han identified robots and the metaverse as key new growth engines. He said, “We are strengthening specialized teams to promote robots as a new business. Regarding the metaverse, we will innovate optimized metaverse devices and solutions so that customers can enjoy the best experience anytime and anywhere.”

He also hinted at the release of robot products possibly within this year. Focused on health and life care sectors in response to an aging society, the launch of robots is highly likely. The company also plans to make a full-scale entry into the metaverse market. Last month, in Barcelona, Spain, Vice Chairman Han told reporters, “We are preparing well for the launch of metaverse platform devices, so please look forward to it.”

Kyung Kye-hyun, President of Samsung Electronics’ DS Division, emphasized achieving sustainable growth through establishing a customer-first business model and innovating organizational culture. President Kyung said, “We see semiconductors as the foundation of future IT technologies such as artificial intelligence (AI), the metaverse, and autonomous driving. Through technological superiority and bold investments, we will lay the groundwork for mid- to long-term sustainable growth. This year, we will focus on expanding the technological gap in next-generation memory processes, and in foundry (contract manufacturing), we will enhance customer satisfaction by expanding customer-centric thinking, technology, and manufacturing capabilities.”