The Samsung Group recently held a high-level meeting at the Samsung Electronics Leadership Center in South Korea to discuss the challenges faced by the company in light of the expected economic downturn and recession next year. These challenges include falling semiconductor prices, currency exchange rate fluctuations, and potential interest rate hikes.
The meeting was attended by the CEOs of all affiliated companies, but Lee Jae-Yong, the de facto leader of Samsung Group, did not attend. Top executives shared the business performance of the company this year and discussed strategies to accelerate the business in the face of these macroeconomic challenges.
This level of the meeting, where top executives from various Samsung affiliates exchange views, has not been held in six years. It shows the seriousness with which Samsung is taking the potential impact of the economic downturn on its business. The company will need to be proactive in finding ways to mitigate these challenges and continue to grow in the face of economic uncertainty.
Samsung is reportedly deeply concerned about the negative market outlook for next year, particularly in the semiconductor market. This is reflected in the company's financial performance, with Samsung Electronics expected to post a loss in the fourth quarter of 2022 following a decline in the semiconductor market. Its July-September operating profit fell 31.4% year-on-year, according to regulatory filings.
According to research firm FnGuide, Samsung's operating profit in the fourth quarter of 2022 is expected to reach 7.34 trillion won, a 47% decrease from the previous year. The market research also indicates that Samsung's operating profit in the first quarter of 2023 could drop by 57% year-on-year.
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