Samsung Electronics, in response to mounting challenges from Chinese competitors in the realms of smartphones, appliances, and displays, has unveiled a strategic initiative to identify and leverage future revenue streams. Jun Young-hyun, former leader of Samsung Electronics’ semiconductor memory division and recent executive director overseeing the expansion of the battery business at Samsung SDI, will spearhead this venture.
This newly announced unit, slated for launch later this year, aims to consolidate diverse business opportunities scattered across affiliated companies. The objective is to foster the development of innovative ventures from a forward-looking perspective. Notably, this move echoes a similar strategy implemented in 2009 by Samsung’s former chairman, Lee Kun-hee, who established a division dedicated to exploring new business avenues. The resulting focus on biomedical, storage batteries, light-emitting diodes, medical equipment, and solar panels bore fruit, with the biomedical and battery sectors achieving substantial growth.
Facing declining profitability in its core smartphone, appliance, and display businesses due to intensified competition from China, Samsung, under the leadership of current chairman Lee Jae-yong, is strategically steering the company towards novel ventures. This proactive approach is seen as a preemptive measure to counterbalance the impact of Chinese advancements in the semiconductor industry, one of Samsung’s primary revenue generators. The move underscores Samsung’s commitment to cultivating businesses with reduced susceptibility to competitive pressures.
In parallel, Samsung also revealed its annual executive personnel announcements, retaining Han Jong-hee as head of smartphones and home appliances, and Kyung Kye-hyun as head of semiconductors, signaling stability amidst these transformative strategic shifts.
