Is Samsung’s Chief Right to Warn Against Complacency After Strong Earnings?
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Synopsis
In a powerful message to executives, Samsung's chairman Lee Jae-yong emphasizes the need for vigilance and innovation despite recent strong earnings. With fierce competition on the horizon, he warns this may be the last chance to reclaim Samsung's technological leadership. Discover the insights shared during this crucial seminar.
Key Takeaways
- Lee Jae-yong warns against complacency despite strong performance.
- Samsung faces a 'last chance' to regain competitiveness.
- Focus on AI and innovation is critical.
- Historical insights from Lee Kun-hee serve as guiding principles.
- Record fourth-quarter earnings indicate potential recovery.
Seoul, Jan 25 (NationPress) Lee Jae-yong, the chairman of Samsung Electronics Co, has strongly advised the company’s leadership to avoid falling into a state of complacency despite a significant recovery in earnings. He emphasized that the company is facing a 'final opportunity' to regain its competitive edge, according to industry sources on Sunday.
Lee conveyed this message during a recent seminar for Samsung Group executives, following the announcement of a record operating profit of 20 trillion won (approximately US$13.8 billion) for the fourth quarter, buoyed by an upswing in the semiconductor sector, as reported by Yonhap news agency.
His comments were directed at around 2,000 executives, warning them against relying solely on short-term performance improvements and urging them to intensify efforts to fundamentally enhance Samsung's technological superiority, according to the sources, who wished to remain anonymous.
During the seminar, Lee referenced pivotal insights from his late father, Lee Kun-hee, who was the chairman of Samsung Group, alongside the company’s fundamental business strategies, especially those related to artificial intelligence (AI).
The session also revisited the late chairman's renowned 'sandwich crisis' theory. In January 2007, Lee Kun-hee cautioned that South Korea's economy was 'sandwiched' between Japan, which was advancing technologically, and China, which was swiftly improving in cost competitiveness.
Lee Jae-yong’s reflections from an executive seminar last year were also highlighted, where he remarked that Samsung had 'lost its Samsung-like resilience' and called for a 'do-or-die' mentality.
He stated, 'Korea is still stuck in a sandwich position'. He added that the competitive landscape has shifted, making the situation even more dire, particularly in light of the escalating strategic rivalry between the United States and China.
To tackle the current challenges, Lee urged executives to prioritize AI-driven management, attract top-tier talent, and cultivate a culture of innovation within the company.
Samsung Electronics faced challenges from 2023 through the first half of 2025 due to a downturn in its semiconductor sector. However, in preliminary earnings disclosed on January 8, the company indicated a recovery by reporting a record quarterly operating profit on sales of 93 trillion won.
After a nine-year hiatus, Samsung resumed group-wide executive seminars last year, having previously conducted them annually from 2009 to 2016.
Point of View
It is crucial to highlight the proactive stance taken by Samsung's leadership in navigating the challenges posed by global competition. Lee Jae-yong’s call for resilience and innovation aligns with the pressing need for South Korean companies to adapt and thrive in an increasingly competitive market.
NationPress
25/01/2026
Frequently Asked Questions
What prompted Lee Jae-yong’s warning to Samsung executives?
Lee emphasized the need for vigilance and innovation following a significant rebound in earnings, citing it as a crucial moment for Samsung to restore its competitive edge.
What was the operating profit reported by Samsung for the fourth quarter?
Samsung reported a record operating profit of 20 trillion won (approximately US$13.8 billion) for the fourth quarter.
What does Lee Jae-yong believe is necessary for Samsung's future?
He believes that focusing on AI-driven management, attracting top talent, and fostering innovation are essential for Samsung to navigate current challenges.
