Lee Jae-yong Emphasizes Technology and Talent... Management Strategy Meeting to Focus on Crisis Response Discussions

Samsung Electronics Kicks Off First Half Management Strategy Meeting Season
SK, Hyundai Motor, LG Also Discuss Countermeasures for Global Crisis Situation

[Asia Economy Reporter Park Sun-mi] Samsung Electronics Vice Chairman Lee Jae-yong has returned home after an 11-night, 12-day business trip to five European countries. Starting from the 21st of this month, Samsung Electronics will hold its first half management strategy meetings by division. It is expected to be an opportunity for executives of each business division to share the sense of supply chain crisis caused by the Russia-Ukraine war that Lee felt during his European trip, and to discuss countermeasures as well as the importance of advanced technologies such as semiconductors and batteries.

◆ JY Emphasizes Crisis Response, Technology, and Talent After European Trip = From the 7th to the 18th, Lee visited customers, partners, and research institutes in five countries: Hungary, Germany, the Netherlands, Belgium, and France, engaging in broad cooperation and discussions on next-generation semiconductor technology, batteries, and Samsung’s future growth engines. He visited the Samsung SDI battery plant in Hungary and then moved to Germany, where he toured BMW, one of Samsung SDI’s customers, and Harman Kardon, an automotive electronics company.

At the meeting with BMW executives, it is speculated that discussions took place regarding expanding the supply of electric vehicle batteries and establishing a battery joint venture. Efforts to secure advanced semiconductor technology were also made. In The Hague, Netherlands, Lee met with Dutch Prime Minister Mark Rutte to discuss cooperation plans to resolve global semiconductor supply chain issues, and visited the headquarters of semiconductor equipment maker ASML to talk about ensuring smooth supply of EUV lithography equipment essential for fine process implementation.

In the latter part of the trip, he visited imec, Europe’s largest comprehensive semiconductor research institute located in Belgium, where he observed cutting-edge semiconductor process technology as well as research and development sites in advanced fields such as artificial intelligence (AI), bio-life sciences, and future energy. In Paris, France, he met with sales and marketing staff of Samsung Electronics’ local subsidiary to hear about on-site difficulties and other issues.

What Lee emphasized during his European trip were three main points: crisis response (to uncertainty), technology, and talent. Immediately after returning, he told reporters, "There is a lot of confusion, change, and uncertainty in the market, but what we need to do is bring in good people and create a flexible culture so that the organization can adapt to predictable changes. And then, no matter how much I think about it, first, second, and third is technology."

◆ Global Strategy Meeting Becomes a Crisis Response Meeting = Accordingly, Samsung Electronics’ first half global strategy meetings starting on the 21st are expected to include broad discussions on ▲ supply chain disruptions ▲ consumer sentiment contraction due to inflation ▲ advanced technology competitiveness ▲ talent and organizational culture improvement.

The DX (Device Experience) division, responsible for IT, mobile, and consumer electronics, will hold its first half strategy meeting from the 21st to the 23rd, and the DS (Device Solutions) division, responsible for semiconductors, will hold its meeting from the 27th to the 29th. Since only one strategy meeting was held at the end of the year after the COVID-19 outbreak, this marks the resumption after three years since 2019. Although Lee will not attend in person, since the meeting is held after he emphasized the three key areas of crisis response, technology, and talent during his European trip, it is expected that executives will share awareness and prepare countermeasures.

In particular, the DX division, which is facing challenges such as supply chain disruptions and economic recession impacting sales of home appliances and mobile products and flexible operation of production lines, is likely to discuss difficulties faced by global subsidiaries and response strategies. In the DS division, a core area of Lee’s emphasis on ‘technological capability,’ it is expected that they will review and forecast changes in the semiconductor market in the second half of the year and check the progress of facility investments at the second foundry in Taylor, Texas, and the third plant at the Pyeongtaek campus.

Meanwhile, other large companies are also recognizing the global crisis situation and have begun holding strategy meetings to respond.

SK Group Chairman Chey Tae-won ordered a reconstruction of the management system at the ‘2022 Expanded Management Meeting’ on the 17th. He pointed out the need to improve the corporate structure to ‘SK Management System 2.0,’ which is directly linked to corporate value amid an uncertain management environment such as the global economic crisis. Hyundai Motor Group will also hold a meeting next month to review regional and global overall strategies. Earlier, LG Group has been holding a month-long strategy report meeting under the chairmanship of Chairman Koo Kwang-mo since the 30th of last month.

An industry official explained, "Since the global crisis situation applies to all domestic companies, most of the strategy meetings to be held this time will be venues for discussions on crisis response."

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