Samsung Electronics Chairman Lee Jae-yong warned executives against complacency despite the company's expected record fourth-quarter earnings, calling it the "last chance to restore competitiveness." The message came during executive seminars that began last week for more than 2,000 Samsung Group leaders.
Samsung posted preliminary Q4 2025 sales of 93 trillion won ($63.95 billion) with operating profit reaching 20 trillion won ($13.8 billion), signaling a semiconductor industry rebound after struggles from 2023 through mid-2025. The company will announce full results during an earnings call this week alongside rival SK hynix.
"This is not the time to be complacent just because the numbers have improved a bit," Lee told executives, according to industry sources. His warning referenced the late Chairman Lee Kun-hee's "sandwich crisis theory," which described Korea's position between Japan's technological leadership and China's cost competitiveness.
The current chairman emphasized that while the competitive landscape has shifted to U.S.-China rivalry, Korea remains in a similar squeeze. Industry observers interpret this as recognition that Samsung faces both strategic challenges and increased cost burdens amid geopolitical tensions.
Samsung's semiconductor recovery appears driven more by improving market conditions than technological breakthroughs, with AI services creating strong DRAM demand. Weakening profitability in home appliances and smartphones highlights the risks of settling for short-term gains.
Lee identified three key priorities: AI-centered management, securing top talent, and corporate culture innovation. The executive seminars, organized by Samsung's Human Resources Development Institute, resumed last year after a nine-year hiatus and previously ran annually from 2009 to 2016.
During the sessions, executives received crystal plaques engraved with phrases such as "From crisis to a new leap forward" or "Beyond Crisis to Renewed Growth" and their names. Last year's plaques carried the message "Samsung people who are strong in crisis, skilled at comebacks, and relentless in competition."
The chairman's repeated emphasis on technological competitiveness suggests Samsung aims to pursue fundamental changes rather than temporary recovery. His "last chance" phrasing underscores that missing this opportunity could mean losing the chance for resurgence entirely.
External experts delivered lectures on organizational management and leadership during the seminars. The training included screenings of videos featuring Lee Kun-hee's management philosophy, first shown earlier this month at a dinner gathering of Samsung affiliate heads hosted by Lee Jae-yong.
Samsung's message reflects concerns that global market uncertainties remain unresolved despite improved performance. The company's turnaround comes as the semiconductor industry enters an upcycle, but executives face pressure to rebuild technological edge rather than rely on favorable market conditions, as seen in recent strong financial results from Samsung subsidiaries.
