Samsung Faces Internal Strife Amid HBM Competitiveness Concerns Concerns are growing that internal conflicts at Samsung Electronics could undermine its competitiveness in high-bandwidth memory (HBM). The Device Solutions (DS) division is threatening a total strike over demands for increased bonuses, while the Device Experience (DX) division expresses feelings of deprivation amid declining profitability and the withdrawal from the Chinese TV and home appliance market.According to industry sources, the Samsung Electronics union's joint action committee plans to initiate a total strike starting May 21 if wage negotiations with management fail. A key issue is the demand for performance-based bonuses linked to operating profits, spurred by improved results in the DS division due to rising AI semiconductor demand.The mood within the DX division is tense. Samsung recently confirmed its withdrawal from the Chinese TV and home appliance market, a decision attributed to aggressive pricing from local competitors and weak demand. Many in the DX division perceive this as a retreat from a core business.Given that TVs and home appliances have long been vital to Samsung's global brand value, the anxiety among DX employees is palpable. While attention focuses on the DS division's impressive performance and the expanding AI semiconductor market, DX employees feel their contributions, especially amid risks like U.S. tariffs, are being overlooked.The recent departure of the Donghaeng Union, which has many members in the DX division, from the joint action committee highlights dissatisfaction over the prioritization of DS bonus discussions at the expense of DX issues. The Donghaeng Union has called for fair representation and compliance with obligations regarding information sharing and non-discrimination.A DX representative noted, "With nearly half of the company's workforce in the DX division, it will be difficult for management to fully accept the demands centered on the DS division. I believe the DS employees should make concessions before more extreme conflicts arise."Industry analysts warn that Samsung's internal strife could negatively impact its competitiveness in HBM and other memory semiconductors. The DS division struggled in HBM competition until late last year but has since begun to regain its footing, though it has yet to establish fundamental competitiveness.Experts emphasize that major tech clients like NVIDIA prioritize quality, yield, and delivery stability when selecting suppliers. If a strike occurs, the damage to customer trust could be more severe than short-term production disruptions.Concerns are mounting that repeated halts in production due to strikes could lead to lower yields and compromised quality. HBM, which involves stacking multiple DRAM chips and advanced packaging, requires stringent process stability and quality control. Inconsistent yields could result in losing key clients.An anonymous Samsung executive stated, "The union argues that a strike could result in losses of tens of trillions of won, while external estimates suggest that halting semiconductor production could cost 1 trillion won daily. HBM ultimately hinges on yield, and if production lines are repeatedly halted, we risk losing our status as a reliable supplier to key clients like NVIDIA, which is the most serious risk." 2026-05-07 23:03:39

Samsung Faces Internal Strife Amid Semiconductor Boom Once a source of self-deprecating humor, the term "Samsung after" referred to non-electronics subsidiaries, highlighting the allure of Samsung Electronics' performance and treatment. Recently, however, a new hierarchy has emerged within Samsung Electronics, deepening divisions among its business units.Concerns are growing that the discontent among employees in other divisions toward the Device Solutions (DS) sector's demands for average bonuses in the millions of won could harm organizational cohesion.According to industry sources, labor disputes over excessive compensation demands from the DS sector's union are escalating, raising the possibility of a general strike. Meanwhile, employees in the Device Experience (DX) sector, feeling sidelined, are increasingly fatigued. While the DS sector thrives on rising demand for AI semiconductors, the DX sector, responsible for mobile, TV, home appliances, and telecommunications, struggles amid global consumer slowdowns and cost pressures.In the first quarter, Samsung Electronics reported an operating profit of 57.2 trillion won, with the DS sector contributing 53.7 trillion won. The DX sector, excluding mobile, has seen stagnant or declining performance, with the home appliance division recording losses.This performance gap is shaking organizational morale, as the semiconductor division has a stronger justification for demanding bonuses, while the DX sector is focused on cost-cutting and defending profitability. An industry insider noted, "The economic conditions for DS and DX within Samsung Electronics are completely different," warning that the bonus dispute could lead to feelings of relative deprivation between the divisions.The rift is also manifesting as labor conflicts. The super-large union, dominated by DS members, is leading joint protests, while the DX-based union has withdrawn from the joint action committee. While this appears to be a difference in strategy, many in the industry interpret it as a buildup of dissatisfaction among DX members who feel excluded from DS-centric bonus negotiations.Management has expressed concern as well. With fierce competition from rivals like SK Hynix and Micron, there is a growing fear that a strike could disrupt production and damage customer trust, especially as the company seeks to regain its competitive edge in high-bandwidth memory (HBM). On the same day, Vice Chairman Jeon Young-hyun and CEO Roh Tae-moon emphasized the need to ensure future competitiveness during wage negotiations.Analysts suggest that Samsung Electronics faces a dual challenge: leveraging the semiconductor boom to strengthen overall competitiveness while also resolving internal conflicts.A Samsung employee, who requested anonymity, remarked, "The push for a general strike is primarily driven by DS, leading to increased dissatisfaction among DX employees. Nowadays, it feels like DS and DX are different organizations with conflicting interests rather than parts of the same company." 2026-05-07 23:02:40

Samsung Electronics Faces Challenges in Home Appliances and Mobile Business Samsung Electronics' Device Experience (DX) division is seeking ways to overcome poor performance in its non-semiconductor businesses. While focusing on strengthening its mobile sector, the company is also beginning to streamline underperforming areas like home appliances.On May 7, industry sources reported that Samsung has decided to halt sales of TVs, monitors, washing machines, vacuum cleaners, and refrigerators in China. The company officially notified employees at a meeting the previous afternoon and has informed local distribution channels and partners of this decision. Alongside the sales halt, adjustments to local staffing and organizational restructuring are expected.Changes are also occurring within the domestic TV business. Lee Won-jin, the head of global marketing, has been appointed as the new head of the Video Display (VD) division. Lee is known for successfully launching platform businesses like Samsung TV Plus, an ad-supported streaming service. The strategy aims to diversify revenue beyond hardware to focus on software-based platforms. A Samsung representative stated, "The focus is on enhancing platform capabilities rather than drastic organizational changes," adding that the shift towards a service-oriented business model will accelerate.The mobile sector is also facing difficulties. Samsung's combined operating profit for its Mobile Experience (MX) and Network (NW) divisions in the first quarter of this year was 2.8 trillion won, a 34.88% drop from 4.3 trillion won in the same period last year. The primary cause of this decline is the surge in memory semiconductor prices, which are expected to continue rising, making profitability management crucial.Despite these challenges, Samsung plans to enhance its mobile competitiveness by continuing to innovate its Galaxy S series and foldable products, as well as strengthening AI features. The company is preparing to launch smart glasses in the second half of the year and aims to increase the premium product share by enhancing features in wireless earbuds and Galaxy Watches.While halting appliance sales in China, Samsung will continue its mobile operations there. The company plans to release locally tailored smartphones, such as the Galaxy W series, and promote Galaxy AI features. However, it remains uncertain whether this will help regain market share against local competitors like Huawei and Xiaomi.The struggling Network division is undergoing personnel changes and increasing technology investments. In 2024, about 700 employees from the Network division were reassigned to other divisions to improve organizational efficiency. Concurrently, the company is focusing on securing next-generation technologies for the AI era. Since establishing the Next-Generation Communication Research Center under Samsung Research in 2019, it has been researching 6G technologies. Recently, it achieved transmission speeds nearly twice as fast as 5G in the 7 GHz frequency band, a key candidate for 6G.An industry insider noted, "The DX division is looking to improve performance by expanding its B2B revenue model beyond traditional B2C. With increasing low-cost competition from Chinese firms, relying solely on hardware sales shows clear growth limitations, necessitating a shift towards platforms, services, and AI."* This article has been translated by AI. 2026-05-07 23:02:10

KOSPI Soars Thanks to Semiconductors: Is 'Samsung-Hynix' Dependence a Risk or Benefit? Taiwan is home to TSMC, the world's largest foundry, which dominates the economy, accounting for 46% of the total market capitalization of the Taiwanese stock market. A similar concentration is raising concerns in South Korea, where the KOSPI index's reliance on 'Samsung-Hynix' (Samsung Electronics and SK Hynix) is causing fears of market polarization. Critics argue that the semiconductor sector is creating a misleading perception of overall market strength. However, supporters contend that the strong performance of these two companies justifies their stock price increases, and that sector concentration is not unique to South Korea. ◆ 'Samsung-Hynix' Approaches 50% of KOSPI Market Cap On May 7, the KOSPI closed at 7,490.05, up 105.49 points (1.43%). The surge was driven by semiconductors, with Samsung Electronics reaching a record high of 277,000 won and SK Hynix hitting 1,665,000 won. Although both stocks later retraced some gains, their market influence remains significant. Samsung Electronics and SK Hynix have market capitalizations of 1,587 trillion won and 1,179 trillion won, respectively, totaling 2,766 trillion won, or about 45.06% of the KOSPI. This is a slight decrease from 47% the previous day, but the KOSPI's direction is still heavily influenced by these two stocks. Their combined market cap has nearly doubled from about 462 trillion won (21.9% of KOSPI) a year ago, increasing to 1,184 trillion won (34.0%) by the end of last year, and maintaining 1,824 trillion won (38.2%) after the outbreak of conflict between the U.S., Israel, and Iran in early March. Despite the market boom, concerns about the concentration of 'Samsung-Hynix' persist. While the semiconductor sector is driving the rally, a slowdown could lead to increased volatility across the market. Eugene Investment & Securities noted that excluding semiconductors, the KOSPI index would be around 4,100, indicating that most sectors are lagging behind the index's rise. Only one-third of the market is reaching new highs this year. ◆ "Sector Concentration is Not Unique to South Korea" While the concentration in semiconductors is deepening, some analysts argue there is no cause for alarm. They point out that the stock prices of Samsung Electronics and SK Hynix are closely tied to their performance and are still considered undervalued. Domestic brokerages believe the memory sector's reevaluation is in its early stages, suggesting there is room for further growth. SK Securities raised its price targets for Samsung Electronics and SK Hynix to 500,000 won and 3 million won, respectively, while Mirae Asset Securities increased SK Hynix's target from 2 million won to 2.7 million won, a 35% hike. The phenomenon of large tech stocks leading the market is not exclusive to South Korea. In the U.S., the so-called 'Magnificent Seven' (M7) tech giants are driving market gains. According to StockAnalysis, the total market cap of companies in the Nasdaq 100 is approximately $38.38 trillion, with the M7—NVIDIA, Alphabet, Apple, Microsoft, Amazon, Meta, and Tesla—accounting for $23.19 trillion, or 60.4% of the total.* This article has been translated by AI. 2026-05-07 23:00:00

Government Seeks Farmer Input on Agricultural Cooperative Reforms The government, which is pushing for reforms in agricultural cooperatives, gathered feedback from farmers on May 7. Officials expressed intentions to address concerns about election fervor and rising costs.According to the Ministry of Agriculture, Food and Rural Affairs, Vice Minister Kim Jong-gu held a meeting with agricultural organization leaders at the aT Center in Seoul. He discussed the reform plans announced during government discussions on March 11 and April 1.Attendees included over 30 representatives from various agricultural organizations, such as Lee Seung-ho, president of the Korean Federation of Agricultural and Livestock Organizations, and Noh Man-ho, permanent representative of the Korean Comprehensive Agricultural Organizations Council.During the meeting, the ministry outlined key reform proposals, including the introduction of direct elections for members and the establishment of an Agricultural Cooperative Audit Committee. They also shared feedback gathered from previous meetings with cooperative leaders and regional briefings.Last month, the government held regional briefings in Daegu, Cheongju, and Suwon to collect opinions from cooperative leaders, members, agricultural organizations, and experts. Concerns raised included the potential for election fervor and politicization with direct elections, as well as worries about organizational expansion and financial burdens from the new audit committee.In response, Vice Minister Kim stated that they are considering alternatives such as strengthening the eligibility for candidates and introducing public elections, as well as simultaneous elections for the president and cooperative leaders. He also assured that they would explore cost-saving measures through organizational efficiency to address concerns about increased expenses from the independent audit committee.Kim emphasized, "This reform aims to improve the abnormal operational structure of agricultural cooperatives revealed in special audits and ultimately restore these organizations to serve their members and farmers. We will address the concerns raised in today's meeting during the legislative process."* This article has been translated by AI. 2026-05-07 22:14:45

Blue House Expresses Regret Over Failed Constitutional Amendment Vote The Blue House expressed regret on May 7 over the failure of the constitutional amendment to pass in the National Assembly, stating, "It is disappointing that the vote was invalidated due to lawmakers' refusal to participate." Spokesperson Kang Yoo-jung emphasized during a briefing that "the amendment is a promise to the people" and urged members of the People Power Party to fulfill their responsibilities as constitutional officials and participate in the upcoming session. Kang added, "We will consider ways to complete the amendment within the legal and institutional framework." Regarding the fire on the HMM cargo ship 'Namuh' docked in the Strait of Hormuz, Kang noted that analyzing the cause of the fire will require considerable time. He reiterated that, as mentioned by the National Security Director, it will take time to determine the cause, and thus, no specific information can be provided at this moment. Kang explained that the towing and subsequent processes are ongoing, which will prolong the analysis of the fire's cause. The 'Namuh' experienced an explosion and fire on May 4. The government is monitoring the towing of the vessel and the investigation into the incident while considering response measures.* This article has been translated by AI. 2026-05-07 22:13:38

Intensifying Competition in the Heat Pump Market: Strategies of Kyungdong and Kiturami Against Samsung and LG The government's policy to promote eco-friendly heat pumps is intensifying competition in the home heating market between major corporations and specialized boiler companies. As of May 7, the boiler industry reports that Samsung Electronics and LG Electronics are leveraging their advanced smart appliance ecosystems and high-efficiency technologies to penetrate the domestic heat pump market. In response, traditional boiler manufacturers like Kyungdong Navien and Kiturami are emphasizing their ultra-eco-friendly refrigerant technologies and exclusive installation infrastructures. Heat pumps are eco-friendly products that provide heating and hot water by utilizing heat from the air, operating similarly to refrigerators and air conditioners. They absorb heat from the air and convert it into high-temperature heat through a compressor, offering high energy efficiency without harmful emissions from fossil fuels. The government aims to install 3.5 million heat pumps by 2035 as part of its 2050 carbon neutrality goal. Given that the installation cost per household exceeds 10 million won, the domestic heat pump market is projected to grow to over 35 trillion won in the next decade. With major companies entering the heat pump market, competition is heating up. Last month, Samsung launched its Korean-style EHS heat pump boiler, which uses an air-to-water method to absorb heat from the outside air. It achieved a seasonal performance factor (SCOP) of 4.9 under floor heating conditions at 35°C, demonstrating energy efficiency by supplying nearly five times the heat energy compared to the electricity consumed. LG also introduced a new integrated heat pump system this month, designed with a structure that combines the outdoor unit and key components, allowing for easy installation without separate refrigerant piping. Traditional boiler manufacturers believe their eco-friendly technologies and extensive service networks will serve as barriers against the advances of large corporations. Refrigerant choice is also a key differentiator. Samsung and LG's heat pumps use the semi-eco-friendly refrigerant R32, which reduces carbon dioxide emissions compared to previous generations but has a global warming potential (GWP) of 675, falling short of the natural refrigerants that meet global environmental standards. In contrast, Kyungdong Navien is targeting the market with the next-generation natural refrigerant R290, which has a GWP of just 3, fully complying with global carbon regulations. Kiturami's Century, a subsidiary specializing in refrigeration and air conditioning, is expanding into the commercial market with R32-based inverter scroll heat pumps. They plan to distribute these systems to public facilities, agricultural sites, and commercial buildings. The decades-long expertise in specialized installation and service networks is also seen as a strong asset for traditional boiler companies. An industry insider noted, "Heat pump boilers require precise installation tailored to existing plumbing designs, pressure balance, and insulation conditions. Poor installation can lead to significant heating efficiency drops or safety issues like freezing and leaks in winter."* This article has been translated by AI. 2026-05-07 22:11:54

KT&G Reports 27.6% Increase in Q1 Operating Profit Driven by Overseas Sales KT&G achieved double-digit growth in both revenue and operating profit in the first quarter of this year, driven by record overseas sales. The company plans to enhance shareholder returns with a significant stock buyback and increased dividends in the second half of the year. During an investor relations meeting on May 7, KT&G reported that its consolidated operating profit for Q1 2026 rose 27.6% year-on-year to 364.5 billion won. Revenue increased by 14.3% to 1.7036 trillion won. The tobacco division's revenue reached 1.1559 trillion won, a 17% increase, while operating profit grew 27.2% to 321.6 billion won. The overseas tobacco business saw sales rise evenly across key regions, including Asia-Pacific and Eurasia, with Q1 revenue hitting 559.6 billion won, a 24.6% increase and a quarterly record. Cost reductions also contributed to a 56.1% surge in operating profit, marking a "triple growth" in revenue, operating profit, and sales volume. This trend is reflected in annual figures as well. Last year, KT&G's overseas tobacco sales reached 1.8775 trillion won, a 29.4% increase, with global sales surpassing domestic sales for the first time at 54.1%. KT&G CEO Bang Kyung-man highlighted this achievement at the shareholders' meeting, stating, "The overseas tobacco business has surpassed the Korean market, marking a historic milestone for KT&G as it transforms into a global leader." In the domestic market, KT&G maintained a 68.8% market share in the cigarette sector. The next-generation product (NGP) segment saw sales grow 51.5% year-on-year to 241 billion won, benefiting from both domestic and international growth and a rebound from last year's supply chain issues. KT&G plans to continue launching new products throughout the year to strengthen its market leadership. KT&G aims to leverage its competitive edge in the overseas tobacco business to expand its NGP products globally. The company is preparing to increase its direct entry into the heated tobacco market, utilizing its established distribution networks and expertise in key regions. Following the launch of its Kazakhstan factory, a new facility in Indonesia is set to begin operations in the first half of the year, accelerating its overseas production capabilities. In the health supplements division, KGC reported a 5.8% increase in revenue to 332.6 billion won, driven by successful promotions during the Lunar New Year and effective brand campaigns for products like Cheongnok and Everytime. Operating profit rose 53.3% to 27.9 billion won due to expanded high-margin sales channels and a focus on profitability. KT&G is also entering the global nutrition market, having established a dedicated center to promote ginseng raw materials for B2B transactions with global food and cosmetics companies, diversifying its international business. The company is enhancing shareholder returns, having completely retired 10,866,189 shares (9.5% of total issued shares, valued at approximately 1.8516 trillion won) on April 23. This move exceeded its stock buyback target for 2024-2027 ahead of schedule. In the second half of the year, KT&G plans to announce a new shareholder return policy focused on increasing dividends. KT&G Senior Vice President Lee Sang-hak stated, "Despite uncertainties in the external environment due to geopolitical issues in the Middle East, we expect stable revenue growth across all regions, including Asia-Pacific, Eurasia, and new markets, to continue for our overseas tobacco business." He added that the company would pursue ongoing shareholder return policies, including dividend increases, based on its performance growth from global expansion.* This article has been translated by AI. 2026-05-07 22:09:48

Test Drive: 2027 Hyundai Mighty Offers SUV-Like Comfort On May 7, the 2027 New Mighty, a mid-sized cargo truck, maneuvered through the parking lot at Incheon Port. The first noticeable feature inside the vehicle was its upgraded passenger car-like interior. Despite the rough terrain and sea breeze outside, the cabin was surprisingly quiet. The windshield glass and direct glazing method significantly reduced external noise. Handong-wook, a researcher from Hyundai's Mighty development team, explained, "Unlike the previous model, which used rubber to attach the windshield, this new Mighty integrates the glass with the body like a passenger vehicle, improving wind noise, sound insulation, and corrosion resistance." Sitting in the driver's seat, I felt a gentle jolt as the air seat absorbed shocks, reducing strain on my back. The interior featured a 12.3-inch digital cluster and a wide digital display, creating an SUV-level environment. Controls for driver assistance were conveniently placed within easy reach, reflecting thoughtful design for long-haul drivers. The driving performance has also improved. Hyundai introduced an advanced eco-roll feature and an electronic brake control system (EBS) to the Mighty, reducing unnecessary power engagement during long drives and enhancing fuel efficiency. On the same day, Hyundai held an Experience Day at Incheon Sang Sang Platform, unveiling the 2027 New Mighty, New Pavis, 2027 New Xcient, and the New Xcient hydrogen electric truck. The updated New Mighty and New Pavis feature a design inspired by Hyundai's 'H' logo and cube mesh details, presenting a more futuristic and robust appearance compared to previous commercial vehicles. The newly introduced mid-sized cargo truck Pavis focuses on practicality. While the Mighty caters to small businesses and everyday logistics, the Pavis targets logistics corporations and specialized cleaning vehicle markets. The transmission has been upgraded from a six-speed to a nine-speed automatic, optimizing power performance and fuel efficiency for various driving conditions. Hyundai has also prioritized enhancing safety features for both the Mighty and Pavis, expanding the front collision avoidance assist (FCA) to detect pedestrians and cyclists, addressing safety in urban delivery environments where foot and bike traffic is common. An automatic neutral switch feature has been added to improve efficiency during city driving. Hyundai's focus on improving overall competitiveness in driving performance, safety, convenience, and quality is evident in these updated models. The company aims to enhance the perception of trucks as partners in daily work rather than mere tools. Lee Cheol-min, head of Hyundai's domestic marketing division, stated, "The direction of change for the Mighty and Pavis can be summed up as 'stronger and more modern.' We have reinforced the fundamentals to ensure stability even on rough roads and heavy loads." 2026-05-07 22:07:31

BGF Retail Reports 68.6% Increase in Q1 Operating Profit Driven by Desserts and Convenience Foods BGF Retail, which operates the CU convenience store chain, reported a 68.6% increase in operating profit for the first quarter of this year, despite high inflation and weakened consumer sentiment. The company attributed this growth to successful product differentiation, improved store operations, and favorable weather conditions.BGF Retail announced that its consolidated operating profit reached 38.1 billion won, up from the same period last year. Revenue also rose by 5.2% to 2.12 trillion won.The company noted that both revenue and operating profit increased despite ongoing inflation and reduced consumer confidence due to the impact of the Middle East conflict. Favorable weather, including early cherry blossom blooms and rising average temperatures, contributed to increased outdoor activities and higher demand for convenience store services.Product competitiveness played a key role in the results. CU quickly launched dessert items reflecting current consumer trends, such as two-toned cakes, butter rice cakes, and fruit sandwiches. The 'get morning' series targeting breakfast demand and cost-effective convenience meals also attracted consumers during this inflationary period.The specialized store strategy enhanced growth rates for existing locations. CU expanded stores targeting specific consumer groups, such as ramen libraries, dessert parks, and running stations, which helped attract new customers. As a result, the growth rate for existing stores was 2.7% in the first quarter.Looking ahead to the summer peak season, BGF Retail plans to expand its differentiated products in key categories, including convenience meals, desserts, and alcoholic beverages. With rising temperatures expected to boost outdoor activities, the company aims to enhance product competitiveness to maintain sales momentum.Additionally, BGF Retail is expanding its international business. In November last year, it opened its first CU store in downtown Hawaii and plans to open 50 more locations over the next three years in tourist and commercial areas, including Waikiki Beach and Ala Moana.* This article has been translated by AI. 2026-05-07 22:02:27