CEO Hwang Seong-woo at the general meeting of shareholders
Market cap evaporated by 5 trillion won in one year… 10 trillion won also faces collapse
Strengthening the cloud..Expanding the logistics platform
Samsung SDS CEO Hwang Seong-woo is giving a greeting at the 37th Annual General Meeting of Shareholders held at Samsung SDS Jamsil Campus on the 16th. Photo courtesy of Samsung SDS
[Seoul Economy]
“We havent been able to keep up with the big wave of cloud transformation. Its late, but I will do my best to seize the opportunity.”
Samsung SDS CEO Hwang Seong-woo communicated directly with shareholders at the 37th Annual General Meeting of Shareholders held at Jamsil Campus on the 16th. At this meeting, he presented a business vision to overcome the decline in stock prices and self-reflection on the business. In the future, it plans to focus its business capabilities on cloud and import/export logistics platforms.
CEO Hwang showed a graph of the stock price for one year after taking office, diagnosing that “the stock price has continued to decline since taking office.” “The market is demanding fundamental changes to the company.” Samsung SDS stock price, which reached 190,000 won in March last year, has recently fallen to 130,000 won. The market capitalization has also evaporated by about 5 trillion won in one year, putting it in a situation where even 10 trillion won is threatened. Regarding this, CEO Hwang said, “Unfortunately, I have no choice but to admit that I am late in preparing for the cloud transition. Its late, but were still trying to get it back, seeing that we have a chance.”
He emphasized that as part of this effort, Samsung SDS is making efforts to transform its cloud-native workforce along with a major reorganization last year. He also added that he is focusing on cloud management service providers through close collaboration with global cloud service providers.
He also presented a specific blueprint for the cloud. CEO Hwang said, “Last year, Samsung SDS had a meaningful year in which the proportion of sales in the external business sector in the IT business exceeded 20%. We will raise the proportion to 30%,” he said.
He continued, “I will return to the fundamental spirit of when I was founded in 1985 and prepare for the future cloud computing business,” he said. Regarding the logistics business, which is one of the growth engines of Samsung SDS, “Experts predict that third-party logistics that do not convert to digital will disappear by 2030.” We decided to go ahead with it,” he said. He added, “Our goal is to grow into a global major platform by 2025, centering on Cello Square, such as launching a business in China in the first half of this year.” Lastly, he emphasized, “Please remember that Samsung SDS is a cloud company and an import/export logistics platform company.
