Samsung Electronics CEO apologizes for stock price fall, vows to strengthen competitiveness
SEOUL, March 19 (Yonhap) -- Han Jong-hee, chief executive officer (CEO) and vice chairman of Samsung Electronics Co., on Wednesday apologized for recent declines in stock prices and vowed to make constant efforts to regain market leadership.
"I sincerely offer an apology to our shareholders for the disappointing stock prices," Han said during a general shareholders meeting in Suwon, south of Seoul.
He acknowledged that Samsung Electronics has struggled to adapt to the rapidly evolving artificial intelligence (AI) semiconductor market and failed to secure dominant competitiveness in key sectors, such as smartphones, TVs and home appliances, last year.
He pointed out that stock prices have remained weak due to concerns over the company's technology capabilities, as well as rising geopolitical uncertainties, including U.S. tariff policies.
"Our executives and employees are well aware of the importance of meeting market expectations for earnings and technological competitiveness," he said.
"We will do our best to enhance our core technologies and deliver solid financial performance to restore investor confidence."
Samsung Electronics stock prices declined throughout last year, falling from around 80,000 won (US$55) at the beginning of 2024 to around 55,000 won at the end of the year.
Foreign investors have remained net sellers of Samsung Electronics shares for seven straight months since August.
The sharp drop was attributed to the company's lackluster performance in the flagship semiconductor sector, particularly its failure to capitalize on the AI-driven boom in high bandwidth memory (HBM).
Rival SK hynix Inc. has significantly outpaced Samsung in this crucial market segment.
For the fourth quarter of 2024, SK hynix posted an operating profit of 8.08 trillion won, surpassing Samsung Electronics' 6.5 trillion won.
It marked the first time SK hynix has outperformed Samsung Electronics, whose diverse business spans from home appliances to mobile devices and semiconductors, in quarterly operating profit.
brk@yna.co.kr
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