“In terms of capital flow, the direction of interest rate cuts in the United States is positive. However, it is difficult to be optimistic that consumers will open their wallets next year. It will take time.” (Samsung Electronics DX Division Vice President A)
Samsung Electronics’ global strategy meeting held on the 14th was held in a heavy atmosphere. Next year is expected to be the most important ‘turning point’ for Samsung Electronics, which has suffered an unprecedented drop in performance due to large-scale losses in the semiconductor business. It is said that tensions did not ease throughout the meeting even though news of an interest rate cut from the United States arrived early in the morning. In addition to Samsung, major groups that completed executive personnel and organizational reorganization began establishing strategies for next year through year-end management meetings chaired by new executives.
Samsung Electronics holds a global strategy meeting twice every year in June and December where heads of each business division, executives, overseas regional managers, and corporate heads gather online and offline to share business goals and strategies. In particular, the December meeting is an opportunity to evaluate the year’s management performance and establish forecasts for next year. On this day, under the chairmanship of Device Experience (DX) Division Head (Vice Chairman) Han Jong-hee, Samsung Electronics’ regional managers, company-wide divisions, and Mobile Experience (MX) divisions shared next year’s management outlook and strategies. On the 15th, the video display (VD) and home appliance (DA) business divisions will be chaired by Vice Chairman Han, and on the 19th, a semiconductor-related meeting will be held centered on Kyeong-hyeon Gyeong-hyun, head of the semiconductor (DS) division (president).
At the first day’s meeting, key executives continued to talk about the crisis by making conservative economic forecasts for next year. Regarding the U.S. economy, an analysis suggests that it will be difficult for consumption capacity to recover as most of the various government subsidies provided before and after the pandemic will be cut off starting this year and next year. Although the U.S. Federal Open Market Committee (FOMC) suggested a gradual interest rate cut next year, interest rates on housing loans are expected to remain high. Vice President A said, “Mortgage loan contracts are being renewed in the U.S., but interest rates have risen significantly compared to the past, so consumers’ disposable income is not yet sufficient.”
It is said that some have argued that the pitch should be raised starting from the first quarter (January to March) as there is great uncertainty next year as well. In particular, discussions focused on preparing detailed strategies for the new flagship smartphone ‘Galaxy S24’ series, which will be released in January, 2-3 weeks ahead of previous years. Vice President B, who attended the meeting, said, “The Galaxy S24 Unpack, which is equipped with self-developed artificial intelligence (AI), is the biggest event in the first quarter,” and added, “We discussed strategies with each regional manager on how each business division will achieve a ‘Strong Start’ next year. shared,” he said. He also added, “In the case of the European market, energy prices are gradually stabilizing, so there is an atmosphere where expectations are relatively high on the European market compared to the United States.”
On the 13th (local time), U.S. Federal Reserve Chairman Jerome Powell made the ‘pivot’ official, saying, “We have begun discussing an interest rate cut next year.” Washington = AP NewsHyundai Motor Group concluded its overseas subsidiary heads’ meeting early this month. At the corporate heads’ meeting, held once in the first and second half of the year, heads of corporations around the world discuss global strategies, presided over by Hyundai Motor Company President Jang Jae-hoon and Kia President Song Ho-seong. Hyundai Motor Company and Kia Motors had their ‘best year’ this year, breaking records for the highest operating profit, but it is difficult to relax. This is because the growth of the electric vehicle market, which drove this year’s performance, slowed in the second half of the year (July to December), making the market outlook for next year uncertain. A Hyundai Motor official said, “(At the corporate heads’ meeting) there were various discussions on how to respond promptly to the rapidly changing international situation.” Discussions are expected to have taken place on changes in European electric vehicle-related subsidy policies, trends in electric vehicle demand, and strategies for targeting emerging markets.
LG Electronics will hold a company-wide expanded management meeting at LG Digital Park in Pyeongtaek-si, Gyeonggi-do on the 15th, hosted by President Jo Joo-wan. About 300 executives, including executives from LG Electronics’ headquarters and each business division, overseas regional representatives, and corporate heads, are expected to attend. In this year-end reorganization, discussions on global risks and market strategies for next year are expected to be major topics, including the establishment of an overseas sales headquarters.
SK Group, which has carried out the largest management reshuffle among major groups, has begun reviewing next year’s business plans and specifying ways to overcome the management crisis, centered on the new CEOs of each affiliate. There are also predictions that Chairman Chey Tae-won will increase his involvement in the management of major affiliates such as SK Hynix and SK Innovation. An SK official said, “It is the end of the year, but there is no mood for rest at all. “As the management crisis of major groups was severe this year, we are tightening the reins with new personnel at the center,” he said.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.