'100,000 Won Milestone' on Chairman Lee's Third Anniversary
Restoring Technological Leadership, Expanding Through M&A
"Control Tower Reorganization... The Starting Point for New Samsung"
The achievement of the "100,000 won stock price" milestone by Samsung Electronics carries symbolic significance as it coincides with the third anniversary of Chairman Lee Jae-yong's appointment. Despite sluggish performance in the semiconductor and smartphone businesses, Chairman Lee took the helm and, over the past three years, has driven a transformation that increased the company’s market capitalization by more than 60 percent. His management strategy is now seen as bearing tangible results.
On October 27, Samsung Electronics’ stock price surpassed 100,000 won for the first time ever during early trading on the Korea Exchange. As of 10 a.m., it was trading at 101,500 won. Market expectations have grown due to the recovery in the semiconductor sector, enhanced competitiveness in high-bandwidth memory (HBM), and shareholder return measures such as share buybacks and cancellations.
This day is especially meaningful as it also marks the third anniversary of Chairman Lee’s appointment. In the third quarter of this year, Samsung Electronics posted consolidated sales of 86 trillion won and an operating profit of 12.1 trillion won. Operating profit increased by 31.8 percent year-on-year, while sales set a new quarterly record. The semiconductor division, which had previously been running at a loss, returned to an operating profit of over 6 trillion won.
At the end of 2022, Chairman Lee emphasized the importance of "technology the world has never seen," directing the company to restore technological competitiveness and expand future investments during a period of crisis. He has consistently advocated the message "Break through with technology," positioning semiconductors, artificial intelligence (AI), robotics, and biotechnology as key pillars for new growth. He has also stressed the importance of global cooperation and talent acquisition in core technology areas such as AI semiconductors, quantum technology, and sixth-generation (6G) mobile communications. Recently, he reviewed mid- to long-term investment plans in new businesses such as biotechnology, robotics, and smart factories, reaffirming a focus on "technology-driven growth."
Samsung Electronics once struggled with declining semiconductor profitability and weakened competitiveness in the HBM market, but has recently secured a series of major orders. The company landed a foundry (semiconductor contract manufacturing) deal worth approximately 23 trillion won from Tesla, and has also supplied image sensors for Apple’s iPhones and participated in OpenAI’s large-scale AI infrastructure project. Samsung is about to supply HBM3E (fifth-generation) to Nvidia, and is also expected to supply next-generation HBM4 (sixth-generation) chips.
In addition, Samsung Electronics has sought to stabilize its stock price and restore shareholder confidence through share buybacks and cancellations. In November of last year, the company decided on a 10 trillion won share buyback, of which 8.4 trillion won was allocated for cancellation. A new performance-based stock compensation system (PSU) was also introduced, under which employees will receive shares after three years based on stock price growth.
Over the past three years, Samsung Electronics has accelerated its business transformation by increasing investments in new growth areas such as AI, healthcare, and robotics. This year, together with Samsung C&T, the company invested 110 million dollars (approximately 155 billion won) in the U.S. biotechnology firm Grail, expanding its presence in the bio-healthcare sector. In robotics, Samsung became the second-largest shareholder of Rainbow Robotics, strengthening its capabilities in industrial and service robots. Last year, Samsung Medison acquired the French medical AI startup Sonio, securing medical imaging analysis technology, and expanded its industry reach by acquiring the UK AI company Oxford Semantic Technologies and the music streaming platform Roon.
Industry insiders believe that the end of this year will mark the starting point for a "New Samsung," as the possibility of reviving the control tower is being discussed alongside personnel changes. An industry official commented, "Considering the resolution of Chairman Lee’s legal risks this year and Samsung Electronics’ record-breaking performance, the conditions for renewal are fully in place. If the control tower is reorganized after year-end personnel changes, it will serve as the practical starting line for the 'New Samsung.'"
Samsung Electronics will celebrate its 56th anniversary on November 1. On October 31, the day before, the company plans to hold a founding anniversary ceremony at Suwon Digital City, attended by key executives including Jun Young-hyun, Head of the Device Solutions Division and Vice Chairman, to share business directions and organizational vision. Chairman Lee Jae-yong will manage internal affairs while attending the opening ceremony of the Asia-Pacific Economic Cooperation (APEC) CEO Summit in Gyeongju on October 29, where he will network with global business leaders.
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