Jeon Young-hyun "To Restore Samsung Semiconductor's Status, a New Organizational Culture Must Be Created"

Posted on the company bulletin board
Introducing 'Core Work' as the new organizational culture
Emphasizing communication, discussion, honesty, and execution
"Recovery of competitiveness possible through unique culture"
Also a message that "OPI payment rate will be high"

Jeon Young-hyun, Vice Chairman and Head of Samsung Electronics Device Solutions (DS) Division, proposed the 'CORE Work' through a post on the company’s internal bulletin board on the 1st, stating, "We aim to create a new semiconductor organizational culture to regain the status of the best semiconductor company."

'CORE Work' means to Communicate effectively for problem-solving and synergy between organizations, Openly Discuss to reach conclusions through intense debates regardless of rank or position, Reveal problems honestly, and Execute decisions thoroughly based on data.

In his message, Vice Chairman Jeon emphasized, "Although we are facing difficult circumstances, I firmly believe that we can quickly restore competitiveness based on the unique communication and discussion culture of semiconductors, accumulated research experience, and know-how." He added, "In the second quarter of this year, we achieved significant improvements in sales and operating profit compared to the previous quarter and the same period last year," but also noted, "This performance improvement is due more to favorable market conditions than fundamental competitiveness recovery."

He further stated, "The DS division is currently confronted with the urgent task of fundamentally restoring competitiveness," and warned, "If we rely on market conditions, we will inevitably fall into a vicious cycle repeating the situation of last year."

Vice Chairman Jeon also stressed, "We must rebuild the semiconductor’s unique intense discussion culture that communicates transparently by acknowledging what does not work regardless of rank or position, challenging what needs to be challenged, and openly revealing issues."

He also conveyed a message that the payout rate of the Over Performance Incentive (OPI) bonus is expected to be higher than anticipated. He said, "With a profit of 8.4 trillion won achieved in the first half, operating profit is expected to improve significantly compared to the 2024 management plan target," adding, "The originally announced management plan set the target operating profit at 11.5 trillion won with an OPI payout rate of 0-3%, but as the semiconductor market recovers and profit margins improve, if all employees work together, the OPI payout rate will be considerably higher than expected."

He concluded, "Let’s make the second half of this year an unprecedented opportunity for the DS division," and stated, "I will lead by example to quickly restore competitiveness and do my best together with all executives to achieve better management performance."

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