No Response to Semiconductor Crisis and Second Half Personnel Questions
Completed Business Trips to the Philippines and Singapore
Samsung Electronics Chairman Lee Jae-yong returned to Korea on the afternoon of the 11th after completing business trips to the Philippines and Singapore. Arriving through the Seoul Gimpo Business Aviation Center (SGBAC) in Gangseo-gu, Seoul, Chairman Lee got into a vehicle without responding to any questions from the press.
Samsung Electronics Chairman Lee Jae-yong, who accompanied President Yoon Suk-yeol on his Southeast Asia tour, is returning to Korea on the afternoon of the 11th through the Seoul Gimpo Business Aviation Center in Gangseo-gu, Seoul. [Image source=Yonhap News]
Following Samsung Electronics' third-quarter earnings announcement this year, which fell short of market expectations and sparked crisis rumors, Chairman Lee remained tight-lipped when asked about measures to overcome the semiconductor crisis. He also remained silent when questioned about personnel changes in the second half of the year.
On the same day, Jeong Hyun-ho, Head of Samsung Electronics' Business Support Task Force (Vice Chairman), also did not answer when asked whether merit-based personnel decisions would be applied in the second half. No Tae-moon, President of Samsung Electronics' Mobile Experience (MX) Division, refrained from detailed comments on strategies to improve performance and the possibility of equipping the Galaxy S series with Exynos chips, stating, "I will talk about it again when there is an opportunity."
Samsung Electronics Chairman Lee Jae-yong, who accompanied President Yoon Suk-yeol on his Southeast Asia tour, is returning to Korea on the afternoon of the 11th through the Seoul Gimpo Business Aviation Center in Gangseo-gu, Seoul. [Image source=Yonhap News]
Samsung Electronics' third-quarter performance fell short of market expectations due to sluggish sales of its main product, general-purpose DRAM, and inventory adjustments in smartphones and PCs. The supply delay of High Bandwidth Memory (HBM) and continued losses in the foundry (semiconductor contract manufacturing) business have caused instability in the non-memory business.
Jeon Young-hyun, Head of Samsung Electronics' Device Solutions (DS) Division (Vice Chairman), issued an unusual public apology immediately after the third-quarter preliminary earnings announcement, saying, "We deeply reflect on not meeting market expectations." This marks the first time Samsung Electronics has issued an official apology message related to earnings announcements. It is interpreted that internal concerns about the crisis have intensified.
Samsung Electronics' Jung Hyun-ho, Head of Business Support TF (Vice Chairman), and Noh Tae-moon, Head of MX Division (President), are returning to Seoul Gimpo Business Aviation Center in Gangseo-gu, Seoul on the afternoon of the 11th. [Image source=Yonhap News]
There was also damage to external reputation. Samsung Electronics had maintained the No. 1 spot on Forbes' list of "World's Best Employers" for four consecutive years since 2020, but this year it dropped to third place, shaking its prestige. Its stock price remains in the 50,000 won range.
Chairman Lee accompanied President Yoon Suk-yeol on his state visits to the Philippines and Singapore as part of the economic delegation and attended business forums in both countries. In the Philippines, he visited Samsung Electro-Mechanics' production plant, toured the multilayer ceramic capacitor (MLCC) factory, and discussed future business strategies with management, including Samsung Electro-Mechanics President Jang Deok-hyun.
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