Samsung revives crisis mindset amid profit boom

Jan 26, 2026, 09:29 am

Samsung Electronics’ rise to the ranks of global top-tier companies has long been driven by a deeply ingrained sense of crisis. Regardless of performance cycles, successive leaders have emphasized urgency and vigilance to push technology-led change and innovation. This philosophy of “crisis management,” championed by late Chairman Lee Kun-hee, is widely credited as a cornerstone of Samsung’s success.

Chairman Lee Jae-yong, who fully returned to the helm after clearing legal risks last year, appears to be continuing that tradition. Despite forecasts that Samsung could post an unprecedented operating profit of more than 100 trillion won this year, Lee has repeatedly stressed the need for caution rather than celebration, with analysts noting a renewed focus on maintaining a technological edge.

According to industry sources on Jan. 25, the Samsung Group recently shared Lee’s message during a leadership seminar titled “Value Education for Restoring the Samsung Spirit,” attended by some 2,000 executives at the vice president level and below. In the message, Lee said, “This is not the time to be complacent just because the numbers look slightly better,” calling the current moment “the last chance to restore competitiveness.”

The remarks echo those Lee delivered at an executive seminar in March last year, when he urged management to reflect deeply and act decisively with a “do-or-die” mindset.

Observers note strong parallels with the leadership style of Lee Kun-hee, who in October 2013, during an event marking the 20th anniversary of Samsung’s “New Management” initiative, warned executives to “rearm themselves with a sense of crisis and never grow complacent,” even as Samsung Electronics was posting record operating profits of over 36 trillion won at the time.

The renewed emphasis on caution comes amid increasingly bullish projections for Samsung Electronics. After a prolonged downturn in its semiconductor business, the company has benefited from a global chip “supercycle,” driving a sharp rebound in earnings. Last year, Samsung’s annual operating profit exceeded 43 trillion won, while its share price climbed past the 150,000-won mark.

Still, challenges remain. Growth in certain semiconductor segments, as well as in set businesses such as TVs and smartphones, has shown signs of slowing. Industry watchers interpret Lee’s message as an effort to rein in internal optimism and refocus attention on core technological competitiveness.

In semiconductors, high-bandwidth memory has been powering the recovery of the memory business, but Samsung continues to lag behind TSMC in the non-memory foundry sector. According to Counterpoint Research, TSMC and Samsung held foundry market shares of 39 percent and 4 percent, respectively, in the third quarter of last year. While TSMC expanded its share by six percentage points year-on-year, Samsung’s slipped by one point.

In the set business, the TV segment has been losing momentum amid weak demand for IT devices and intensifying competition. Even the smartphone division, long a key profit driver, is facing margin pressure due to rising component costs, including memory. Operating profit at Samsung’s DX division, which oversees set businesses, rose by only 100 billion won year-on-year in the third quarter.

Looking ahead, Samsung is expected to further sharpen its “technology super-gap” strategy. Mass production of next-generation HBM4 memory chips is nearing completion, while the non-memory business has secured large-scale orders based on advanced 2-nanometer processes.

In consumer electronics, Samsung is focusing on differentiating user experience through AI integration to stimulate demand. With the bulk of its 12 trillion won inheritance tax payments now completed, expectations are also rising for stronger accountability in management.

An industry official said Samsung’s core strength lies in proactive risk management and technological capability, adding that the company is likely to outline management strategies built on those principles at this year’s shareholders’ meeting.

#Samsung Electronics #Lee Jae-yong #crisis management #Lee Kun-hee #semiconductor business