Samsung Electronics Strengthens Competitiveness in Chinese Market... Establishes 'China Business Innovation Team'

Han Jong-hee, Head of DX Division (Vice Chairman) Direct Organization
Dedicated to Innovation in Key Business Areas such as Smartphones and Home Appliances
Possibility of Vice Chairman Lee Jae-yong's On-site Business Trip

The Samsung flag is fluttering in the wind in front of the Samsung Electronics Seocho building. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Kim Heung-soon] Samsung Electronics is reportedly establishing a new control tower called the 'China Business Innovation Team' to strengthen its competitiveness in the Chinese market.

According to industry sources on the 19th, Samsung Electronics recently formed this team directly under Vice Chairman Han Jong-hee, head of the DX (Device Experience) division, through an organizational restructuring. The China Business Innovation Team consists of a company-wide support part handling HR and marketing, and a business division part. Under the business division, there are the MX (Mobile Experience) division responsible for mobile and the Consumer Electronics & Visual Display (VD) division.

Industry insiders view this new organization as Samsung Electronics' effort, led by Vice Chairman Han, to oversee the entire China business and enhance the competitiveness of its major business units, including smartphones, which have struggled in China for several years.

According to global market research firm Counterpoint Research, Samsung Electronics' market share in the Chinese smartphone market exceeded 20% in 2013-2014 but fell below 1% starting in 2019. Additionally, with Apple surpassing Vivo to become the number one in the Chinese market last October, there is analysis that the local competitiveness of the Samsung Galaxy brand itself has declined.

As of the third quarter of this year, China accounts for about 30% of Samsung Electronics' total sales, the highest proportion. In particular, China represents about 40% of semiconductor exports, making it the most important market. Samsung Electronics currently operates semiconductor factories in Xi'an, Shaanxi Province, and Suzhou, including NAND flash production lines and back-end processes (packaging).

In the business community, it is anticipated that Samsung Electronics Vice Chairman Lee Jae-yong may visit China and other countries during an overseas business trip at the end of this year. Since the trial regarding the unfair merger of Samsung C&T and Cheil Industries and the accounting fraud allegations against Samsung Biologics, held every Thursday at the Seoul Central District Court, will enter a two-week winter recess after the session on the 23rd, it is expected that this period could be used to address current issues. Previously, Vice Chairman Lee visited the Xi'an semiconductor plant in May last year to encourage employees.

However, Samsung Electronics has drawn a line, stating, "There is no confirmed information regarding Vice Chairman Lee's visit to China or any overseas business trip."

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