2nd Anniversary of Chairman's Inauguration at Month-End
Breaking Silence on Semiconductor Crisis Rumors
Notable Strong Personnel and Organizational Changes
Expressing Determination to Overcome Crisis
Samsung Electronics Chairman Lee Jae-yong has entered a period of management planning without any external schedules. There is speculation within the business community that he will soon release a message containing bold decisions to save the company from crisis. Although he is currently maintaining silence regarding the 'semiconductor crisis theory' that surfaced alongside the third-quarter earnings announcement this year, it is highly likely that he will issue a message internally at least. Analysts suggest that the timing will likely coincide with the second anniversary of his chairmanship at the end of this month.
According to the business community on the 15th, Chairman Lee came to his office at the Seocho building in Seoul without any external appointments and focused on management planning. It was the first time in a week since the preliminary third-quarter results were announced on the 8th that he could fully concentrate on the company's situation. Chairman Lee returned on the 11th from an economic delegation trip to the Philippines and Singapore, but afterward, he attended external events such as the wedding of SK Group Chairman Chey Tae-won's eldest daughter and appeared at the appellate trial for the 'unfair merger and accounting fraud' case held at the Seoul Central District Court.
The business community believes that Chairman Lee is likely to initiate changes within the organization through swift and strong personnel measures and strongly express his determination to overcome the crisis. After the personnel changes, there is also a possibility that he will issue a separate message to explain the background, prevent internal confusion, and strengthen unity.
This analysis gains more weight as the company scales down major events scheduled for this month. Chairman Lee will mark his second anniversary on the 27th but has decided not to hold any special commemorative events. Additionally, the fourth anniversary memorial service for the late former Chairman Lee Kun-hee on the 25th will be held quietly on a small scale.
Within Samsung Electronics, there is also a view that a message from Chairman Lee is necessary at this time. It is because there is a need to convey the company's future direction and specific management plans. Especially since no separate message was issued on the first anniversary of his inauguration last year due to judicial risks, the view that a message should be delivered this year in light of the management crisis is gaining traction.
If a message is issued, it is expected to be strong in tone. Samsung Electronics has faced several crises over its 55-year history but has overcome them with decisions that went beyond common sense.
Samsung Electronics was founded on February 8, 1983, when the late founder Lee Byung-chul declared in Tokyo, Japan, a large-scale investment in very-large-scale integration (VLSI) and entered the semiconductor market for the first time. This is later known as the 'Tokyo Declaration.' On June 7, 1993, the late former Chairman Lee Kun-hee made the 'New Management Declaration' in Frankfurt, Germany. He left the famous saying, "Change everything except your wife and children." At that time, although Samsung Electronics' products were considered the best domestically, they were not well regarded in the global market. The declaration was a powerful message to dedicate the entire company to overturn this situation. On March 9, 1995, the 'Anycall Burning Ceremony' took place. About 2,000 employees wearing headbands inscribed with 'Quality Assurance' gathered at Samsung Electronics' Gumi plant in Gyeongbuk and burned 150,000 Anycall mobile phones that had recorded high defect rates. This event is regarded as the foundation for Samsung Electronics' later 'Galaxy myth.' In August 2001, the 'Zakuro Meeting' was held. At a restaurant called 'Zakuro' near the Okura Hotel in Tokyo, Chairman Lee Kun-hee and President Hwang Chang-gyu rejected a proposal from Japanese company Toshiba to establish a joint venture for NAND flash memory and chose independent development instead. Other pivotal moments include the 2009 'OLED Decision' to equip mobile phones with AMOLED and the 2016 recall of all Samsung Galaxy Note7 devices following battery fire incidents, both of which are remembered as choices that changed Samsung Electronics' future.
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