By Kim Yoo-chul
A well-known progressive economics professor has called for Samsung Group executives to improve its communication skills and management systems.
“In decision-making, Samsung is the fastest and smartest. It also has the greatest flexibility in Korea. But it is reluctant to listen to advice about any changes of its closed management systems,” said Kim Sang-jo, an economics professor at Hansung University, during the group’s executive meeting.
Kim was invited to be a guest lecturer to a weekly Wednesday meeting at the group’s headquarters in Seoul.
This is the first time Kim visited Samsung’s main office. The invitation is very rare given that Kim has called for chaebol reform and economic democratization. He now serves as the head of the Solidarity for Economic Reform.
During the lecture titled “Economic Democratization and Samsung,” the professor pointed out that the firm became too arrogant due to its stellar business performance, therefore making it view itself as an exception.
“Samsung should regard itself as a part of Korea. For better communication with society, Samsung should change its leadership style. If it wants to build trust from the public, then it should listen to views in open places,” Kim told 30 Samsung executives, including its corporate office head Choi Gee-sung.
The professor said, “Samsung Vice Chairman Lee Jay-yong, who is also an heir apparent of the nation’s most powerful industrial conglomerate, should come out to communicate with the outside and receive evaluation. His reputation can be made only when he listens to others.”
“In Korea, chaebol owners understand society with filtered information. That makes them get access to only one-sided views. Real leadership starts from better communication with the society,” he added.
“Reform of the chaebol system is the start for economic democratization initiatives being pushed by the government and I believe this is essential for Korea to go into a better society with balanced growth,” said the professor.
The company said that it is taking the professor’s advice.
“Samsung is paying more attention to listen to others’ views and the lecture is a good starting point toward the new path,” Samsung’s chief communications officer Rhee In-yong said.
Meanwhile, Samsung Electronics co-CEO Shin Jong-kyun said Samsung has already been manufacturing its Galaxy line of devices via contract manufacturers to respond to the rising demand for Samsung smartphones.
“We are producing Galaxies via contract manufacturers. But Galaxy S4 Mini is not included,” the CEO Shin told reporters in a separate meeting. Samsung aims to sell 510 million phones this year, up from last year’s 415 million phones, according to Samsung officials.
Samsung Electronics has been changing its budget phone-manufacturing lines in Vietnam to produce more smartphones.
Shin also said the company will be aggressive in promotional campaigns to narrow gaps between expectation by markets and reality in profits.
“The second quarter was very good. But the market had expected more. Samsung will try hard to meet market expectations,” Shin told reporters.