Samsung, Korean conglomerates prioritize AI innovation, sustainability in 2024

Samsung and other Korean conglomerates prioritize AI innovation, sustainability, and demographic-driven changes for 2024, focusing on overcoming challenges in evolving markets and pursuing global expansions.

Samsung Electronics CEO and Vice Chairman Han Jong-hee speaks during the company's kick-off ceremony for the new year, held Tuesday in Suwon, Gyeonggi. [SAMSUNG ELECTRONICS]

With global chip demand showing signs of recovery after a grim year of losses, Samsung Electronics is prioritizing establishing unrivaled technological leadership, future-proof adaptability and a robust corporate culture in 2024.

The electronics maker also identified AI, sustainability and demographic-driven lifestyle changes as some of its main areas of focus for the new year.

“Let’s prioritize enhancing our fundamental competitiveness, such as unparalleled ‘super-gap’ technology, which has propelled Samsung Electronics forward so far,” the company’s two CEOs — Vice Chairman Han Jong-hee heading the electronics division, and President Kyung Kye-hyun, head of the chip division — said in a joint New Year's message on Tuesday.

The executives also called to “incorporate generative AI not only to innovate device experiences [of Samsung products] but also to transform the way we work.”

SK hynix CEO Kwak No-jeong also emphasized AI innovation in his New Year message, saying that “SK hynix has positioned itself as a first mover in the AI era and a key player for global AI clients through its top-notch technology capabilities centered on HBM,” or high bandwidth memory.

The CEO added that “the persistent uncertainties in the global market are making crises the norm,” stressing that the chipmaker “will secure the future market demand by bolstering its strength through profitability-oriented business operation and bold investments in next-generation technologies and products.”

Hanwha Group Chairman Kim Seung-youn [HANWHA]

Hanwha Group Chairman Kim Seung-youn also acknowledged the challenging outlook in the business environment this year, saying that “we need to set our unique goal point and innovate like never before, in order to go beyond mere survival and become a global champion.”

He added that “we need to take a hard look at whether past performances across the group's businesses were driven by the larger change in the market,” urging Hanwha employees to become the “great challenger.”

GS Group Chairman Huh Tae-soo suggested that this year “may be the start of an economic downturn,” yet emphasized that the time of crisis could be “an opportunity for new businesses,” citing the conglomerate’s future growth engines involving bioenergy and EV charging system.

Posco Holdings Chairman Choi Jung-woo underscored sustainability in the new year’s business goals, which include the establishment of a low-carbon steel manufacturing system and the expansion of its EV battery material businesses in partnership with global companies.

Posco Chairman Choi Jeong-woo [POSCO]

“Though the business environment we face this year is very uncertain, we will be able to seize the opportunities for growth if we innovate our business structure with a focus on eco-friendliness and enhance our capabilities,” Choi said.

LS Group Chairman Koo Ja-eun called for the strong execution of the group’s Vision 2030 initiative, which was announced last year and is centered on carbon-free energy.

“In order to successfully pursue new businesses in carbon-free energy, which is the heart of our Vision 2030, as well as battery, EV and semiconductor, we need creative talents who can deliver performance with bold execution,” Koo said, adding that “we also need people who rise to the challenge to develop new markets in the United States, India, Indonesia, Saudi Arabia and Ukraine, where reconstruction projects will take place.”

LS Group Chairman Koo Ja-eun speaks during a kick-off ceremony for the new year on Tuesday in Anyang, Gyeonggi. [LS]

Hanjin Group Chairman Walter Cho expressed his determination to bring the long-awaited acquisition and merger of Asiana Airlines, first announced in 2020, to a successful conclusion this year.

Hanjin Group Chairman Walter Cho [HANJIN GROUP]

"The launch of the integrated airline will be a colossal long-term growth driver for us,” Cho said. “Through the acquisition of Asiana Airlines, schedules will be reasonably reallocated, and surplus aircraft can be deployed to new destinations, providing customers with a broader range of choices."

In the retail sector, concerns over a global economic downturn and domestic consumption stagnation due to high-interest rates were underscored.

"We have entered into an era of unprecedented global economic uncertainty,” Lotte Group Chairman Shin Dong-bin said.

"To not rely on past success and take a leap forward, we must create opportunities within crises,” Shin said, calling for bold restructuring, increased AI adaptability, and reinforced technological investments, including generative AI.

Similarly, CJ Group Chairman Sohn Kyung-shik acknowledged the “unprecedented” challenges.

“New and innovative competitors like Netflix and Coupang are threatening our business model, and despite fast-paced pursuits by latecomers, we have not responded effectively,” Sohn said, urging “the restoration of a sense of urgency” to address the evolving business landscape.

GS Retail CEO Huh Yeon-soo, leveraging the company's evolution into a comprehensive retail entity over half a century, presented a visionary goal of "growing into a 100-year company." Given the rise in one- to two-person households, Huh highlighted shifts in shopping patterns to smaller supermarkets and convenience stores, and the transition of media consumption from TV to mobile — and emphasized business structure innovation.

Korean beauty companies are encountering challenges in their key sales channels like the Chinese market and duty-free sales.

"This year, LG Household & Health Care aims to overcome the past two years' challenges and mark a turning point for renewed growth," LG Household & Health Care CEO Lee Jung-ae said. As part of their global expansion strategy, the CEO unveiled plans for the entry of their flagship royal court cosmetics brand, The History of Whoo, into the United States.

On the other hand, Samyang Foods and Nongshim, seeing success overseas with their ramyeon products, presented blueprints for further global expansion.

"One thing we learned from the creation of Buldak Ramen is that when envisioning the future, relying solely on the past is not viable," Samyang Roundsquare CEO Kim Jung-soo said. She emphasized a three-year plan to "pour all capabilities into leading the future food culture under their core food-based capabilities."

Nongshim CEO and President Lee Byung-hak called for a "new perspective to create a success formula in the global market."

Notably, he highlighted achieving the leading market share in the U.S. ramyeon market.

BY SHIN HA-NEE, SEO JI-EUN [shin.hanee@joongang.co.kr]