[IFA2022] Han Jong-hee "ESG Strategy Announcement Soon... Delay in Display Investment Is a Misunderstanding" (Comprehensive)

Press Conference Before IFA 2022 Opening on the 1st (Local Time)

Company-wide ESG Strategy Announcement Expected Soon
Display Investment Delay Due to Set Misunderstanding

[Berlin (Germany) = Asia Economy Reporter Moon Chaeseok] Han Jong-hee, Vice Chairman and CEO of Samsung Electronics’ DX (Device eXperience) Division, stated on the 1st (local time), "There will soon be a new management announcement related to eco-friendly ESG at the company-wide level of Samsung Electronics."

He made this remark at a press conference on the eve of 'IFA 2022,' Europe’s largest home appliance exhibition, held for five days starting from the 2nd (local time) in Berlin, Germany.

When asked by reporters about the timing of joining 'RE100,' which commits to 100% renewable energy power supply, Vice Chairman Han said, "We have already achieved 100% renewable energy usage on the production side in Europe, the United States, and China since 2020," adding, "We expect to share news about Samsung Electronics’ sustainable development and eco-friendly (management) initiatives very soon, so please look forward to it."

In response to repeated questions from the press, he said, "Regarding the major announcement at the Samsung Group level, we will soon announce that we can implement what we are most concerned about, 'greenwashing'." Regarding a question about Samsung Electronics Vice Chairman Lee Jae-yong’s trip to the UK, he said, "He might come after the UK Prime Minister election on the 5th (local time) and the formation of the cabinet," adding, "I’m not sure about the exact details, sorry."

At IFA 2022, Samsung Electronics demonstrated its commitment to the display business by showcasing Micro LED (light-emitting diode) technology. When asked whether investment in OLED TVs would increase, Vice Chairman Han said, "If consumers want and seek it, we will naturally increase products and strengthen the lineup in terms of capacity (production capability)."

Regarding criticism that the OLED project in the display division is facing setbacks due to indecisiveness in Samsung’s set division (Samsung Electronics DX Division), Vice Chairman Han dismissed it as "a misunderstanding and rumor." He added, "If consumers want and seek it, that is the direction we will take, and we will naturally increase (investment)."

When asked about the delay in domestic introduction despite unveiling OLED-applied monitors at IFA 2022, Vice Chairman Han said, "QD (Quantum Dot) display capacity is limited, so we have been selective, but once that is resolved, we will naturally introduce more given the large number of domestic consumers," adding, "QD display monitors are also being selectively promoted under limited circumstances."

Following the 'Home Connectivity Alliance' (HCA), which includes 13 global home appliance companies such as Samsung Electronics and LG Electronics, there are expectations that the home appliance platform war will heat up. It is anticipated that at the Samsung Developer Conference (SDC) held by Samsung next month, specific details will be announced regarding active promotion of connectivity with other companies’ devices, including LG, to activate SmartThings.

Vice Chairman Han said, "We expect the number of SmartThings subscribers to reach about 500 million in five years (currently about 230 million), and I think there will be an announcement about that potential at next month’s SDC," adding, "We will prepare so that you can experience an upgraded SmartThings at next year’s Consumer Electronics Show (CES)."

Vice Chairman Han emphasized 'CALM TECH,' which automatically handles variables such as device changes once the device is installed. He also pledged that Samsung will achieve this. He said, "(The biggest problem with SmartThings) is having to reconnect every time you change devices," adding, "This is why we emphasize 'CALM TECH,' and there has been significant progress in development, so next year we will be able to show you what true 'CALM TECH' is."

The 'CALM TECH' he refers to means technology that encompasses everything, including devices from other companies. Vice Chairman Han said, "Even if you don’t want to connect, it automatically sends and receives data. I think this is the technology Samsung Electronics has (differentiated from LG ThinQ, etc.)."

When asked whether Vice Chairman Lee gives special advice on DX’s SmartThings like he does for DS (semiconductors), he said, "He always emphasizes investing and expanding employment to contribute to the national economy despite difficult circumstances," adding, "He does not give specific instructions on SmartThings but encourages business people to have confidence and only talks about the big picture."

Regarding mergers and acquisitions (M&A), Vice Chairman Han said, "We are currently looking broadly at securing future growth engines, and there has been progress in many areas," adding, "Please understand that due to the nature of deals, we cannot disclose the industry or company names." Earlier, Vice Chairman Han established a new business task force (TF) directly under him in May. Samsung Electronics announced in its Q1 earnings report last year that "there will be meaningful M&A within three years," and Vice Chairman Han also predicted at CES in January that "good M&A news will come soon."

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