Jun Young-hyun, vice chairman and CEO of Samsung Electronics and head of the DS (semiconductor) institutional sector, told executives, "In many ways the company is in a difficult situation and is in the spotlight of the market, but business operations must continue." It is seen as an attempt to tighten internal discipline in step with rising labor-management risks, including the Samsung Electronics union's notice of a general strike.
According to the industry on the 15th, Vice Chairman Jun said at a recent management status briefing for executives, "This is not the time to be complacent," adding, "Do not rest on your laurels, and regard the current boom as the last golden time to restore fundamental competitiveness." Regarding the increase in labor-management risks, he called for "unwavering business operations" and conveyed a message aimed at preventing damage to semiconductor competitiveness.
Samsung Electronics' DS institutional sector posted 5.37 trillion won in operating profit in the first quarter of this year. That is about 94% of total operating profit (5.72328 trillion won) for the period. The securities market is also suggesting that Samsung Electronics' annual operating profit this year could surpass 300 trillion won. However, Vice Chairman Jun stressed that the company should not be complacent with such results and that rigorous reform is needed to achieve a "super-gap in semiconductors."
Vice Chairman Jun, in particular, urged the memory division to "always support customers' businesses with a subordinate mindset." He also emphasized that "results are outcomes created by customers," that customer voices should be reflected in product development, and that there must be no compromise on quality. He was effectively warning against a "supplier superiority" attitude toward big tech customers that are purchasing memory semiconductors as they invest in artificial intelligence (AI) infrastructure.
The Samsung Electronics union plans to launch an 18-day general strike starting on the 21st, demanding bonuses funded by 15% of operating profit and the institutionalization of abolishing the cap. Regarding this, Vice Chairman Jun was quoted as saying, "Each business division must do well at least in its business operations." He instructed executives to minimize internal and external uncertainties by running semiconductor production lines without disruption and maintaining supply stability.