Samsung Electronics Launches Global Strategy Meeting... What Measures Will Emerge?

Meeting of DS·DX Business Divisions Held on the 20th
Finding Breakthroughs in Complex Crisis Situations
Chairman Lee Jae-yong Absent

Samsung Electronics began its global strategy meeting on the 20th. Attention is focused on what strategies Samsung Electronics, which is struggling with deteriorating performance due to the global economic downturn, will present to prepare for the business environment in the second half of the year.

The Device Experience (DX) division, led by Vice Chairman Han Jong-hee, will hold a three-day meeting starting with the Mobile Experience (MX) division at the Suwon plant on the 20th, followed by the Visual Display (VD) and Home Appliance divisions on the 21st, and then the entire company on the 22nd. The Device Solutions (DS) division, led by President Kyung Kye-hyun, will hold a meeting at the Hwaseong plant on the same day.

Photo by Yonhap News

The global strategy meeting, held twice a year in June and December under the leadership of division heads, is a gathering where Samsung Electronics’ domestic and overseas executives from each division come together to review the business conditions and exchange opinions on new growth engines and new business plans. Samsung Electronics held the meetings online for two years after COVID-19 but resumed offline meetings last year. This year, about 500 executives, including key overseas subsidiary heads, will attend in person to brainstorm ways to overcome the crisis due to poor performance amid the global economic downturn.

First, the DX division is expected to focus on discussing ways to improve performance amid consumer downturns in the TV and home appliance sectors. Samsung Electronics’ VD (Visual Display) and home appliance division operating profit in the first quarter of this year was 190 billion KRW, about a quarter of the 800 billion KRW recorded in the same period last year. Vice Chairman Han is expected to review market changes and discuss sales strategies for key products in the second half and ways to enhance competitiveness.

The MX division, which contributed to defending performance in the first quarter with strong sales of the Galaxy S23, plans to share marketing strategies for the Galaxy Z Fold5 and Flip5, scheduled to be unveiled in the second half of the year. They will also check the preparation status for the upcoming new product launch event, 'Galaxy Unpacked,' next month. This will be the first time Samsung Electronics holds Galaxy Unpacked in Korea.

The DS division will also review the performance of each business unit and second-half strategies and seek ways to overcome the semiconductor crisis. With semiconductor deficits expected in the second quarter as well, discussions are expected on expanding new global foundry orders based on the second-half market outlook, mid- to long-term technology development roadmaps, and future market preemption strategies. President Kyung recently shared on his social media (SNS) about business trips to five cities including Tel Aviv, Israel; Munich, Germany; and Amsterdam, Netherlands, emphasizing, "We cannot create future technology alone," and "We must envision the future through long-term innovation and partnerships with various stakeholders."

Meanwhile, Chairman Lee Jae-yong, who departed for business trips to France and Vietnam on the 18th, is known not to attend the meeting as in previous years but will be briefed on business strategies later.

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