[Editorial] Lee Jae-yong’s desperate warning: “The last chance to regain competitiveness”

Lee Jae-yong, chairman of Samsung Electronics, recently warned, "We must not become complacent just because the numbers have improved a little," adding that this may be "the last chance to regain our competitiveness." He delivered this message at a "value education" seminar aimed at restoring "Samsung identity," held for some 2,000 executives at vice president level and below from all Samsung affiliates.
The executive seminar, which had been discontinued for nine years, was revived last year and is being held again this year. It could be dismissed as a routine corporate event, but as Lee’s remarks suggest, the current mood at Samsung Electronics is closer to a sense of crisis and urgency than to stability and satisfaction. The company’s Device Solutions Division posted a record loss of 14.88 trillion won in 2023, but then achieved a dramatic turnaround with its first-ever quarterly operating profit of 20 trillion won in the fourth quarter of last year. Even so, the situation remains far from easy.
Above all, global competition among semiconductor companies is intensifying. Taiwan Semiconductor Manufacturing Company (TSMC) is far ahead of Samsung in the foundry business, and in High Bandwidth Memory (HBM), Samsung is still trailing the technology of domestic rival SK hynix. The chase from Chinese semiconductor firms is accelerating as well, to the point where Samsung can no longer confidently say it will not be overtaken.
To break through this reality and achieve a new leap forward, Lee is said to have highlighted three key tasks: management centered on Artificial Intelligence (AI), securing top talent, and innovating corporate culture. AI, needless to say, is becoming central in every field. It is reshaping the entire paradigm of the economy and industry by surpassing human capabilities across all stages, from product design to manufacturing. Going forward, how effectively a company harnesses AI will be a key measure of its progress.
Securing talent is the most critical condition. Innovation in companies and products ultimately depends on people, so Samsung must strive to attract the best talent from both at home and abroad. Hyundai Motor, which has even appointed foreigners as its chief executive officer (CEO), is serving as a leading example for other firms. We are now in an era where companies must recruit global talent at every level, not just among entry-level staff. Corporate activities and product markets expanded worldwide long ago, and it is no longer viable to rely solely on domestic human resources.
Corporate culture innovation is about building an efficient organizational structure that enables a team of top-tier talent to deliver maximum performance. Any company that aims to maintain superior management and product quality must engage in constant, rigorous oversight. It is unrealistic to expect world-class results to emerge from a lax and complacent atmosphere.
For Samsung to maintain its status as the world’s leading electronics company, unceasing innovation is essential. It must read the tides of change ahead of others, develop technologies and products first, and continue to lead the market. If it grows comfortable with the present, it can quickly fall behind in the competition and be left out. This is the message Lee wants to drive home to the executives who run the company’s day-to-day operations. With Samsung Electronics’ share price having recently tripled, this is no time for employees and executives to be setting off fireworks. They need to steel themselves even more.