Guarded optimism

Samsung sees mild economic recovery

By Kim Yoo-chul

GOYANG, Gyeonggi Province ― Leaders of Korea’s major technology companies have expressed guarded optimism about the business outlook for the coming year, saying that a recovery in the IT industry will help the global economy bounce back.

The upbeat outlook came at the Korea Electronics Show (KES) attended by leaders of major technology companies, including Yoon Boo-keun, the president of Samsung Electronics’ consumer electronics division.

KES, which was held at the KINTEX Convention Center in Goyang, is the Korean version of the International Consumer Electronics Show (ICES) of the United States.

Yoon expect a mild economic recovery next year and predicts that the global consumer electronics industry will rebound, helping Samsung continue its expansionary tracks in its key businesses. But he ruled out the possibility of a V-shaped recovery.

``The global consumer electronics industry, which is now on the road to recovery, would help revive the world economy because its growth could also help other industries to expand,’’ Yoon told The Korea Times.

``Samsung aims to sell 55 million units of flat-screen TVs next year from this year’s estimated 50 million units. Our rival firms such as those in Japan are experiencing a series of bad breaks. But ironically, this is a good chance for Samsung to take the lead over our rival companies in terms of market shares,’’ he added.

Although Samsung is no exception to its rival firms that experienced struggles in business expansion in recent years, Samsung TV chief Yoon believes that Samsung’s initiatives for manufacturing are going to pay off.

``Samsung expects the global TV industry to grow 5 percent and we aren’t negative about the outlook of that industry,’’ he said.

Han Sang-beom, CEO of LG Display, the world’s top supplier of flat-screens for use in smartphones to TVs also shows cautious optimism, expecting demand for flat screens to bottom out next year.

``I expect more demand next year. That’s why LG Display won’t cut investment, next year. Also, we will push our LCD-making project in southern China as planned. There wouldn’t be any delay and investment cut for our China project,’’ said the LG Display CEO Han.

LG is building a big LCD complex in Guangzhou that will cost at least 4 trillion won with the production timing set from 2014.

In a separate press conference, the LG Economic Research Institute (LGERI), the nation’s leading think-tank, expects the global economy will grow 3.3 percent next year from this year’s 3.2 percent.

SK hynix in licensing deal

In the meantime, Kwon Oh-chul, CEO of SK hynix, the world’s second-biggest chip supplier, said that it’s been in licensing talks with Rambus after the U.S.-based chip designer was sanctioned by a judge for destruction of documents in a U.S. chip-patent case with the South Korean memory chipmaker.

``This is not a lop-sided victory for us. But SK hynix is well-positioned for better bets for licensing deal with Rambus. We are in talks with the deal and I’m positive the talks will end up with good results,’’ said SK hynix CEO Kwon Oh-shul in a short meeting with local reporters.

This is the first time that the top brass of SK hynix made his direct comment about the Rambus-related issue after the latest ruling that favored the Icheon, Gyeonggi Province-based chipmaker.

Rambus officials in Korea weren’t available for comments despite multiple calls.

U.S. District Judge Ronald M. Whyte in San Jose, California, on Sept. 21 decided to strike from the record in the case any evidence supporting a Rambus royalty that is ``in excess of a reasonable and non-discriminatory’’ amount, according to court documents.

``SK hynix is getting better in terms of profit as we’ve been receiving more chip orders from our clients amid an explosive demand for Web-connected devices such as smartphones. We are positive about finishing this year with profit,’’ Kwon said.

SK hynix has begun reviewing next year’s management plan, according to the company CEO, though Kwon said; ``nothing has been decided yet.’’

``We may build more chip-producing lines, however, that’s tentative not fixed. The additional chip-building plan will be decided upon market situations,’’ said the CEO.

SK hynix suffered 260 billion won operating loss in the first quarter of this year and the company reported 22.8 billion won profit in the second quarter, though it’s seen that SK hynix to report some 60 billion won operating loss.