Samsung's Executive Calls for Steady Management Ahead of Union Strike

Jeon Young-hyun, Vice Chairman of Samsung Electronics and head of the Device Solutions (DS) division, recently urged executives to maintain steady management in light of the union's announcement of a general strike. He emphasized the need to remain vigilant and enhance core technological competitiveness despite achieving record results in the first quarter.

According to industry sources, during a management briefing for executives on May 8, Jeon stated, "We should not rest on our laurels and must view the current boom as the last golden opportunity to restore our fundamental competitiveness."

The recovery in the company's performance is attributed to external factors such as the semiconductor supercycle. The DS division reported an operating profit of 53.7 trillion won in the first quarter, accounting for 94% of the company's total operating profit of 57.2 trillion won. This figure represents an increase of more than eight times compared to the same period last year, driven by rising prices and sales of high-bandwidth memory (HBM) and general DRAM and NAND products.

While analysts predict that Samsung Electronics will surpass 300 trillion won in operating profit this year, Jeon has interpreted this outlook as a call for rigorous reforms to maintain a "semiconductor super gap."

He also remarked, "The company is facing various challenges and is under scrutiny, but management activities must continue, and each business unit must perform well in their operations."

As concerns grow over the union's planned general strike, Jeon's comments suggest a commitment to ensuring that semiconductor production lines operate without disruption while minimizing uncertainties both domestically and internationally.

If the general strike proceeds, the economic impact could reach tens of trillions of won. Global investment bank JP Morgan recently reported that the strike could reduce Samsung's annual operating profit by over 40 trillion won. Union estimates also indicate that production disruptions could result in damages ranging from 20 trillion to 30 trillion won.