Samsung Chairman Urges Executives Against Complacency Following Q4 Record Profit of $13.8 Billion, Calls It a ‘Last Chance’ to Regain Competitiveness

Samsung Electronics has emerged triumphantly amid a memory crisis, achieving a remarkable operating profit of 20 trillion won (approximately $13.8 billion) in the fourth quarter of 2025. The South Korean tech giant is expected to maintain this upward trajectory, potentially concluding the year with a staggering total of $69 billion in reserves. Despite these impressive figures, Chairman Lee Jae-yong has cautioned his executives against complacency, urging them to seize this pivotal moment as an opportunity for a significant rebound.

Executive Seminar Highlights Samsung’s Journey from Struggles

During a recent seminar attended by around 2, 000 executives, Lee Jae-yong emphasized the importance of not resting on short-term achievements. According to Korea Joongang Daily, he stressed the necessity of strategic efforts to maintain Samsung’s competitive edge in technology. The session included reflections on the words of his late father, Lee Kun-hee, who had once articulated the “sandwich crisis”theory in 2007, describing South Korea’s economic challenges as being trapped between advancing competitors Japan and China.

Lee Jae-yong recalled prior remarks from the previous year’s seminar, reiterating that the company had lost its resilience and called for a “do or die”mentality. To address current market challenges, he urged executives to adopt AI-driven management strategies, attract top talent, and foster a culture of continuous innovation. Reports indicate that Samsung is committed to improving its foundry business profitability by 2027, with progress on its 2nm Gate-All-Around (GAA) technology following partnerships with major players like Tesla.

Notably, Samsung’s foundry operating rate has seen an increase from 50% to 60%.While the non-memory division once suffered losses of 2 trillion won (roughly $1.36 billion) quarterly, these have been significantly reduced to 1 trillion won (about $680 million) in Q3 and Q4 of 2025. This constitutes a remarkable improvement compared to the major downturn experienced in 2023, when Samsung’s semiconductor division faced severe challenges.

Despite Samsung’s gradual recovery, it appears that the company is strategically positioning itself during the ongoing DRAM and NAND flash shortages, which provide a temporary safety net. However, industry experts, such as DigiTimes’ Deputy Director, have mentioned that while the current crisis may offer benefits, it may not be enough for Samsung to effectively compete against TSMC in the foundry sector. Nevertheless, history has shown that companies can make significant comebacks, as seen with Huawei. Hence, the tech community eagerly anticipates the day when Samsung’s resurgence will be solidified in industry history.

Source: Korea Joongang Daily

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