Samsung Pledges to Capitalize on Artificial Intelligence Amid Economic Uncertainty

Published March 20, 2024

Amidst predictions of a turbulent macroeconomic landscape, Samsung Electronics' Vice Chairman Han Jong-hee has committed to pushing the boundaries of technological advancement, particularly in the realm of artificial intelligence (AI). This move is aimed at driving sustainable growth and enabling Samsung to adapt to upcoming market shifts.

Samsung's AI Focus Amid Economic Challenges

Han Jong-hee revealed the strategy during his speech at the annual shareholders' meeting in Suwon, Gyeonggi Province. He acknowledged the economic unpredictability but remained optimistic about opportunities arising from revolutionary advancements in technology like the dawn of the AI era.

Han emphasized the importance of early discovery and development of new products and business models, with particular focus on AI, customer experience, and responsible corporate governance. Key future strategies were shared with shareholders, underscoring the company's dedication to these areas.

Dividend Announcements and Shareholder Engagement

During the meeting, Samsung announced plans to distribute dividends worth 9.8 trillion won for the year 2023. This decision falls in line with their revised shareholder return policy that earmarks an equivalent annual amount as dividends over a three-year period, starting from 2021.

The meeting, which marked its 55th year, was available to many via live streaming and electronic voting to ensure inclusivity for all shareholders. Discussions also took place regarding actions needed to boost Samsung's stock prices, which have seen less favorable performance compared to competitors like SK hynix.

Strategies for Growth and Market Recovery

The Vice Chairman addressed shareholder concerns over stock values, promising efforts for improved performance and expressing confidence in the recovery of the chip market and IT demand throughout the year. Meanwhile, Samsung's co-CEO Kyung Kye-hyun shared ambitions to reclaim the top spot in the global chip market, discussing the company's focus on efficient investment and the pursuit of technological excellence.

He responded to inquiries regarding the chip division's profitability, hinting at already seeing profits in January, and projected further positive trends. A shareholder's concern about competition in the High Bandwidth Memory market led to discussions on future strategies for enhanced performance in various chip technologies.

Supporting Small and Medium Enterprises

Samsung showcased its collaboration with smaller enterprises at the meeting, highlighting products and startups that have been supported by Samsung's smart factory initiatives and its C-Lab incubator program. This initiative reflects the company's commitment to coexisting and thriving with smaller businesses and was well-received by the shareholders present at the meeting.

Samsung, AI, Growth