[The Editors' Verdict] Sending an Email to Chairman Lee Jae-yong

Are We Too Swayed by the 'Sweetness' of High Salaries and Work-Life Balance?

"I am planning to send an email to Chairman Lee Jae-yong. A retired executive who devoted over 30 years to the company must be so frustrated about Samsung Electronics' future to send such an email, so why wouldn't he respond?"

Retired executives of Samsung Electronics worry about the company whenever they meet. A retired executive, Mr. A, recently attended a gathering with colleagues who had shared hardships and joys, and after discussing nothing but concerns about the 'former company,' he decided to send an email to Chairman Lee. Whether they left the company with sufficient compensation or were forced out dishonorably due to personnel decisions, all the retirees gathered in one place shared the same concern for the former company, which seemed unreachable, and concluded that 'we should try sending an email directly.'

Mr. A, who has communicated with Chairman Lee several times via email in the past (although it was probably one-way reporting emails), wants to convey that Samsung Electronics was the company he devoted his entire life to, but now it is heartbreaking to see that current employees not only do not work as hard but also lack a sense of crisis. Even if this is typical thinking of the so-called 'Kkondae' generation in this society, he said he gets very angry whenever he talks with junior managers recently because they seem to be enjoying a happy work life, indulging in the 'sweetness' of high salaries and work-life balance.

In fact, when these retired executives were working at the mid-level ranks of Samsung Electronics, it was natural to work 'Monday through Sunday' and prioritize work over family. From their perspective, the current generation’s attitude of strictly adhering to the 52-hour workweek and being ready to move to a better workplace anytime without the concept of a lifelong company might seem like they are not working hard. The current situation, where unions have formed and even indefinite strikes are carried out during a time when all employees should be loyal to the company, is a future Samsung Electronics that even retired executives could never have imagined.

Samsung Electronics, which has maintained its position as South Korea's number one company, is currently going through a crisis period. In the high-bandwidth memory (HBM) semiconductor competition, it is losing ground to SK Hynix, shaking the global market’s association of 'Samsung Electronics' with 'memory semiconductors.' Internally, employee morale is declining, and generational conflicts are escalating into dissatisfaction. Moreover, the largest union at Samsung Electronics, the National Samsung Electronics Labor Union, has been clashing with management over wages, performance bonuses, and welfare issues such as vacations, and has been conducting a general strike since the 8th.

External views are also unfavorable. Recently, the British economic newspaper Financial Times (FT) reported on the 'crisis at Samsung,' noting that employee morale has dropped and engineers are considering moving to competitor SK Hynix. FT also quoted an anonymous Samsung Electronics semiconductor engineer saying, "There has been little change even after the leadership change."

Samsung Electronics, which failed to respond quickly to the AI semiconductor era, is now in urgent need of action. Following the replacement of the semiconductor business head in May, the company has shown strong will for change by reorganizing and forming an HBM development team. The strategy appears to be to strengthen the dedicated organization in the HBM sector, which has been evaluated as 'lagging behind,' to reclaim market leadership from SK Hynix, which has taken the lead. The focus of the Q&A during the Q2 confirmed earnings announcement and conference call scheduled for the 31st is also likely to be on HBM.

No matter how uncertain Samsung Electronics’ future is now, it cannot force the current generation to work in the way past generations did. However, it is worth reflecting on why retired executives still worry about Samsung Electronics’ future even after leaving the company. In the era of global infinite competition, if you don’t want to lose the crown, you must endure the weight of the crown.

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