Crisis at Samsung: Board warns of survival or death!

Crisis at Samsung: Board warns of survival or death!

Samsung Electronics, South Korea's largest company, is facing an existential crisis that requires decisive strategic realignment steps, according to CEO Lee Jae Yong. In a video message addressed to 2,000 company executives, he emphasized the urgency and made it clear: "It's a matter of survival or death." Lee urged executives to invest in the future, even if it means losing short-term profits, South Korea's Yonhap news agency reported.

The challenges facing Samsung are significant. The company is losing ground, particularly in the highly competitive market for computer chips and smartphones. The backlog in the area of ​​high-performance semiconductors, especially with regard to the emerging AI market, is placing a heavy burden on the company. In addition, domestic competitor SK Hynix is ​​exerting additional pressure, while the overall disappointing business results for the fourth quarter of 2024 are exacerbating the situation. Analysts forecast that Samsung Electronics' operating profit could fall by more than 20 percent in the current first quarter, as Investment Week reported.

The global market share shift in televisions and smartphones shows that Samsung is in a race against time to regain its former strength. Lee's strong call for investment in the future is seen as a critical step to secure the company's position in the global market and strengthen its innovative strength oe24. The pressure on the South Korean electronics empire is enormous and the next few months will determine whether Samsung manages to reinvent itself and remain competitive.