Samsung Selects About 100 'Technology National Representatives' Annually for 14 Years... Lee Jae-yong Emphasizes Role as Key Players in 'Survival Technology'

Vice Chairman Lee Attends Closing Ceremony of the '2022 International Skills Olympics' Special Event on the 17th
Supporting the Olympics Since 2007... Selecting Over 100 Domestic Competition Winners Annually
Emphasizing 'Survival' and 'Innovative Technology' Since 2020... Pursuing Sustainable Growth Through Technology Development

Vice Chairman Lee Jae-yong of Samsung Electronics (second from left) inspecting semiconductor equipment with Peter Wennink, CEO of ASML, and Martin van den Brink, CTO of ASML, at ASML headquarters in Eindhoven, Netherlands, on June 14 (local time). (Photo by Yonhap News)

[Asia Economy Reporter Moon Chaeseok] "This is a harsh crisis situation. Our survival depends on how quickly we can make future technologies our own." This was emphasized by Samsung Electronics Vice Chairman Lee Jae-yong at the 'Semiconductor Research Institute Meeting' in June 2020. Looking at the flow of technology-related remarks left by Vice Chairman Lee since that day, it is clear that he frequently used words like 'survival,' 'future,' and 'technology that does not exist in the world.' Considering the reality of fierce competition in ultra-fine foundry (semiconductor contract manufacturing) processes, Samsung's main business, against formidable companies such as Taiwan's TSMC and the U.S.'s Intel, one can guess why Vice Chairman Lee made these remarks. This is also why the business community is highly interested in the speed of Samsung's 'technology management.'

On the 17th, Vice Chairman Lee visited KINTEX in Goyang City, Gyeonggi Province, where the closing ceremony of the '2022 International Skills Olympics Special Competition Goyang,' a world competition where Korea's national technology prospects compete, was held. During the closing ceremony, he encouraged the athletes competing in the event, just like in the first year of sponsorship in 2007, and carefully observed the competition. Despite handling numerous schedules such as corporate governance restructuring, revival of the control tower, promotion to chairman, trials related to the unfair merger of Samsung C&T and Cheil Industries and accounting fraud allegations of Samsung Biologics, and merger and acquisition (M&A) discussions, he visited the event site at least for the closing ceremony because he judged that without technological development, the company has no future.

Vice Chairman Lee is the leader who led Samsung Electronics to support the National Skills Competition and national representatives. In 2006, as an executive director, he visited a Japanese company and was deeply impressed by the fact that many skilled workers in core component processes were winners of the International Skills Olympics and Japanese Skills Competition, and that the company displayed the list of winners and trophies. In December of that year, he signed a 'Skills Promotion Agreement' with the Ministry of Employment and Labor and began sponsorship activities. After internal discussions at Samsung Electronics, the Samsung Skills Olympics Office and Training Center were established within the company in 2007. The tradition of actively hiring excellent personnel from skills competitions was also created at that time. From that year until 2021, for 14 years, Samsung Electronics as well as affiliates such as Samsung Electro-Mechanics, Samsung Heavy Industries, Samsung SDI, Samsung Display, Samsung Biologics, Samsung C&T, and S-1 recruited 1,424 athletes who participated in the National Skills Competition. This brought in more than 100 'technology warriors' annually on average.

Vice Chairman Lee's 'love for technology' encompasses foundational industries and advanced manufacturing industries. In 2009, as an executive director, he visited the 40th International Skills Olympics held in Calgary, Canada, and told the athletes, "Competitiveness in mold, injection, lathe, etc., ultimately depends on people," and revealed his philosophy that "We started supporting technical personnel to take care of such people, which not only helps the company succeed but also creates quality jobs so that all citizens can prosper, and systematically nurtures the younger generation to give them opportunities to enter society." This is proof that his recent remarks of "technology, technology, and more technology" are not a 'surprise show.' Later, in 2010, as a vice president, he invited principals of domestic technical high schools to Samsung Digital City in Suwon, sending a message to society that "technical talents will be favored regardless of academic background."

Recently, the intensity of Vice Chairman Lee's remarks has increased. This is because Samsung Electronics' main business, memory semiconductors (DRAM, NAND flash), has entered a recession, and the company must stake its life on restructuring its business centered on foundry. If it fails to surpass TSMC, Intel, and others in technology competition through ultra-fine processes, securing big tech customers like Apple will become difficult. Profitability is declining, and the group's growth momentum could be extinguished. Other main industries such as home appliances and displays are struggling against fierce competition from China, deepening concerns. The strong U.S. domestic semiconductor promotion policy and sanctions against China have made it difficult even to formulate the group's management strategy. Ultimately, the fundamental strength is 'technology,' which is a matter of 'survival,' reflecting Vice Chairman Lee's basic philosophy. This is why there is a consensus inside and outside the business community that it is time to return to this philosophy.

Vice Chairman Lee clearly stated that Samsung's 'respect for technology' is a 'tradition.' At the groundbreaking ceremony of the semiconductor research and development (R&D) complex in Giheung, Gyeonggi Province, on August 19, he emphasized, "Let's continue the tradition of valuing technology and making advanced investments," and "Let's create the future with technology that does not exist in the world." This statement stems from the belief that 'innovative technology (technology that does not exist in the world),' essential for survival, originates from Samsung's 'tradition of respecting technology.'

Since the 2007 Shizuoka competition in Japan, Samsung has sponsored the International Skills Olympics, held every two years, for 16 years and 8 consecutive times. Over 14 years, while recruiting 1,424 people, Samsung has supported separate training for those who joined the company after winning at the International Skills Olympics as national representatives. These Korean national representatives have won 52 medals: 28 gold, 16 silver, and 8 bronze. The protagonists of these medals are the ones who realized the '2027 declaration of mass production of the 1.4-nanometer (1 nanometer = one-billionth of a meter) process.'

According to Samsung Electronics, among those who joined after winning at the competition, about 200 hold the Presidential Citation or master craftsman certificates. Most are under 35 years old and are focusing on technology development to become masters after 10 to 20 years of skilled experience. A master craftsman refers to a person with over 15 years of practical experience and the highest level of skilled technology in the industrial field with high social and technological contributions. They are national top-level technical and honorary personnel selected by the government through recommendations from related central administrative agency heads.