Corporations must fulfill their social responsibilities, not just seek profits. Shareholders want stock price gains beyond dividends. Please show your willingness to support the stock price through share buybacks.
At the 2025 regular shareholders meeting of Samsung SDS held on the 19th at the Samsung SDS Tower in Songpa-gu, Seoul, shareholders urged management to act to boost stock prices. On that day, Samsung SDS approved four agenda items, including the appointment of President Lee Jun-hee and Cloud Services Division Head Lee Ho-jun as internal directors. Also, Samsung SDS emphasized that it will expand its generative artificial intelligence (AI)-based cloud business this year, planning to prepare a GPU-based AI data center for future growth and grow its cloud transition business centered on finance and public sectors.
◇ "The public offering price is 190,000 won, but the stock price has dropped to 120,000 won."
The meeting officially marked the transition from former President Hwang Sung-woo to new President Lee Jun-hee, and shareholders continued to show interest in the company's business direction and stock price support measures. Agenda items including the approval of financial statements, the appointment of Lee Jun-hee and Lee Ho-jun as internal directors, bylaws amendments, and approval of the director's compensation limit were all passed without opposition from shareholders.
However, small shareholders who attended the meeting expressed their frustrations. One shareholder said, "Samsung SDS's performance more than doubled compared to its initial listing in 2014, but the stock price has fallen to 118,500 won, which is far below the public offering price of 190,000 won and the highest price of 400,000 won. It's a dire situation for shareholders who invested in Samsung SDS and are facing significant losses." The shareholder continued, "Four years ago, former President Hwang Sung-woo apologized to shareholders for the stock decline, and now it's even lower than before. I ask President Lee Jun-hee to explain the reasons and solutions for this decline."
In response, former President Hwang Sung-woo said, "As a shareholder who also owns Samsung SDS shares purchased at a price similar to the public offering, I feel the pain together," adding, "I will support the new CEO to work diligently, learning from this lesson." However, he did not elaborate further.
This shareholder pointed out, "During last year's earnings announcement in the third quarter, it was promised that a value-up program would be implemented until January this year, and our small shareholders' group has consistently requested share buybacks and increased dividends, but the stock price continues to fall without any action taken. Please explain why shareholder returns are not being made despite holding cash assets of 6 trillion won."
An Jeong-tae, Samsung SDS Chief Financial Officer, noted, "While share buybacks may be necessary, I believe that utilizing investor capital to expand the company's pie, which will also benefit shareholders and ensure company growth, is more important first." He explained, "We are planning to invest a significant amount in the Gumi AI data center we are preparing, and we will strive to secure management performance so that the stock price rises."
Another shareholder asked, "President Lee Jun-hee purchased 1,000 shares of Samsung SDS last year. I would like to know if there is a willingness to buy an additional 500 shares," adding, "I hope the board members will purchase at least 100 shares, or a minimum of 10 shares." The shareholder continued, "If the company shows its willingness for the stock price as CFO An said, shareholders will wait for the company's growth and invest long-term. Currently, the stock price is low compared to the corporate value, so I ask the company to show its intention first."
◇ Efforts to secure the national AI computing center… Lee Jun-hee "We are considering various options."
During the shareholders meeting, Samsung SDS announced its focus areas for future business. Samsung SDS plans to further expand its generative AI-based cloud business this year to strengthen its competitiveness. The company is preparing a GPU-based AI data center and expanding its cloud transition and operation business, particularly in public and financial sectors. Samsung SDS expressed its determination to secure the government-led national AI computing center.
Lee Jun-hee said, "We are considering various options," adding, "The projects the government is planning include the Daegu center, the Ministry of the Interior and Safety, and the Ministry of Health and Welfare, so we will review them carefully."
An Jeong-tae, Vice President of Samsung SDS Management Support Office, said, "We have a lot of interest in public projects this year, and we are actively trying to delegate the AI data center-related projects that the government is pursuing." He continued, "Former President Hwang Sung-woo focused on strengthening the cloud business and has been developing technology for three years, and we are considering the Gumi AI data center. Once the project is confirmed, we will invest significantly in the AI data center to ensure it leads to management performance."
Earlier, the government announced the execution plan for the establishment of the 'National AI Computing Center' in January. The plan outlines the establishment of a special purpose corporation (SPC) through public-private partnerships, with an investment of about 2 trillion won, to create a national AI computing center that can achieve a performance of over 1 exaflops (EF) by 2027. The main goal of this project is to lay the foundation for the growth of the domestic AI semiconductor industry and AI research, development, and services among the AI computing ecosystem. The participants in the project will be consortia of domestic and foreign cloud, telecommunications, and AI corporations.
Samsung SDS is already recognized for its technological prowess, operating advanced data centers both domestically and abroad. Currently, Samsung SDS has data centers in Suwon, Sangam, Chuncheon, and Dongtan, and operates by leasing the Gumi center and eight telecommunication hub data centers. Since last October, it has been providing high-security public cloud services at the government data center in Daegu.