The head of Samsung Group linked his company to the South Korean economy and said a wake-up call was needed for both to avoid serious problems within four to six years, news reports said Saturday. Lee Kun-Hee, chairman of Samsung Group, also told journalists on Friday that falling profitability of the global electronics giant was "serious."
"I think it's serious," he said in reply to a question about falling profitability within key Samsung sectors including semiconductors, mobile handsets and home appliances, according to JoongAng daily and other papers.
"We have to wake up. In four to six years time, we may have a very chaotic situation," he said. "I am not only talking about Samsung but the country's economy as a whole," he said.
Lee, who usually keeps his distance from any issues but those related to Samsung, said in January that South Korea was caught between up-and-coming China and frontrunner Japan. He said China, with its phenomenal economic growth, was catching up fast while Japan continued to outpace South Korea.
Lee is travelling to Europe and China on business later this month. For full-year 2006, Samsung operating profit fell 14 percent to 6.93 trillion won (7.4 billion dollars) as sales climbed 2.6 percent to 59 trillion won.
Analysts said the company would have a better year in 2007. Lee Moon-Han of Tong Yang Investment Bank said its operating profit was expected to grow 20 percent this year as the semiconductor and LCD businesses are expected to perk up in the second half.
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