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Samsung’s Existential Battle: Lee Jae-yong Urges a ‘Do-or-Die’ Mindset

Eun by Eun
PUBLISHED: March 17, 2025 UPDATED: March 21, 2025
in AI, GM, Samsung, South Korea, Ssangyong
0
Samsung’s Existential Battle: Lee Jae-yong Urges a ‘Do-or-Die’ Mindset

Samsung Electronics Chairman Lee Jae-yong has called on executives to embrace a “survive-or-perish” approach to tackle the mounting challenges of the AI-driven era. Addressing around 2,000 executives through a video message during recent training sessions, Lee underscored the importance of unwavering resolve, referencing the Korean saying “Sa-jeuk-saeng” (one must be willing to risk everything to succeed).

Lee warned that Samsung is facing a critical crisis, highlighting concerns over a “structural decline in competitiveness.” He pointed out that the company has lost its relentless drive, which once set it apart. Once a leader in high-bandwidth memory (HBM) and foundry services, Samsung now faces increasing competition, with rivals narrowing or surpassing its market lead.

Lee’s message showed the urgency of the crisis, warning that even dominant players can disappear if they fail to adapt. He cited that emerging innovators have overtaken 24 of the top 30 global companies from the early 21st century due to their inability to keep pace with industry shifts. Samsung, he cautioned, is not immune to such risks, emphasizing that swift and strategic responses are essential for survival.

The company’s challenges span multiple sectors, including TVs, smartphones, semiconductors, and display panels. Due to competition from low-cost Chinese brands, its TV market share declined from 30.1% in 2023 to 28.3% in 2024. Similarly, its DRAM market share dropped from 43.1% in 2022 to 41.3% in 2024. The smartphone display segment also saw a sharp decline, slipping from 50.1% in 2023 to 41.3% in 2024. Analysts suggest that these downward trends highlight structural weaknesses across Samsung’s key business areas.

Lee directly addressed these concerns, attributing the memory division’s struggles to adapt to the AI era to complacency. He criticized the foundry business for its low utilization rates due to technological shortcomings and pointed out that the device experience (DX) division was falling behind in product quality. Given the long development cycles in semiconductors, he stressed that Samsung’s current investment and innovation strategies would determine its future standing in the industry.

Lee outlined a three-pronged strategy focusing on talent acquisition, accountability, and mindset reinforcement to navigate this crisis. He emphasized that the company’s response to the situation—not the crisis itself—would be crucial in shaping its trajectory. This approach echoes the transformative leadership of his late father, Lee Kun-hee, who famously declared in the 1993 Frankfurt Declaration that Samsung must “change everything except your wife and children” to compete globally.

The seminar also served as a symbolic effort to instill resilience in Samsung’s leadership. Executives received a small crystal plaque engraved with motivational words, reinforcing the need for strength in adversity, adaptability, and fierce competitiveness. With the company facing growing pressure in AI semiconductors and foundry services, Lee’s message signals a decisive push for structural reforms and long-term technological leadership.

Tags: Samsung

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