Samsung Group, one of South Korea’s leading conglomerates, has shifted to an emergency mode, enforcing a six-day workweek for its executives across multiple divisions. This response comes amid significant business uncertainty due to the sharp depreciation of the Korean won, rising oil prices, and high borrowing costs. The change is driven by the need to address lower-than-expected results from some of Samsung’s key business units in 2023.
Samsung Electronics Co., the flagship division of the conglomerate, is implementing this new work schedule for its executives, including heads of production and sales units. The adjusted workweek will include either Saturday or Sunday, in addition to the standard five-day workweek. This policy aims to allow executives to review business strategies and respond promptly to the shifting business environment, exacerbated by ongoing geopolitical risks from the prolonged conflict between Russia and Ukraine, as well as escalating tensions in the Middle East.
“Given that the performance of our major divisions, including Samsung Electronics, fell short of expectations in 2023, we are introducing a six-day workweek for executives to evoke a sense of crisis and make every effort to overcome it,” a Samsung Group executive explained.
In response to these challenges, other Samsung divisions such as Samsung Display Co., Samsung Electro-Mechanics Co., and Samsung SDS Co. are also expected to adopt the six-day workweek. The move is part of a broader effort to adapt to changing market dynamics and rising geopolitical risks. Employees below the management level will continue to operate on a five-day schedule, as established by Samsung in 2003.
While this emergency shift addresses current business challenges, Samsung’s semiconductor business recorded an operating loss of 15 trillion won ($11 billion) in 2023. Despite this, the company signaled an upturn in the chip market, with its preliminary operating profit rising more than tenfold in the first quarter of 2024. However, further uncertainty looms due to a sharp decline in the Korean won and rising oil prices.
Source: KED Global