Samsung Battles Internal and External Challenges with Extra Working Day

A six-day work week was introduced for executives of Samsung Group affiliates

According to the business community, on the 17th, all executives of Samsung Group affiliates decided to work six days a week, starting as early as the third weekend of April.

Samsung Electronics, the core subsidiary of the Samsung Group, already has over half of its executives working six days a week in the support and development departments. Now, the rest of the executives will also join in.

One industry insider said, “Samsung Electronics, the first subsidiary of the Samsung Group, has produced relatively good results for the first quarter, but there is a greater concern within the company that the real crisis is just beginning. This is why other executives who share this sense of crisis have recently decided to participate in the six-day work week willingly.”

Among the affiliates, executives from electronics-related affiliates such as Samsung Electro-Mechanics, Samsung SDI, Samsung SDS, and Samsung Display will also start a six-day workweek system from the third or last week of April.

In the industry, it’s well known that executives from Samsung C&T, Samsung Heavy Industries, and Samsung E&A, the three design, procurement, and construction (EPC) companies, have been working six days a week since 2024. It has been confirmed that financial subsidiaries, starting with Samsung Life Insurance, are also considering joining the six-day workweek declaration soon.

Not all employees are participating in the six-day workweek. Samsung has explicitly prohibited the accompanying attendance of junior employees due to executive attendance, as it may lower work efficiency if employees come to work due to executive work schedules.

A senior industry official predicted, “With Samsung, the top company in the industry, officially entering emergency management, it is highly likely that other major corporations will follow suit.”

The decision for Samsung Group’s high-ranking executives to work six days a week is seen as a response to the escalating sense of crisis due to the uncertain business conditions surrounding Samsung.

Indeed, with Iran’s airstrikes on Israeli territory increasing the likelihood of a full-scale war, the graphs of exchange rates and oil prices, which have a significant impact on the economy and prices, are fluctuating wildly. Additionally, the gap between the U.S. and China is deepening.

Experts have diagnosed that the results of this year’s U.S. election could have a powerful influence, enough to completely overturn the long-term plans that our companies have been planning.

Amid these unpredictable external variables, concerns about the company being pushed into uncontrollable situations are emerging. An industry insider said, “Even a small mistake could cause a top-tier company like Samsung to crumble.”

Furthermore, Samsung Group is grappling with the escalating offensive from the Samsung Electronics union, adding insult to injury.

The largest union at Samsung Electronics, the National Samsung Electronics Union, held a cultural event on the 17th in front of the Component Research Building (DSR) at the Samsung Electronics Hwaseong site, where about 2,000 union members (according to the union) gathered to strengthen solidarity.

When the company proposed a wage increase of 5.1%, the union countered with 6.5%, escalating the pressure. According to the union, they have already secured the legal right to strike within the law’s framework.

An official from a semiconductor equipment manufacturer explained, “Unlike general manufacturing companies, once production and operations in the semiconductor line stop, it takes more time and cost to resume operations,” adding, “Samsung is facing the greatest crisis both externally and internally.”

Even excluding domestic and international risks, Samsung Electronics’ performance is far from optimistic. Especially in the Semiconductor (DS) division, which accounts for more than half of Samsung Electronics’ annual operating profit, it has shown a deficit throughout the fourth quarter, leading to a disgraceful result.

Although the market rebounded in the first quarter of this year, leading to a shift to a surplus, it is predicted that operating at 100% production capacity, similar to the current situation, will be difficult as external uncertainties increase.

Moreover, as the technological gap with other companies narrows, Samsung’s position as the industry leader is becoming precarious. Last year (2023), the High Bandwidth Memory (HBM), which gained prominence through the rapid growth of the AI market, lost its top position to SK Hynix, denting its pride.

An official in the semiconductor industry explained, “In the field of general-purpose DRAM, where Samsung had an unrivaled top spot, SK Hynix and U.S. Micron Technology have come close to Samsung’s technology level.”

With worsening situations occurring one after another, Samsung Electronics executives have even mentioned the extraordinary measure of freezing salaries at the beginning of this year. Still, internally known internal is a long way until business normalization.

An official from Samsung Electronics stated, “Rather than identifying problems in the semiconductor demand downturn, the executives first rearming themselves mentally is an expression of determination to overcome various crises this year.”