Korean Media: Facing Competition from Chinese Enterprises, Samsung to Cut Its Home Appliance Division
On May 4, Korean media outlet KOREA WAVE (Japanese version) reported that Samsung Electronics, due to deteriorating profitability in its household appliances business such as televisions, is undergoing structural reform.
According to industry insiders, the company has already begun reviewing all unprofitable operations. With sluggish global demand for home appliances and sustained aggressive expansion by Chinese enterprises in the home appliance sector, Samsung Electronics' profit environment has worsened.
Chinese companies are no longer limited to low-end products; they have entered the high-end market—formerly a stronghold of Samsung—but now face increasingly fierce competition in this segment.
In response, Samsung is considering downsizing and even discontinuing its television and home appliance businesses in China. Although Samsung still holds advantages in quality and technological capabilities, local competitors like Haier and TCL possess stronger price competitiveness and are rapidly expanding their market share, leaving Samsung struggling. Meanwhile, competition is intensifying in high-value-added areas such as OLED and AI-enabled appliances, making it difficult for Samsung to gain market initiative.
Samsung's home appliance sales in China have plummeted from approximately 11.5 trillion KRW (about 1.265 trillion JPY) in 2015 to around 2.7 trillion KRW (about 297 billion JPY) in 2025.
The head of the television business unit has acknowledged the severe situation in China and stated that alternative strategies are currently under consideration.
The production system is also being reevaluated. In the home appliance industry, plans have been proposed to shut down certain product lines (such as dishwashers and microwave ovens), shifting production to outsourcing. The factory in Malaysia has entered closure procedures, with plans to consolidate capacity and personnel in Vietnam as the future core base.
In addition, the 24-year-old television factory located in Galanta, Slovakia—once serving as Samsung’s European base—will also close. Production will cease in May, and staff will be gradually reduced.
Original article: toutiao.com/article/1864236402413642/
Disclaimer: This article represents the personal views of the author