Han Jong-hee: "Stock price is a task to show this year... M&A remains valid"

CES 2023 Samsung Electronics CEO Meeting

[Las Vegas=Asia Economy Reporter Park Sun-mi] Han Jong-hee, Vice Chairman of Samsung Electronics, expressed his commitment to enhancing the value of Samsung Electronics' stock, which is considered a "national stock." He also stated that mergers and acquisitions (M&A) are still being pursued, following Chairman Lee Jae-yong's emphasis on bold investment and technological innovation.

On the 6th (local time), Han held a press conference at CES 2023 in Las Vegas, USA, and when asked about Samsung Electronics' stock price, he said, "It is our homework." He explained, "Due to the intertwined macroeconomic conditions, even big tech companies have experienced huge losses from stock price declines, so the stock price does not rise just because Samsung Electronics is doing well. However, I believe that if Samsung Electronics' business thrives and all profits return to the people, the stock price will rise. We will work together with executives, customers, and partners to show good results. Please watch over us."

Regarding the lack of clear results since announcing M&A plans at last year's CES, he expressed that M&A is still valid. He said, "The execution procedures for M&A have been delayed due to various circumstances such as the Russia-Ukraine conflict, China's COVID-19 lockdowns, and worsening macroeconomic conditions. As COVID-19 is stabilizing, we can expect good news soon." He added, "Please understand that Samsung Electronics is striving to carry out M&A for business development. Although I cannot go into details due to security issues, we are trying to do a lot of M&A." Regarding Chairman Lee Jae-yong's requests, he said, "He always tells us not to be discouraged and to pursue bold investment and technological innovation."

Han also mentioned meeting with business partners and collaborators at CES 2023. He said, "Since CES 2023 is an opportunity to introduce Samsung Electronics to the North American market, we discussed with business partners and collaborators how to better promote good products to consumers. With some partners, we exchanged specific ideas such as changing store layouts to better showcase products."

Regarding the lower-than-expected Q4 earnings announced this time, he explained, "We somewhat anticipated it due to the significant economic contraction and ongoing recession, and the forecast was not far off. There were difficulties due to large exchange rate fluctuations. Although the economic situation this year is not very good, I think it will improve somewhat in the second half. We will make more efforts to achieve meaningful numbers."

Regarding the exhibition focused on connectivity at CES 2023, Han said, "We will lead the 'popularization of the hyper-connected era with evolved SmartThings,'" and explained, "Based on the 'CamTech' philosophy, we will offer a new and expanded SmartThings experience with enhanced security and a hyper-connected ecosystem of things." The goal is to innovate customer experience beyond technological innovation by developing technology and expanding the ecosystem so that anyone can enjoy hyper-connectivity anytime and anywhere.

In this regard, Lee Young-hee, President of the Global Marketing Office, who also attended the press conference, said, "Connection is not the ultimate goal; we focus on how customers can benefit through connection. At CES 2023, rather than highlighting new products, our biggest challenge was to convey what kind of customer experience can be achieved when devices connect with each other and with people."

Meanwhile, Han stated that Samsung Electronics plans to further strengthen the 'One Samsung' synergy within the DX division. By presenting new lifestyles with ultra-large screen products, Samsung aims to maintain its No. 1 position in the TV market in 2023 and challenge for the world’s top spot for the 18th consecutive year. In the TV market, where the preference for large screens is clearly emerging, Samsung plans to actively respond by launching ultra-large products including the 98-inch 8K Neo QLED this year. Additionally, it will strengthen new form factor businesses by expanding the lineup of Micro LED screen sizes.

He also expressed his ambition to grow the home appliance business as a growth engine for the DX division. The global home appliance market is a large market worth $340 billion, more than three times the size of the TV market, and Samsung Electronics is creating new demand in appliances with its 'Bespoke' line. Han said, "We are expanding the Bespoke global market. The response is quite good. We also plan to expand the Bespoke lineup."