Home > Business > Industry

Samsung Electronics chief warns against complacency after strong earnings

Published: 25 Jan. 2026, 14:02 Updated: 25 Jan. 2026, 14:16

Samsung Electronics Executive Chairman Lee Jae-yong returns to Seoul via the Gimpo Business Aviation Center in Gangseo District, western Seoul, on Jan. 6, after his visit to China as part of Korea's economic delegation. [NEWS1]

Lee Jae-yong, chairman of Samsung Electronics, has urged the company's executives not to become complacent despite a sharp rebound in earnings, stressing that the company faces a "last chance" to restore its competitiveness, industry sources said Sunday.

Lee delivered the message during a recent seminar for Samsung Group executives, following the company's announcement of a record operating profit of 20 trillion won ($13.8 billion) for the fourth quarter amid a semiconductor industry upcycle.

His remarks were aimed at warning some 2,000 executives against settling for short-term performance gains and calling for stepped-up efforts to fundamentally rebuild Samsung's technological edge, according to the sources, who asked not to be identified.

During the seminar, Lee shared key remarks by his late father and Samsung Group Chairman Lee Kun-hee, along with the company's core business strategies, including those related to AI.

The session also revisited the late chairman's well-known "sandwich crisis" theory. In January 2007, Lee Kun-hee warned that South Korea's economy was "sandwiched" between Japan, which was pulling ahead technologically, and China, which was rapidly catching up in terms of cost competitiveness.

Comments by Lee Jae-yong from last year's executive seminar were also recalled, when he said Samsung had "lost its Samsung-like resilience" and called for a "do-or-die" mindset.

At the time, he said, "Korea is still stuck in a sandwich position. What has changed is that the competitive landscape has shifted and the situation has become even more serious," referring to intensifying strategic rivalry between the United States and China.

To navigate the current challenges, Lee urged executives to focus on AI-centered management, securing top talent and fostering innovation in corporate culture.

Samsung Electronics struggled from 2023 through the first half of 2025 due to a downturn in its semiconductor business. However, in preliminary earnings released on Jan. 8, the company signaled a turnaround by posting record quarterly operating profit on sales of 93 trillion won.

Samsung resumed group-wide executive seminars last year for the first time in nine years after holding annual executive seminars from 2009 to 2016.

Yonhap