Samsung Electronics "Firm Market Position, Will Maintain Super-Gap with Large-Scale Investment" (Comprehensive)

Samsung Electronics to Hold 51st Annual General Meeting of Shareholders on the 18th at Suwon Convention Center

Kim Ki-nam, Vice Chairman and CEO of Samsung Electronics, is delivering the opening remarks at the 51st General Meeting of Shareholders of Samsung Electronics held on the 18th at the Suwon Convention Center in Suwon, Gyeonggi-do. Photo by Kang Jin-hyung, Suwon aymsdream@

[Asia Economy Reporter Changhwan Lee] Samsung Electronics expressed its determination to maintain its market-leading position across all sectors, including semiconductors, smartphones, and consumer electronics, at its shareholders' meeting.

Samsung Electronics held its 51st regular shareholders' meeting on the 18th at the Suwon Convention Center in Yeongtong-gu, Suwon-si, Gyeonggi-do.

Kim Ki-nam, Vice Chairman and CEO of Samsung Electronics (Head of the DS Division), who chaired the meeting, showed confidence in the foundry (semiconductor contract manufacturing) market, a next-generation semiconductor growth area.

Vice Chairman Kim said, "Recently, many foundry customers are coming to Samsung," adding, "We will ensure that Samsung Foundry can advance further through leadership in advanced process competitiveness."

He stated, "Last year, the global economy stagnated, and business conditions remained challenging due to sluggish memory market conditions and intensified competition in the set business. The company's operating performance slowed compared to the previous year, recording consolidated sales of 230 trillion won and operating profit of 28 trillion won."

Vice Chairman Kim explained, "Despite these conditions, the semiconductor business continued ultra-gap technological innovations such as 10-nanometer-class DRAM and EUV 7-nanometer processes. The CE (Consumer Electronics) division is leading lifestyle innovation with products like QLED 8K TVs, vertical TVs, and Bespoke refrigerators. The IM (IT & Mobile) division has maintained the No. 1 position in smartphones by launching foldable phones and led the next-generation communication market by commercializing 5G for the first time in the world."

He added, "Through these efforts, the company's brand value in 2019 surpassed $61.1 billion, ranking 6th according to Interbrand's evaluation, marking the first time it exceeded $60 billion and solidifying its status as a global leading company."

Vice Chairman Kim also explained the company's efforts to enhance shareholder value. He said, "To strengthen responsible management by the board, we appointed an outside director as chairman for the first time, further improving corporate governance. Recognizing the importance of compliance and ethical management, we established a Compliance Committee as an independent external organization, building a strict global-level compliance management system."

He continued, "To lead the future regardless of environmental changes, we will secure business opportunities through continuous technological innovation such as AI (Artificial Intelligence) dedicated semiconductors and foldable phones, as well as investments in future growth base technologies like system semiconductors and Quantum Dot (QD) displays."

Regarding investment plans, he stated, "For system semiconductors, we plan to invest 133 trillion won in R&D and production facilities by 2030, and for QD displays, we will invest 13 trillion won by 2025 as we actively promote the business."

On concerns about the spread of COVID-19, he explained, "We are responding systematically and proactively to minimize global supply chain risks such as production and sales disruptions and impacts on partners."

Regarding labor union issues, Vice Chairman Kim said, "We will guarantee lawful labor activities," adding, "The company intends to make further efforts to foster a healthy labor-management culture more proactively."

Kodongjin, CEO of Samsung Electronics (from the left), Hyunseok Kim, CEO of Samsung Electronics, and Kinyam Kim, Vice Chairman and CEO of Samsung Electronics, are attending the 51st Annual General Meeting of Shareholders of Samsung Electronics held at the Suwon Convention Center in Yeongtong-gu, Suwon-si, Gyeonggi-do on the morning of the 18th. Photo by Jinhyung Kang, Suwon. aymsdream@

◆ Kim Hyun-suk, President of Samsung Electronics: "No impact of COVID-19 on product production" = Kim Hyun-suk, President and CEO of Samsung Electronics (Head of the CE Division), said at the shareholders' meeting, "At the beginning of COVID-19, there were some component issues in China, but currently, there is no disruption in production at all."

However, President Kim emphasized, "While COVID-19 is subsiding somewhat in our country, it is just beginning worldwide. We have not yet grasped how much COVID-19 will affect distribution or consumers, and we will prepare through further research."

Regarding performance, he explained, "Last year, the CE division recorded sales of 44.8 trillion won and operating profit of 2.6 trillion won, both increasing compared to the previous year. Despite rapid changes in the business environment and intensified competition, Samsung Electronics firmly maintained the No. 1 global market share in TVs and refrigerators."

He added, "Last year, the video display business expanded sales of premium products such as TVs and signage, resulting in growth in both sales and profitability. In particular, TVs achieved the No. 1 market share in 2019 as well, maintaining the global No. 1 position for 14 consecutive years. The home appliance business increased both sales and profits compared to the previous year by expanding sales of premium products despite uncertain external environments."

He also said, "In refrigerators, we continuously launched new products such as BESPOKE and Family Hub, achieving the global No. 1 position for eight consecutive years."

This year, the CE (Consumer Electronics) market is expected to rapidly advance IoT (Internet of Things) integration of CE products as connections between devices expand based on next-generation networks such as 5G, and big data and AI (Artificial Intelligence) technologies are incorporated amid growing external uncertainties.

President Kim said, "Samsung Electronics plans to further solidify its leadership in the TV market with 'QLED 8K' TVs and lifestyle products," adding, "Samsung will also expand sales of lifestyle TVs reflecting millennial characteristics, such as 'The Frame' and 'The Serif.'"

He continued, "The home appliance business plans to lead the premium market by adding innovation to existing appliances such as refrigerators, washing machines, and air conditioners," and said, "Samsung Electronics will continue to launch innovative home appliances based on consumer research to contribute to improving consumers' quality of life."

At the entrance of the general meeting hall during the 'Samsung Electronics Shareholders' Meeting' held on the 18th at Suwon Convention Center in Gyeonggi, a health check station is being set up. / Suwon = Photo by Kang Jin-hyung aymsdream@

◆ Ko Dong-jin, President of Samsung Electronics: "Smartphone market contraction expected due to COVID-19" = Ko Dong-jin, President and CEO of Samsung Electronics (Head of the IM Division), said at the shareholders' meeting, "This year, the smartphone market is expected to contract due to the impact of COVID-19, while demand for 5G smartphones is expected to grow."

President Ko added, "Samsung Electronics plans to expand its 5G lineup from flagship models to the A series in the wireless business and strengthen cooperation with global partners to build an expanded service ecosystem."

He explained, "We plan to lead the market with differentiated premium products. The recently launched 'Galaxy S20' series features the largest image sensor ever and incorporates AI to enable clear high-definition shooting in any environment. The vertically folding 'Galaxy Z Flip' offers a compact design with strong portability and provides a user experience optimized for a new form factor."

Regarding performance, President Ko stated, "Last year, the IM division recorded sales of 107 trillion won, a slight increase compared to the previous year, despite a difficult environment with slowing global economic and mobile market growth. Operating profit was 9.3 trillion won, down compared to the previous year."

He emphasized, "Samsung Electronics solidified its leadership in 5G mobile communications by achieving the world's first commercialization of 5G with the launch of the 'Galaxy S10 5G,' the world's first 5G smartphone. We also opened a new mobile category by introducing the innovative foldable smartphone 'Galaxy Fold,' which satisfies both large-screen experience and portability."

President Ko said, "The network business plans to lead next-generation communication technology and innovation in the 5G era through proactive 5G technology development," adding, "Based on 5G 'end-to-end solutions' from chipsets to terminals and network equipment, and leveraging domestic 5G nationwide commercialization experience, we will actively pursue overseas 5G businesses."

He continued, "Samsung Electronics plans to bring significant changes to consumers' lives and provide new experiences through the convergence of 5G, AI, and IoT technologies in the Fourth Industrial Revolution era," and said, "As an industry leader, despite fierce market competition and uncertainties in the business environment, we will lead the next decade with the latest technologies and innovative products."

This content was produced with the assistance of AI translation services.