Samsung Electronics DS Division Executive Salaries Frozen... "Resolution to Overcome Semiconductor Crisis"

Emergency Executive Meeting Led by President Kyung Gye-hyun
Consensus on Urgent Measures and Leading by Example
"Laying the Foundation for Profit Turnaround and Long-Term Growth"

Samsung Electronics has decided to freeze the salaries of executives in its Device Solutions (DS) division, which operates in the semiconductor business, for this year. This extraordinary measure was taken as the DS division faced a crisis, having recorded losses for four consecutive quarters last year and experiencing the largest deficit in the company's history.

On the afternoon of the 17th, Samsung Electronics' DS division held an emergency executive meeting chaired by Kyung Kye-hyun, President of the DS division, where this decision was made.

Samsung Electronics Seocho Building, Seocho-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Samsung Electronics explained that this decision is not about blaming the industry downturn caused by a shortage in semiconductor demand, but rather a resolution for executives to first rearm their minds with extraordinary determination to overcome this year's crisis.

Although the outlook for the semiconductor industry at Samsung Electronics is generally expected to improve this year, the fact that executives have taken the exceptional step of freezing their salaries is analyzed as stemming from Samsung's unique 'crisis awareness' regarding future survival.

President Kyung and other division heads and executives agreed during the meeting that it is a critical time requiring extraordinary measures to address the deterioration in business performance and for leaders to set an example.

They also reportedly shared the view that, to lead the semiconductor market in the era of the artificial intelligence (AI) revolution and overcome the crisis, a more thorough and bold internal innovation and a sincere mindset of tightening belts are necessary. They reaffirmed their commitment to swiftly securing competitiveness and normalizing management.

An executive from the DS division said, "The salary freeze is a message that starkly reflects the current crisis situation and is a necessary measure to maintain the tension needed to overcome the crisis. By sharing the pain collectively, we will definitely turn a profit this year and lay the foundation for long-term growth."

Previously, Samsung Electronics implemented emergency management measures freezing not only executive salaries but also employee wages in 2009, the year following the Lehman Brothers crisis and global financial crisis, and in 2015, when performance deteriorated. These actions were taken based on the judgment that the management environment was in a crisis situation that could not be optimistic due to intensified global competition and the rise of emerging companies.