[Economy PICK] Samsung Electronics 'unusual apology' for unexpected report card

[Anchor]
It's time for Economic Pick, which kindly solves economic issues.

Reporter Hwang Bo Hye-kyung is here. Welcome.

Let's start with the first topic.

Samsung Electronics Apologizes for Unexpected Report Card

First of all, how did the third quarter performance come out?

[Reporter]
Samsung Electronics' operating profit for the third quarter of this year was tentatively estimated at KRW 9 trillion.

It is 274% higher than in the third quarter of last year, that is, nearly four times higher.

Sales were 79 trillion won, up more than 17% from last year, which is the highest performance on a quarterly basis.

Although the semiconductor industry is higher than last year when it was in recession, it is evaluated that it did not meet market expectations.

At one point, Samsung Electronics' third-quarter operating profit was forecast to reach KRW 13 trillion, but it was lowered to KRW 10 trillion due to reduced demand for smartphones and PCs.

received a lower report card than market expectations.

[Anchor]
I also wonder why this result came out.

[Reporter]
In fact, if you look at sales alone, it is a record, so it can be confusing for investors.

Samsung Electronics also released a separate explanatory material,

Memory Semiconductors increase inventory of mobile companies as demand for smartphones decreases,
In the case of
low-end general-purpose memory semiconductors, Chinese companies increased supply, which affected the decline in market share, it said.

It also added that one-time expenses such as employee incentives and the won-dollar exchange rate were also reflected in the performance.

In the case of HBM 3E, it said that commercialization to major customers was delayed, which means that Nvidia's quality verification test results were delayed and could not lead to sales.

[Anchor]
In the midst of this, Samsung Electronics issued an unusual apology?

[Reporter]
Samsung Electronics' Semiconductor Head and Vice Chairman Jeon Young-hyun issued an unusual apology.

Jeon said he was sorry for making the company worried about its future due to the performance that did not meet market expectations.

He then emphasized that all responsibility rests with management, and that management will take the lead in creating an opportunity for another leap forward.

[Anchor]
How Was Samsung Electronics Stock Today?

[Reporter]
Samsung Electronics shares were not shaken much today despite the earnings shock announced just before the opening.

As the transaction remained around 60,500 won, it guarded the 60,000 won range,

In the end, it closed at 60,300 won, down 1.15% from yesterday.

Analysts say concerns about deteriorating performance have been reflected in stock prices.