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Samsung Chief Warns Executives: "Last Chance" to Regain Tech Edge

Samsung Electronics Chairman Lee Jae-yong has warned company executives not to become complacent despite a sharp rebound to record quarterly earnings. He stressed the company faces a "last chance" to restore its fundamental technological competitiveness. Lee urged a focus on AI-centered management, talent acquisition, and innovation, revisiting his late father's "sandwich crisis" theory about competitive pressures. The warning comes as Samsung signals a turnaround after a prolonged downturn in its semiconductor business.

Key Points: Samsung Chief Warns Against Complacency After Record Profit

  • Record profit amid chip upcycle
  • Warning against short-term gains
  • Focus on AI and top talent
  • Revisiting "sandwich crisis" theory
  • Call for "do-or-die" mindset
2 min read

Samsung chief warns against complacency after strong earnings

Samsung Chairman Lee Jae-yong urges executives to rebuild tech edge, citing a "last chance" and AI focus despite record quarterly earnings.

"last chance to restore its competitiveness - Lee Jae-yong"

Seoul, Jan 25

Lee Jae-yong, chairman of Samsung Electronics Co, 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 on 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 (US$13.8 billion) for the fourth quarter amid a semiconductor industry upcycle, reports Yonhap news agency.

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 artificial intelligence (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-centred 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 January 8, the company signalled 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.

- IANS

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Reader Comments

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Sarah B
As someone working in tech in Bangalore, I see this firsthand. The pace of change in AI is insane. If a giant like Samsung feels it's their "last chance," it shows how critical it is to keep innovating. Indian IT firms should take note and double down on R&D, not just service delivery.
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Rohit P
Respect to Lee Jae-yong for this warning. After such a huge profit, it's easy to get complacent. Many Indian family-run businesses could learn from this. The focus on AI and top talent is spot on. Hope our homegrown champions are listening! 🇮🇳
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Priyanka N
The part about losing "Samsung-like resilience" hits hard. It's a reminder that brand legacy alone isn't enough. You have to keep earning your place. I wonder if any Indian electronics or auto companies are having similar internal discussions about the China+1 strategy and AI.
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Michael C
While the sentiment is good, I find it a bit dramatic to call it a "last chance" after posting record profits. It feels like typical corporate motivational talk. The real test is whether this translates to actual risk-taking in innovation, not just seminars. Actions speak louder than words.
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Kavya N
So true! In the Indian context, we are also in a sandwich – between the West's advanced tech and China's manufacturing scale. The focus on corporate culture innovation is key. Bureaucracy kills agility. Hope our startups and big corporates are fostering the right environment for top talent to thrive. 🤞

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