'Creed of Semiconductor Workers' Contest, Samsung Adjusts Speed... "Technology Recovery Before Words"'

Samsung Electronics has halted the revision of the ‘Semiconductor Person’s Creed’ that it had been pushing for the first time in 40 years. The internal slogan contest was abruptly stopped. This decision was made because restoring fundamental technological capabilities was deemed more important than merely changing the phrase ‘mental armament’ for appearances.

View of Samsung Electronics Seocho Building, Seocho-gu, Seoul Photo by Yonhap News

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According to industry insiders on the 21st, Samsung Electronics’ Device Solutions (DS) division, which is in charge of the semiconductor business, recently suspended the internal contest for 10 phrases to be included in the ‘Semiconductor Person’s Creed’ that began last September. A company official explained, "It should be considered as being on ‘hold’ (temporarily suspended)."

Samsung Electronics’ ‘Semiconductor Person’s Creed’ is a set of 10 behavioral pledges created in 1983 to strengthen the resolve of employees when the company first challenged the memory semiconductor business. These include phrases such as ‘Abandon the thought that it can’t be done,’ ‘Set big goals,’ and ‘Once you start a task, cling to it persistently.’ These phrases are printed and still posted throughout Samsung Electronics DS factories. The Creed was a driving force that allowed Samsung Electronics to dominate the global semiconductor market, but recently there have been demands within the company to update it in line with changes in social awareness and generational shifts.

Samsung Electronics originally planned to quickly prepare a new ‘Semiconductor Person’s Creed’ and unveil it spectacularly on December 6 last year, marking the 50th anniversary of the semiconductor business. However, due to disappointing semiconductor business performance and external adverse factors such as the economic downturn, the announcement was not made. The company continued to look for an appropriate time to announce it but to no avail. Meanwhile, some perceived that the phrases did not align with the culture and tendencies of the so-called ‘MZ generation’?younger employees?further delaying the revision. A senior company executive said, "Now is the time to work hard to restore technological competitiveness rather than make any symbolic declarations."

Although the revision of the Semiconductor Person’s Creed has been postponed indefinitely, Samsung Electronics is reviewing and implementing additional measures to unite internal members. Recently, it announced internally that a portion of the excess profit incentive (OPI) for executives will be paid in company shares. Accordingly, from now on, managing directors must choose at least 50% of their bonuses in company shares, vice presidents 70%, presidents 80%, and registered executives 100%. The shares will be granted in January next year, and vice presidents and below cannot sell the shares for one year from the grant date, while the president group cannot sell for two years. If the stock price falls, the number of shares granted will be reduced proportionally to the decline. The Korea Corporate Governance Forum positively evaluated this, saying, "Samsung Electronics has taken its first step toward an advanced country-style compensation system."

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