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.