Samsung's Strategic Moves: Tackling AI Challenges and Investor Concerns

Samsung Electronics is addressing shareholder concerns following its poor performance amid the AI boom. The company is planning major mergers and acquisitions to regain competitiveness in the semiconductor market, albeit facing regulatory challenges. Samsung aims to recover its market position by 2025.

Samsung Electronics announced intentions to pursue significant mergers and acquisitions in a bid to recover from last year's dismal stock performance. The South Korean tech giant has been under scrutiny as it struggled to capitalize on the artificial intelligence boom, impacting its earnings and share prices.

At a recent meeting, shareholders demanded action to boost stock value, prompting co-CEO Han Jong-hee to apologize for failing to keep pace with the rapidly evolving AI semiconductor market. Han disclosed plans to expand the company's stock-based performance system to more employees, enhancing shareholder value.

Looking forward, Samsung co-CEO Jun Young-hyun assured shareholders that 2025 is targeted as a year to reclaim competitiveness, despite foreseen economic uncertainties and challenges in semiconductor mergers. The company faces additional pressure from U.S. export restrictions, given China's significance as a key market.

(With inputs from agencies.)