Samsung Chairman Urges Execs To Embrace 'Death-Defying' Mindset Amid AI Challenges, Says Company Is 'Facing A Do-Or-Die' Issue

Lee Jae-yong, Chairman of Samsung Electronics SSNLF, has urged the company’s executives to adopt a “death-defying” mindset to tackle the challenges posed by the artificial intelligence (AI) era.

What Happened: Lee, in a video message, addressed to around 2,000 executives of Samsung’s affiliates underscored the need for a strategic shift in the company’s approach, drawing on the management philosophies of late founding Chairman Lee Byung-chul and former Chairman Lee Kun-hee, as reported by The Korea Times. Lee, however, did not appear in the video himself.

“Samsung is facing a do-or-die survival issue. We need to reflect deeply from the top,” Lee reportedly stated in the video. He emphasized the urgency of the situation and the need to invest in the future, even at the cost of immediate profits.

As part of the seminar, executives received a crystal plaque the size of a business card, engraved with the words: “Samsung people who are strong in crisis, good at reversal and fierce in competition,” reinforcing the company’s call for resilience.

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Why It Matters: This call for a strategic shift comes at a crucial time for Samsung. Samsung has been dealing with challenges in the AI semiconductor sector, especially in high bandwidth memory (HBM), where it lags behind its competitor SK Hynix Inc. Simultaneously, the Trump administration’s aggressive tariffs created uncertainty for Samsung’s mobile and consumer businesses.

Meanwhile, Chinese news portal Ijiwei reported that Samsung has chosen to suspend future investments in Mexico due to uncertainties surrounding Trump’s proposed tariffs.

Samsung’s fourth-quarter revenue climbed 12% to 75.8 trillion Korean won ($52.2 billion). However, due to market conditions, operating profit declined by 30% quarter-on-quarter to 6.5 trillion Korean won ($4.48 billion).

Earlier this year, Lee was acquitted of fraud and stock-rigging charges, removing a significant legal obstacle as Samsung navigates business challenges.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.