Samsung's China exit shows Korean brands under pressure

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Samsung Electronics' retreat from China's TV and home-appliance market is raising broader questions for South Korean industry, as Chinese companies gain ground in consumer electronics, autos and memory chips. Samsung officially announced on May 6 that it would withdraw from China's TV and home-appliance market, ending a 34-year presence that began after South Korea and China established diplomatic relations in 1992, according to Dealsite. Although Samsung has led the global TV market for 20 consecutive years, Chinese media reaction to the exit was muted, with the move widely seen as expected. Samsung's China website shows the company will stop selling TVs, monitors, air conditioners, refrigerators, washing machines, dryers, clothing care systems, audio products, projectors, vacuum cleaners and air purifiers in mainland China. Sales of smartphones, semiconductors and medical devices will continue. Market share collapse drives retreat Samsung appliance stores in China are clearing inventory, with some locations offering 5% to 10% discounts and replacing Samsung display areas with other brands. JD.com has also reportedly seen a sharp increase in Samsung TV transaction value, while industry sources said monitor discontinuation plans could be sent to distribution channels within two to three months. Rumors of Samsung's withdrawal from China's appliance business had circulated since early 2026. Some local distributors reportedly began reducing Samsung product orders in 2025. The retreat follows a sharp decline in Samsung's local market share. Samsung held only 3.62% of China's offline TV market as of April 5, ranking fifth, while its refrigerator and washing-machine shares stood at 0.41% and 0.38%, respectively, according to AVC data. Samsung's China TV share had been close to 20% in 2005, when it ranked first in the market. Runto Technology data showed that eight Chinese TV makers accounted for a combined 94.1% of China's 32.89 million TV shipments in 2025. Major foreign brands, including Samsung and Sony, shipped fewer than 1 million units combined. Chinese brands narrow the gap Chinese media and analysts have framed Samsung's exit as a sign that South Korean brands are losing their old premium position in China. Dong Min, secretary-general of the China Video Industry Association, said Samsung struggled partly because of insufficient localization in management and products, while fast-growing Chinese brands made it harder for the company to sustain a brand premium in similar product categories, according to Yonhap and Edaily. Dong also said younger Chinese consumers have shown weaker preference for foreign brands. On the supply-chain side, he said Samsung's quiet withdrawal from LCD panel manufacturing left its TV business more dependent on Chinese suppliers, weakening its competitive position. Chinese brands have also narrowed the gap in areas such as Mini LED and AI. While Samsung and other South Korean companies focused on OLED, Chinese manufacturers including TCL, Hisense and Xiaomi pushed into Mini LED and built strong price competitiveness. China's The Paper said domestic companies including Hisense, TCL, Xiaomi, Haier and Midea have expanded quickly on core technologies and pricing advantages. The commentary said some Chinese companies are now seen as having overtaken global brands in certain areas, though it also noted that Samsung's decision does not amount to a full withdrawal from China. Pressure moves into South Korea The pressure from Chinese brands is no longer limited to China. South Korea's robot vacuum market offers one example: Roborock has secured more than 50% share, while Dreame reportedly reached a double-digit share in 2025. The pressure is also spreading into autos. Money Today reported that Chinese automakers are expanding their influence in South Korea not only through direct market entry, but also through equity investments, technology partnerships and parts supply. The report said such strategies are making it harder to define where South Korean-branded vehicles end and Chinese technology begins. For South Korean companies, the concern is that the same pattern could extend further into semiconductors and components. Chinese memory makers, including ChangXin Memory Technologies, or CXMT, are already entering the DRAM market with government backing. DRAM and components come into focus Warnings about Chinese competition are not new in South Korea. The "China threat" has been discussed in South Korean industry for more than a decade, but repeated pledges to differentiate through premium products have not stopped Chinese companies from moving into higher-end segments. Competing with China on cost was unlikely to be a viable strategy, according to the report. Instead, South Korean companies may need to stay ahead in areas Chinese rivals have not yet reached, while making bolder R&D investments. The report also said the South Korean government needs to provide stronger support so companies can focus on the competition, as China continues to channel state funding and policy support toward domestic industries. Article edited by Jingyue Hsiao