Can ChatGPT, hiking with execs save Samsung?

People are seen inside Samsung Electronics' building in Seoul in this Oct. 8 photo. Yonhap

People are seen inside Samsung Electronics' building in Seoul in this Oct. 8 photo. Yonhap

Calls grow for ways to revive Korea's largest conglomerate
By Park Jae-hyuk

A unified labor union representing five Samsung Group affiliates, including Samsung Electronics, has proposed lifting a ban on the use of OpenAI's ChatGPT within their companies. This initiative is part of their efforts to help Korea's largest conglomerate navigate its most challenging crisis to date.

In a letter sent Thursday to Samsung Electronics Executive Chairman Lee Jae-yong and Vice Chairman Chung Hyun-ho, the Samsung Group United Union (SGUU) argued that the business group should utilize the world's best tools if it aims to be a leading global company.

“You can cope with security risks with ChatGPT Enterprise,” the SGUU said. “Amid the growing importance of shorter work hours and work-life balance, we should not waste our eight hours every day.”

However, skepticism remains regarding the union's request, as many question whether it is a viable solution for Samsung to overcome its current crisis. This doubt is fueled by the conglomerate's previous decision to restrict the use of ChatGPT following a series of leaks of confidential information, along with the growing trend among global enterprises to ban the use of the generative artificial intelligence (AI) services in their operations.

During an in-house survey last year, 65 percent of employees at Samsung Electronics also responded that security risks are inherent in the use of generative AI services.

Earlier this month, Samsung Electronics Vice Chairman Jun Young-hyun reportedly climbed a mountain with other executives to foster teamwork and discuss future strategies. This gathering followed his unexpected apology on Oct. 8 for the tech firm's third-quarter earnings guidance, which fell short of market expectations.

However, Samsung's shareholders and younger employees viewed his approach as outdated, questioning how hiking could effectively address the challenges facing the conglomerate.

Samsung Electronics Executive Chairman Lee Jae-yong, center, remains tight-lipped as he enters the Seoul Central District Court, Oct. 14. Yonhap

Samsung Electronics Executive Chairman Lee Jae-yong, center, remains tight-lipped as he enters the Seoul Central District Court, Oct. 14. Yonhap

Amid the various proposals for overcoming difficulties, the Samsung Electronics executive chairman has remained silent. On Oct. 11, Lee declined to answer reporters' questions about his plans for restructuring the company's businesses upon returning from his visit to the Philippines and Singapore.

He has also been facing calls to re-register as a Samsung Electronics director in order to pursue responsible management and direct the company's large-scale investments.

Lee Chan-hee, head of Samsung's compliance committee overseeing the business group's management, told reporters on Friday that the executive chairman must prioritize responsible management until a final ruling is issued regarding his alleged involvement in stock price rigging and accounting fraud during the 2015 merger of two affiliates.

In its recent annual report, the committee also recommended that the conglomerate reinstate its control tower for centralized oversight of its subsidiaries. This structure was previously dismantled following a high-profile corruption scandal involving the conglomerate and ousted former President Park Geun-hye.

“Samsung is undeniably the largest company in Korea, but it is in trouble due to the rapidly changing economic situation, emergence of labor unions, frustrated employees, difficulties in hiring talent and technology leaks,” the compliance committee head said.

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