Samsung Vice Chairman Jeon Young-hyun: "Apologies for Poor Performance... Will Create an Opportunity for a New Leap Forward" [Full Text]

Apology Statement for Performance on the 8th

Jeon Young-hyun, Vice Chairman leading Samsung Electronics' semiconductor business, bowed his head on the 8th regarding the third-quarter preliminary results, saying, "We apologize for causing concern with results that did not meet market expectations," and added, "All responsibility lies with the management leading the business, and the management will take the lead to overcome the crisis and surely create an opportunity for a new leap forward."

On the same day, Samsung Electronics announced third-quarter preliminary results that fell significantly short of market expectations. Due to sluggish semiconductor performance, Samsung Electronics recorded an operating profit of 9.1 trillion won. This represents a 274.5% increase compared to the same period last year but a 12.8% decrease compared to the previous quarter. However, sales reached a record high of 79 trillion won.

This is the first time Samsung Electronics' top management has issued a separate message related to the earnings announcement. It is interpreted as recognizing the seriousness of the current situation, including recent stock price declines and concerns about technological competitiveness, and declaring a strong will to overcome the crisis.

Vice Chairman Jeon presented the following measures to overcome the current crisis: ▲ restoring fundamental technological competitiveness ▲ more thorough preparation for the future ▲ innovation in organizational culture and working methods. He also promised to actively communicate with investors whenever opportunities arise.

Vice Chairman Jeon emphasized, "Technology and quality are our lifeblood and the pride of Samsung Electronics that can never be compromised," adding, "Only new technologies that do not exist in the world and perfect quality competitiveness are the only way for Samsung Electronics to make a new leap forward." He declared, "We will rearm ourselves with a challenging spirit that runs toward higher goals, not a defensive mindset to protect what we have, and when problems are found on the ground, we will expose them as they are, engage in fierce discussions, and improve."

The following is the full text of Vice Chairman Jeon Young-hyun's message.

To customers, investors, and employees,

To our customers, investors, and employees who always love Samsung Electronics, today, we, the management of Samsung Electronics, first offer our apologies to you. We have caused concern about the fundamental technological competitiveness and the future of the company with results that did not meet market expectations. Many people speak of Samsung's crisis. All responsibility lies with us who lead the business.

To customers, investors, and employees, however, Samsung has always had a history of challenge, innovation, and overcoming crises by turning them into opportunities. We will surely turn the serious situation we are currently facing into an opportunity for a new leap forward. The management will take the lead in overcoming the crisis. Above all, we will restore the fundamental competitiveness of technology. Technology and quality are our lifeblood. They are the pride of Samsung Electronics that can never be compromised. We will secure fundamental competitiveness rather than short-term solutions. Furthermore, we believe that only new technologies that do not exist in the world and perfect quality competitiveness are the only way for Samsung Electronics to make a new leap forward.

Second, we will prepare for the future more thoroughly. We will rekindle our unique passion that fearlessly pioneers the future and relentlessly pursues and achieves the goals once set. We will rearm ourselves with a challenging spirit that runs toward higher goals, not a defensive mindset to protect what we have.

Third, we will revisit and promptly fix our organizational culture and working methods where necessary. We will rebuild our traditional organizational culture of trust and communication. When problems are found on the ground, we will expose them as they are, engage in fierce discussions, and improve. In particular, we will actively communicate with investors whenever opportunities arise.

Dear customers, investors, and employees, I am confident that if we challenge ourselves fiercely, the current crisis can surely be turned into a new opportunity. Please give us your support and encouragement so that Samsung Electronics can once again demonstrate its strength. Thank you.