Lee Jae-yong's 'New Samsung' Bold Move with MZ Generation and Future Discussions... Third Destination, Display

Visit to Samsung Electronics Suwon Plant Video Display Division
Received Next Year's Strategic Product Report from MZ Generation Employees

Resumption of On-site Management Two Days After Visiting Samsung Engineering

Vice Chairman Lee Jae-yong of Samsung Electronics visited the Suwon Plant's Visual Display Division on the 26th to receive a strategic product report from MZ generation employees (born between the 1980s and early 2000s). (Photo by Samsung Electronics)

[Asia Economy Reporter Moon Chaeseok] Lee Jae-yong, Vice Chairman of Samsung Electronics, who is accelerating management after the special pardon on Liberation Day, spent time communicating with MZ generation (born between 1980 and early 2000s) employees on the 26th.

According to Samsung Electronics on that day, Vice Chairman Lee received reports and held discussions on next year's strategic products from MZ generation employees of the Visual Display Division at the Suwon plant. Afterwards, he held a meeting with MZ generation employees from the Device Experience (DX) division.

This day’s activities marked Lee’s third management activity since his pardon. Unlike receiving reports from division heads at the vice chairman or president level, he received reports directly from employees involved in product and service development, breaking the traditional format. He received direct reports from MZ generation employees across various roles involved in next-generation strategic product development, including product and service planning, platform and software (S/W) development, and design. The MZ generation employees introduced and demonstrated to Vice Chairman Lee the features and concepts of Samsung’s upcoming products under development, such as ▲Micro LED ▲Neo QLED ▲QD OLED TV ▲Cloud gaming services. This was the first time Lee received reports related to strategic products and services directly from MZ generation employees rather than from executives.

The meeting with DX employees included MZ generation employees from the Visual Display (VD), Mobile Experience (MX), home appliances, network divisions, and big data center, who freely exchanged opinions. Employees responsible for product and service development, marketing, and sales all participated. At this meeting, Vice Chairman Lee mainly discussed various topics freely, including ▲interests and concerns of the MZ generation ▲the image of Samsung as perceived by the MZ generation ▲ideas for future new businesses ▲ways to spread an innovative organizational culture ▲career development roadmaps ▲and difficulties in company life. Afterwards, Lee held a meeting with the VD division management to discuss the current status and future mid- to long-term strategies of the TV and service businesses.

Samsung Electronics Vice Chairman Lee Jae-yong having a meeting with employees of the Device Experience (MX) division. (Photo by Samsung Electronics)

Vice Chairman Lee had difficulty communicating in a meeting format with field employees due to employment restrictions, but after his pardon, he is increasing on-site communication. Regarding this, Lee emphasized in an interview with reporters on his way back from a European business trip in June, "I will create a flexible culture so that the organization can adapt to change." The day's activities are interpreted by the business community as Lee putting into practice the message he declared. A business community official assessed, "Vice Chairman Lee showed his will to understand and reflect the values of the MZ generation not only in Samsung’s organizational culture but also in strategic products and services through his on-site activities."

The business community views the MZ generation as a key topic and keyword that is shaking up all aspects of corporate activities, including products and services, working methods, and compensation. This is because they determine the rise and fall of brands and lead premium consumption. From Samsung’s perspective, which leads the premium market in all electronic product markets including TVs, smartphones, and home appliances, the MZ generation is an important 'customer,' a fact that Vice Chairman Lee also perceives.

According to Samsung Electronics, about 50% of all employees belong to the MZ generation. The reason Vice Chairman Lee has been paying close attention to the 'field' and communicating directly with the MZ generation since his pardon is interpreted by the business community as his intention to understand this generation of employees and customers and to reflect this understanding in organizational culture, products, and services. Regarding this, a Samsung Electronics official said, "Vice Chairman Lee appears to be directly verifying on-site whether MZ generation employees are working creatively and proactively, and whether they feel a sense of belonging and pride, rather than just receiving 'reports,' and is looking for areas to improve." A business community official evaluated, "Since Vice Chairman Lee’s pardon, a wind of change is blowing in the field."

On the 19th, Vice Chairman Lee also encouraged employees by dining at the cafeteria during the groundbreaking ceremony of the next-generation semiconductor research and development (R&D) complex at the Giheung Campus in Yongin, Gyeonggi Province. Afterwards, at an employee meeting held at the Hwaseong Campus, he promised to gradually increase opportunities for direct communication with employees and took one-on-one commemorative photos with all attending employees. When an employee requested a photo, saying, "Before coming to work, I loudly told my wife that I would take a solo photo with Vice Chairman Lee Jae-yong," Lee readily suggested the employee make a video call with his wife. On the 24th, he visited the Samsung Engineering Global Engineering Center (GEC) in Sangil-dong, Gangdong-gu, Seoul, had lunch at the cafeteria, and took photos with employees. Afterwards, he visited the in-house daycare center attended by about 100 children, checked the operation status, and encouraged the childcare teachers.