The 4 Major Groups Hold Strategy Meeting for Second Half... Focus on 'Organizational Renewal'

SK Revisits Previous Management Control
Samsung Focuses on Strengthening Semiconductor Business
Hyundai Motor and LG Pursue Trade Response and Future Growth Opportunities

Samsung, SK, Hyundai Motor, and LG, the four major conglomerates, will hold their second-half strategy meetings one after another by the end of this month. Through these meetings, the groups are expected to discuss responses to the three highs (high inflation, high interest rates, and high oil prices), artificial intelligence (AI) business strategies, as well as overall group structural improvements.

Choi Tae-won, Chairman of SK Group and Chairman of the Korea Chamber of Commerce and Industry, is delivering the keynote speech at the opening ceremony of the 56th Korea-Japan Business Conference held at the Okura Hotel in Tokyo on the 14th of last month.
[Photo by Yonhap News]

According to the business community on the 12th, the key theme of the major four groups' meetings is summarized as 'organizational renewal.' In particular, Samsung and SK share common challenges such as the legal risks faced by their chairmen and strengthening their semiconductor businesses. To overcome the crisis, it is crucial for everyone from entry-level employees to senior executives to be 'mentally armed.' These groups even resemble each other in having executives work on weekends.

SK Group will hold a 'Management Strategy Meeting' on the 28th and 29th of this month at the SKMS Research Institute in Icheon, Gyeonggi Province, attended by CEOs of major affiliates. SK Group Chairman Chey Tae-won, SK Innovation Vice Chairman Choi Jae-won, and SK Supex Council Chairman Choi Chang-won will also attend the meeting.

SK plans to bring up 'SKMS (SK Management System),' a management system announced in 1979 by the late founder Choi Jong-hyun, as a key topic. SKMS embodies SK Group's management philosophy, including autonomy and responsibility, happiness of members and stakeholders, and the highest competitiveness. It is a philosophy that all employees memorize like a 'manual.' This reflects the judgment that not only the management but all employees need to be mentally armed.

However, discussions on the group’s governance structure related to Chairman Choi’s recent lawsuit issues are reportedly not on the agenda for this meeting. A business community insider familiar with SK Group said, "Since Chairman Choi stated at the Supex Council’s special meeting earlier this month that he will fulfill his duties to ensure no negative impact on SK and the national economy, it is unlikely to be discussed at the strategy meeting."

Samsung plans to hold a global strategy meeting during the last week of this month (24th to 28th). The meeting will be conducted separately for the DS (semiconductor) and DX (mobile and home appliances) divisions, each led by their respective heads. The content of the DS meeting, following the appointment of Vice Chairman Jeon Young-hyun as division head at the end of last month, is a hot topic. They will discuss how to recover from trailing SK Hynix in the AI semiconductor era and how to revitalize the organizational atmosphere. Given that the six-day workweek for affiliate executives has been formalized, strong messages regarding work efficiency may be delivered. There is a high possibility of encouraging the strengthening of the advanced packaging business to achieve noticeable results such as customer orders and market share expansion. Executives from major business units and global subsidiaries will all participate. Chairman Lee Jae-yong will not attend.

The DX division will discuss strategies to maximize sales of flagship mobile products such as Galaxy Z Fold6, Galaxy Z Flip6, and Galaxy Ring around the Paris Olympics in July and August and the upcoming Unpacked event next month. While the focus in the first half of this year was on promoting 'AI TV,' the plan for the second half is to achieve results with on-device AI smartphones.

Hyundai Motor and LG are focusing respectively on managing international trade risks and discovering future growth engines. Hyundai Motor frequently holds meetings with regional headquarters, and it is reported that a meeting may be held at the end of this month. If held, it is expected to discuss trade risks after the U.S. presidential election in November (local time), strategies to address the electric vehicle chasm, and sales strategies. A Hyundai Motor and Kia official said, "If the meeting takes place, top executives will focus intensively on discussing responses to the Inflation Reduction Act (IRA) and tariff policies."

LG held a strategic briefing session for two weeks in early last month, chaired by Chairman Koo Kwang-mo. They reviewed the feasibility and mid-to-long-term strategic directions of AI and automotive parts businesses at LG Electronics and LG Innotek.