Samsung Electronics Annual General Meeting on the 15th
Over 600 Shareholders Attended
Shareholders Filled with Concerns over Shareholder Value Enhancement and New Business
"This year, the uncertainty surrounding the business environment around the company is expected to continue, making it a more challenging year than ever before. The secret to overcoming crises in difficult environments has always been the simple truth of focusing on the essentials."
Han Jong-hee, Vice Chairman of Samsung Electronics, made these remarks and expressed his determination for this year's management at the 54th Annual General Meeting of Shareholders held on the 15th at the Suwon Convention Center in Suwon, Gyeonggi Province.
In his greeting, Vice Chairman Han said, "Despite the difficult environment last year, Samsung Electronics, thanks to the efforts and encouragement of many people, surpassed 300 trillion won in sales for the first time and set a record high sales for two consecutive years," expressing gratitude to employees, partners, and shareholders.
About 600 shareholders attended the general meeting that day. This was quite different from last year when about 1,600 shareholders gathered despite COVID-19. The agenda included ▲approval of financial statements ▲appointment of inside director Han Jong-hee ▲approval of director remuneration limits.
Although the number of attending shareholders decreased and the meeting proceeded in a calm atmosphere, shareholders' concerns about Samsung Electronics were rather significant. In particular, some shareholders expressed concern about the stock price falling to '50,000 Electronics' and pointed out that "efforts to enhance shareholder value are not visible."
One shareholder, whose entire family owns Samsung Electronics shares, raised his voice, saying, "I bought the stock in the 100,000 won range, but now it barely holds at 60,000 won," and asked, "Are shareholders being taken for granted? How is the stock being managed like this?" He added, "My whole family owns shares, and my wife and children are here as well," and questioned, "Is it really appropriate to use the term 'sustainable coexistence' when treating shareholders like this? I really doubt it."
Other shareholders continued to voice demands for enhancing shareholder value, and applause followed after some remarks.
A shareholder in his 20s said, "Most shareholders who came today probably came with great concerns about the slowdown in the industry and deteriorating performance," adding, "Although this year will not be easy due to the economic recession, I came to the general meeting hoping Samsung will do well."
In response, Vice Chairman Han said, "(Regarding enhancing shareholder value) we are also considering it from various angles," and added, "We will conduct in-depth reviews in ways that help the company." He further stated, "The board of directors and management are striving to expand facility investments and pursue M&A to strengthen the foundation for sustainable growth," and "We believe this is the greatest help for long-term shareholder value enhancement."
Questions about the robot business plan were also raised. Vice Chairman Han replied, "We will strengthen the development of various core robot technologies and expand the development of products that allow users to experience the usefulness of robots," adding, "The robot business team is a specialized organization responsible for securing commercial robot technology and business promotion, and from this year, we plan to pursue various robot businesses such as wearable robots for walking exercise."
Regarding generative AI technologies like ChatGPT, Vice Chairman Han predicted they would present new opportunities for Samsung. He explained, "Recently, GPT has become a global sensation, and competition among global companies has intensified, leading to rapid progress in the commercialization of related services," adding, "Generative AI technologies like GPT have already demonstrated usefulness in various fields and are expected to create synergy with our products and services." He continued, "Such large-scale AI models are also expected to have a very positive impact on future semiconductor demand," and added, "The company is striving to improve products and customer experiences through innovations in AI technology and is actively responding to increased semiconductor demand by developing advanced packaging technologies for high-performance, ultra-high-capacity memory, ensuring smooth preparation for leading next-generation technologies."
Questions about the OLED (Organic Light Emitting Diode) TV, which Samsung Electronics launched for the first time in 10 years, also followed. In response to the question, "In 2020, Vice Chairman Han said that OLED would not be pursued in the future. Why did you start OLED again?" he said, "To expand consumers' product choices, we introduced OLED TVs domestically from this year," adding, "This allows us to operate a diverse product lineup including 8K, Neo QLED, OLED, and Micro LED." He further stated, "Since the global market introduction of OLED in the second half of last year, the company has recorded sales volumes at the targeted level," and added, "This year, with an expanded lineup and introduction regions, we expect to achieve increased sales compared to the previous year."
Meanwhile, at the general meeting, the agenda for appointing Chairman Lee Jae-yong as a registered director was not discussed due to ongoing judicial risks such as trials. In response to a shareholder's question, "Isn't it necessary for Chairman Lee Jae-yong to return as a registered director to strengthen responsible management?" Vice Chairman Han said, "There has been no specific review regarding the appointment of Chairman Lee Jae-yong as a registered director."
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