Samsung exits China home appliance and TV sales amid rising Chinese competition
Synopsis
Samsung Electronics is pulling out of China's home appliance and TV sales market after profits more than halved — from 300 billion won to 168 billion won — as Chinese rivals tighten their grip. A simultaneous leadership reshuffle signals the company is in full strategic reset mode on its display business globally.
Key Takeaways
Samsung Electronics is withdrawing its home appliance and TV sales business from China , according to industry sources.
Its mobile , semiconductor , and medical equipment operations in China will continue unaffected.
Samsung's China sales unit net profit fell sharply to 168 billion won (US$116 million) last year, down from 300 billion won the previous year.
Lee Won-jin , former head of global marketing, has been named the new head of Samsung's visual display business unit.
He replaces Yong Seok-woo , who moves to an adviser role within the device experience division.
The moves come amid intensifying competition from Chinese manufacturers challenging South Korea's dominance in the display market.
Samsung Electronics has decided to withdraw its home appliance and TV sales business from China, according to industry sources cited by Yonhap news agency. The South Korean tech giant has reportedly notified its vendors in China of the decision, marking a significant retreat from one of the world's largest consumer electronics markets.
What Stays, What Goes
While Samsung is pulling out of the home appliance and TV sales segment, its mobile, semiconductor, and medical equipment businesses will continue to operate in China, the sources said. The withdrawal is confined to the consumer electronics sales division, not the company's entire China footprint.
Why Samsung Is Pulling Out
The decision comes as Samsung has been grappling with increased operational costs amid global economic uncertainties and steadily losing market share to domestic Chinese manufacturers. Samsung's sales unit in China posted a net profit of 168 billion won (approximately US$116 million) last year — a sharp decline from the 300 billion won recorded the previous year. The erosion in profitability has been a key driver behind the strategic reassessment. Earlier, Samsung Electronics had publicly acknowledged it was reviewing a business reorganisation in response to heightened competition in the home appliance sector and growing tariff-related risks.
Leadership Reshuffle at the Top
Alongside the China exit, Samsung has announced a leadership shake-up in its visual display business. Lee Won-jin, who previously headed the global marketing office, has been named the new head of the visual display business unit. He takes over from Yong Seok-woo, who has been appointed as adviser to the head of the device experience division.
In a company statement, Samsung said Lee is expected to
Point of View
Expanded on quality, and now dominate their home market in TVs and appliances. What is notable is the timing: Samsung is pulling out of sales while keeping semiconductors and mobile in place, suggesting it still sees China as a production and component market even as it concedes the consumer battleground. The leadership reshuffle at the visual display unit signals that the pressure is not just in China — it is global. The real question is whether Lee Won-jin can engineer a turnaround in markets outside China before the margin erosion spreads further.
NationPress
12 May 2026
Frequently Asked Questions
Why is Samsung withdrawing its home appliance and TV sales business from China?
Samsung is exiting China's home appliance and TV sales market due to rising operational costs, global economic uncertainties, and mounting competition from Chinese manufacturers. The company's China sales unit net profit fell sharply from 300 billion won to 168 billion won in the last reported year.
Will Samsung completely exit China?
No. Samsung is withdrawing only its home appliance and TV sales business. Its mobile, semiconductor, and medical equipment operations in China will remain in place, according to industry sources.
Who is Lee Won-jin and what is his new role at Samsung?
Lee Won-jin is a Samsung executive who previously headed the company's global marketing office. He has been appointed the new head of Samsung's visual display business unit, taking over from Yong Seok-woo, who moves to an adviser role.
How much profit did Samsung's China sales unit make last year?
Samsung's sales unit in China reported a net profit of 168 billion won (approximately US$116 million) last year, down sharply from 300 billion won the previous year, reflecting the impact of competition and cost pressures.
Which Chinese companies are challenging Samsung in the TV and appliance market?
The sources and Samsung's own statements point broadly to Chinese manufacturers intensifying competition in both the home appliance and display segments, though specific company names were not cited in the available disclosures.
