Last year, Kim Ki-nam's revenue was 108 trillion won (about 100 billion U.S. dollars), accounting for 45% of Samsung Electronics' total revenue. The operating profit of this sector was 40.3 trillion won, accounting for Samsung Electronics' annual operating profit. Of 75%.
At this year's general meeting of shareholders, Samsung's shareholders approved a 50:1 stock split on the company's shares and appointed a new board of directors and outside directors.
About 400 Samsung Electronics Co., Ltd. and Samsung Electronics co-CEO, Kwon Oh-hyun, the outgoing vice chairman of the board of directors, attended the shareholders meeting. Samsung Group successor, Samsung Electronics Vice President Li Zai Lee Jae-yong did not participate in this general meeting. Since his release on early February in February this year, Lee Jae-hyun has been extremely low-key.
Lee Sang-hoon, former chief financial officer of Samsung Electronics, was elected chairman of the board and marks the first time that the tech giant has separated the positions of chairman of the board and CEO. In addition to Kim Ki-nam, Kim Hyun-suk, head of Samsung’s consumer electronics business, and mobile Business executive Koh Dong-jin also joined the board, while former co-CEOs Kwon Oh-hyun, Yoon Boo-keun, and Shin Jong-kyun withdrew from the board of directors.
At the general meeting of shareholders, Quan Wuyi stated: 'We plan to separate the roles of the board of directors and chief executive officer to strengthen accountability management and keep the board in a central position to enhance the independence of the board.' Measures, the board of directors can more objectively assess management performance and enhance the trust between shareholders. He also stressed that this move can also make the board a more effective decision-making body.
The following are some of the question and answer sessions of this general meeting of shareholders:
Investors: How does Samsung react to the rise of Chinese companies in the chip field?
Kim Ki-nam: Chinese companies have invested heavily in almost all types of semiconductors (including memory chips), but the technical barriers in this area are much higher than in other industries. To overcome these difficulties, it is necessary to It is not just a large-scale short-term investment. Samsung will make every effort to stay ahead in this field.
Investors: Has Samsung resolved the recent power outage in the factory in Pyeongtaek?
Kim Ki-nam: I would like to express my sincere apologies to this matter. Two weeks ago, the factory in Pyeongtaek suffered blackouts, causing a loss of about 50 billion won. Now everything has been fixed, but despite our best efforts, There may be a possibility of blackout again. Nevertheless, we will continue to work hard to prevent future blackouts.
Investors: Due to the competition from LG OLED TVs, Samsung’s share in the high-end TV market has declined. What is the company’s response strategy?
Kim Ki-nam: Shipment data show that Samsung still ranks first in the high-end TV market with a price above $1,500. We will launch other high-end products, such as 8K TV, to continue to lead the high-end market and eliminate leadership in our market. Concern.
Investors: Why is there a price gap between (Samsung) TVs sold in the United States and TVs sold in Korea under the same conditions?
Kim Ki-nam: This is because there are differences in product configuration and retail market conditions, and after-sales service is slightly different. When it comes to this, the company will work closely with the local sales team to assess this situation.
Investors: Samsung’s share of the Chinese smartphone market has fallen to single digits. What are your responses?
Koh Dong-jin: I apologize for the declining market share in China. We replaced the local leader when the share fell to single digits, streamlined three or two sales organizations to speed up decision making. We need some time to see See if these measures work.
In addition, the Chinese market is more complex than the Korean market. Samsung is trying different approaches. The latest flagship products, Galaxy Note 8 and Galaxy S9, have helped us increase market share in recent months.