South Korea’s Samsung may struggle to retain dominance

Significance

The case adds to Samsung’s growing legal and operational challenges, particularly in semiconductors and smartphones. In a bid to revive its chips sector, SEC on November 18 began equipping its new semiconductor research and development complex, NRD-K, and announced a KRW10tn (USD7.2bn) share buyback, its first in seven years, lifting shares nearly 6% after they hit four-year lows.

Impacts

• In smartphones, Samsung will face a growing challenge from cheaper but high-quality Chinese competitors.
• Samsung’s operations in the United States will likely be strained as Trump is expected to cancel Biden’s pledged subsidies.
• Nepotism and the controlling Lee family’s outstanding bank loans will continue to add to SEC’s existing hurdles.