Transcript
Samsung History
Unlike other electronic companies Samsung origins were not involving electronics but other products.
In 1938 the Samsung's founder Byung-Chull Lee set up a trade export company in Korea, selling fish, vegetables, and fruit to China. Within a decade Samusng had flour mills and confectionary machines and became a co-operation in 1951. Humble beginnings.
From 1958 onwards Samsung began to expand into other industries such as financial, media, chemicals and ship building throughout the 1970's. In 1969, Samsung Electronics was established producing what Samsung is most famous for, Televisions, Mobile Phones (throughout 90's), Radio's, Computer components and other electronics devices.
1987 founder and chairman, Byung-Chull Lee passed away and Kun-Hee Lee took over as chairman. In the 1990's Samsung began to expand globally building factories in the US, Britain, Germany, Thailand, Mexico, Spain and China until 1997.
In 1997 nearly all Korean businesses shrunk in size and Samsung was no exception. They sold businesses to relieve debt and cut employees down lowering personnel by 50,000. But thanks to the electronic industry they managed to curb this and continue to grow.
The history of Samsung and mobile phones stretches back to over 10 years. In 1993 Samsung developed the 'lightest' mobile phone of its era. The SCH-800 and it was available on CDMA networks.
Then they developed smart phones and a phone combined mp3 player towards the end of the 20th century. To this date Samsung are dedicated to the 3G industry. Making video,camera phones at a speed to keep up with consumer demand. Samsung has made steady growth in the mobile industry and are currently second but competitor Nokia is ahead with more than 100% increase in shares.
Samsung
From Wikipedia, the free encyclopedia
For the publicly traded company, see Samsung Electronics.
Samsung Group
삼성그룹
三星그룹
Type Chaebol
Industry Conglomerate
Founded 1938
Founder(s) Lee Byung-chull
Headquarters Samsung Town, Suwon, South Korea
Area served Worldwide
Key people Lee Kun-hee
(Chairman of Samsung Electronics)
Products Apparel, chemicals, consumer electronics, electronic
components, medical equipment, precision
instruments, semiconductors,ships, telecommunications
equipment
Services Advertising, construction, entertainment, financial
services, hospitality, information and communications
technology services, medical services,retail
Revenue US$ 220.1 billion (2011)[1]
Net income US$ 21.2 billion (2011)[1]
Total assets US$ 343.7 billion (2011)[1]
Total equity US$ 141.1 billion (2011)[1]
Employees 344,000 (2011)[1]
Subsidiaries Samsung Electronics
Samsung Life Insurance
Samsung Heavy Industries
Samsung C&T
Samsung SDS
Samsung Techwin etc.
Website Samsung.com
This article
contains Koreantext. Without
proper rendering support, you
may see question marks,
boxes, or other
symbolsinstead
of Hangul or Hanja.
Samsung Group (Hangul: 삼성그룹; Hanja: 三星그룹; Korean pronunciation: [sam.sʌŋ ɡɯ'ɾup( ]) is a South
Korean multinational conglomerate companyheadquartered in Samsung Town, Seoul. It comprises numerous
subsidiaries and affiliated businesses, most of them united under the Samsung brand, and is the largest South
Korean chaebol.
Samsung was founded by Lee Byung-chull in 1938 as a trading company. Over the next three decades the
group diversified into areas including food processing, textiles, insurance, securities and retail. Samsung
entered the electronics industry in the late 1960s and the construction and shipbuilding industries in the mid-
1970s; these areas would drive its subsequent growth. Following Lee's death in 1987, Samsung was separated
into four business groups - Samsung Group, Shinsegae Group, CJ Group and Hansol Group. Since the 1990s
Samsung has increasingly globalised its activities, and electronics, particularly mobile phones and
semiconductors, has become its most important source of income.
Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest information
technology company measured by 2012 revenues),[2] Samsung Heavy Industries (the world's second-
largest shipbuilder measured by 2010 revenues),[3] and Samsung Engineering and Samsung C&T (respectively
the world's 35th- and 72nd-largest construction companies).[4] Other notable subsidiaries include Samsung Life
Insurance (the world's 14th-largest life insurance company),[5] Samsung Everland (operator of Everland Resort,
the oldest theme park in South Korea),[6] Samsung Techwin (a surveillance, aeronautics, optoelectronics,
automations and weapons technology company) and Cheil Worldwide (the world's 19th-largest advertising
agency measured by 2010 revenues).[7][8]
Samsung has a powerful influence on South Korea's economic development, politics, media and culture, and
has been a major driving force behind the "Miracle on the Han River".[9][10] Its affiliate companies produce
around a fifth of South Korea's total exports.[11]
Contents
[hide]
1 Name
2 History
o 2.1 1938 to 1970
o 2.2 1970 to 1990
o 2.3 1990 to 2000
o 2.4 2000 to 2012
o 2.5 Acquisitions and attempted acquisitions
3 Operations
o 3.1 Subsidiaries and affiliates
o 3.2 Joint ventures
o 3.3 Partially owned companies
4 Major customers
5 Logo
o 5.1 Audio logo
6 Samsung Medical Center
7 Sports Sponsorships
8 Price fixing
o 8.1 DRAM price cartel
o 8.2 CRT glass price cartel
9 See also
10 References
11 External links
[edit]Name
According to the founder of Samsung Group, the meaning of the Korean hanja word Samsung (三 星 ) is "tristar"
or "three stars". The word "three" represents something "big, numerous and powerful"; the "stars"
mean eternity.[12]
[edit]History
[edit]1938 to 1970
The headquarters of Samsung Sanghoein Daegu in the late 1930s
In 1938,[13] Lee Byung-chull (1910–1987) of a large landowning family in the Uiryeong county came to the
nearby Daegu city and founded Samsung Sanghoe (삼성상회, 三星商會), a small trading company with forty
employees located in Su-dong (now Ingyo-dong). It dealt in groceries produced in and around the city and
produced its own noodles. The company prospered and Lee moved its head office to Seoul in 1947. When
the Korean War broke out, however, he was forced to leave Seoul and started a sugar refinery
in Busan named Cheil Jedang. After the war, in 1954, Lee founded Cheil Mojik and built the plant in Chimsan-
dong, Daegu. It was the largest woollen mill ever in the country and the company took on the aspect of a major
company.
Samsung diversified into many areas and Lee sought to help establish Samsung as an industry leader in a
wide range of enterprises, moving into businesses such as insurance, securities, and retail. Lee placed great
importance on industrialization, and focused his economic development strategy on a handful of large domestic
conglomerates, protecting them from competition and assisting them financially.[14]
In 1948, Cho Hong-jai (the Hyosung group’s founder) jointly invested in a new company called Samsung
Mulsan Gongsa (삼성물산공사), or the Samsung Trading Corporation, with the Samsung Group founder Lee
Byung-chull. The trading firm grew to become the present-day Samsung C&T Corporation. But after some
years Cho and Lee separated due to differences in management between them. He wanted to get up to a 30%
group share. After settlement, Samsung Group was separated into Samsung Group
and Hyosung Group, Hankook Tire, and others.[15][16]
In the late 1960s, Samsung Group entered into the electronics industry. It formed several electronics-related
divisions, such as Samsung Electronics Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co.,
and Samsung Semiconductor & Telecommunications Co., and made the facility in Suwon. Its first product was
a black-and-white television set.
[edit]1970 to 1990
The SPC-1000, introduced in 1982, was Samsung's first personal computer (Korean market only) and uses an
audio cassette tape to load and save data - the floppy drivewas optional[17]
In 1980, Samsung acquired the Gumi-based Hanguk Jeonja Tongsin and entered the telecommunications
hardware industry. Its early products were switchboards. The facility were developed into the telephone and fax
manufacturing systems and became the centre of Samsung's mobile phone manufacturing. They have
produced over 800 million mobile phones to date.[18] The company grouped them together under Samsung
Electronics Co., Ltd. in the 1980s.
After the founder's death in 1987, Samsung Group was separated into four business groups - Samsung Group,
Shinsegae Group, CJ Group and Hansol Group.[19]Shinsegae (discount store, department store) was originally
part of Samsung Group, separated in the 1990s from the Samsung Group along with CJ Group
(Food/Chemicals/Entertainment/logistics) and the Hansol Group (Paper/Telecom). Today these separated
groups are independent and they are not part of or connected to the Samsung Group.[20] One Hansol Group
representative said, "Only people ignorant of the laws governing the business world could believe something so
absurd," adding, "When Hansol separated from the Samsung Group in 1991, it severed all payment guarantees
and share-holding ties with Samsung affiliates." One Hansol Group source asserted, "Hansol, Shinsegae, and
CJ have been under independent management since their respective separations from the Samsung Group."
One Shinsegae Department Store executive director said, "Shinsegae has no payment guarantees associated
with the Samsung Group."[20]
In the 1980s, Samsung Electronics began to invest heavily in research and development, investments that
were pivotal in pushing the company to the forefront of the global electronics industry. In 1982, it built a
television assembly plant in Portugal; in 1984, a plant in New York; in 1985, a plant in Tokyo; in 1987, a facility
inEngland; and another facility in Austin in 1996. As of 2012, Samsung has invested more than US$13 billion in
the Austin facility, which operates under the name Samsung Austin Semiconductor LLC. This makes the Austin
location the largest foreign investment in Texas and one of the largest single foreign investments in theUnited
States.[21][22]
[edit]1990 to 2000
Samsung started to rise as an international corporation in the 1990s. Samsung's construction branch was
awarded a contract to build one of the two Petronas Towers in Malaysia, Taipei 101 in Taiwan and theBurj
Khalifa in United Arab Emirates.[23] In 1993, Lee Kun-hee sold off ten of Samsung Group's subsidiaries,
downsized the company, and merged other operations to concentrate on three industries: electronics,
engineering, and chemicals. In 1996, the Samsung Group reacquired the Sungkyunkwan University foundation.
Samsung became the largest producer of memory chips in the world in 1992, and is the world's second-largest
chipmaker after Intel (see Worldwide Top 20 Semiconductor Market Share Ranking Year by Year).[24] In 1995, it
created its first liquid-crystal display screen. Ten years later, Samsung grew to be the world's largest
manufacturer of liquid-crystal display panels. Sony, which had not invested in large-size TFT-LCDs, contacted
Samsung to cooperate, and, in 2006, S-LCD was established as a joint venture between Samsung and Sony in
order to provide a stable supply of LCD panels for both manufacturers. S-LCD was owned by Samsung (50%
plus 1 share) and Sony (50% minus 1 share) and operates its factories and facilities in Tangjung, South Korea.
As on 26 December 2011 it was announced that Samsung had acquired the stake of Sony in this joint venture.
[25]
Compared to other major Korean companies, Samsung survived the 1997 Asian financial crisis relatively
unharmed. However, Samsung Motor was sold to Renault at a significant loss. As of 2010, Renault Samsung is
80.1 percent owned by Renault and 19.9 percent owned by Samsung. Additionally, Samsung manufactured a
range of aircraft from the 1980s to 1990s. The company was founded in 1999 as Korea Aerospace Industries
(KAI), the result of merger between then three domestic major aerospace divisions of Samsung Aerospace,
Daewoo Heavy Industries, and Hyundai Space and Aircraft Company. However, Samsung still
manufactures aircraft engines and gas turbines. [26]
[edit]2000 to 2012
The Samsung pavilion at Expo 2012
In 2001 Samsung Techwin became the sole supplier of a combustor module for the Rolls-Royce Trent
900 used by the Airbus A380, the world's largest passenger airliner.[27] Samsung Techwin is also a revenue-
sharing participant in the Boeing's 787 Dreamliner GEnx engine program.[28]
In 2010, Samsung announced a 10-year growth strategy centred around five businesses.[29] One of these
businesses was to be focused on biopharmaceuticals, to which the Company has committed ₩2.1 trillion.[30]
In December 2011, Samsung Electronics sold its hard disk drive (HDD) business to Seagate.[31]
In the first quarter of 2012, Samsung Electronics became the world's largest mobile phone maker by unit sales,
overtaking Nokia, which had been the market leader since 1998.[32][33] In the August 21st edition of the Austin
American-Statesman, Samsung confirmed plans to spend 3 to 4 billion dollars converting half of its Austin chip
manufacturing plant to a more profitable chip.[34] The conversion should start in early 2013 with production on
line by the end of 2013.
On August 24, 2012, 9 U.S jurors ruled that Samsung had to pay Apple Incorporated US$1.05 billion dollars in
damages for violating six of its patents on smartphonetechnology. The award was still less than the US$2.5
billion dollars requested by Apple. The decision also ruled that Apple didn't violate 5 Samsung patents that
were in the case[35] Samsung decried the decision saying that the move could harm innovation in the sector.
[36] It also followed a South Korean ruling that said both companies were guilty of infringing on each other's
intellectual property.[37] In the first trading after the ruling, Samsung shares on the Kospi index fell 7.7%, the
largest fall since October 24, 2008, to 1,177,000 Korean won.[38] Apple then sought to ban the sales of eight
Samsung phones (Galaxy S 4G, Galaxy S2 AT&T, Galaxy S2 Skyrocket, Galaxy S2 T-Mobile, Galaxy S2 Epic
4G, Galaxy S Showcase, Droid Charge and Galaxy Prevail) in the United States[39] which has been denied by
Judge Koh.[40]
On September 4, 2012, Samsung announced it plans to examine all of its Chinese suppliers for possible
violations of labor policies. The company said it will carry out audits of 250 Chinese companies that are its
exclusive suppliers to see if children under the age of 16 are being used in their factories.[41]
[edit]Acquisitions and attempted acquisitions
For a company of its size Samsung has made relatively few acquisitions.[42]
Rollei – Swiss watch battle
Samsung Techwin acquired a German camera-maker Rollei on 1995. Samsung (Rollei) used its optic
expertise on the crystals of a new line of 100% Swiss-made watches, designed by a team of
watchmakers at Nouvelle Piquerez S.A. in Bassequort, Switzerland. Rolex's decision to fight Rollei on
every front stemmed from the close resemblance between the two names and fears that its sales
would suffer as a consequence. In the face of such a threat, the Geneva firm decided to confront. This
was also a demonstration of the Swiss watch industry's determination to defend itself when an
established brand is threatened. Rolex sees this front-line battle as vital for the entire Swiss watch
industry. Rolex has succeeded in keeping Rollei out of the German market. On 11 March 1995 the
Cologne District court prohibited the advertising and sale of Rollei watches on German territory.[43][44]
Fokker, a Dutch aircraft maker
Samsung lost a chance to revive its failed bid to take over Dutch aircraft maker Fokker when other
airplane makers rejected its offer to form a consortium. The three proposed partners – Hyundai, Hanjin
and Daewoo – have notified the South Korean government that they will not join Samsung Aerospace
Industries Ltd.[45]
AST Research
Samsung bought AST (1994) and tried to break into North America, but the effort foundered. Samsung
was forced to close the California-based computer maker following mass defection of research staff
and a string of losses.[46]
FUBU clothing and apparel
In 1992, Daymond John had started the company with a hat collection that was made in his house in
the Queens area of New York City. To fund the company, John had to mortgage his house for
$100,000. With his friends, namely J. Alexander Martin, Carl Brown and Keith Perrin, half of his house
was turned into the first factory of FUBU, while the other half remained as the living quarters. Along
with the expansion of FUBU, Samsung invested in FUBU in 1995.[47]
Lehman Brothers Holdings’ Asian operations
Samsung Securities was one of a handful of brokerages looking into Lehman Brothers Holdings. But
Nomura Holdings has reportedly waved the biggest check to win its bid for Lehman Brothers Holdings’
Asian operations, beating out Samsung Securities, Standard Chartered, and Barclays.[48] Ironically,
after few months Samsung Securities Co., Ltd. and City of London-based N M Rothschild &
Sons (more commonly known simply as Rothschild) have agreed to form a strategic alliance in
investment banking business. Two parties will jointly work on cross border mergers and acquisition
deals.[49]
MEDISON Co.,Ltd. - Ultrasound Monitors
In December 2010, Samsung Electronics Co. bought MEDISON Co.,Ltd., a South Korean medical-
equipment company, the first step in a long-discussed plan to diversify from consumer electronics.[50]
Grandis Inc. - memory developer
In July 2011, Samsung announced that it had acquired spin-transfer torque random access memory
(MRAM) vendor Grandis Inc.[51] Grandis will become a part of Samsung's R&D operations and will
focus on development of next generation random-access memory.[52]
Samsung and Sony joint venture - LCD display
On December 26, 2011 the board of Samsung Electronics approved a plan to buy Sony's entire stake
in their 2004 joint liquid crystal display (LCD) venture for 1.08 trillion won ($938.97 million).[53]
mSpot, Inc - Music Service
On May 9, 2012, mSpot announced that it had been acquired by Samsung Electronics with the
intention of a cloud based music service.[54] The succeeding service was Samsung Music Hub.
NVELO, Inc. - Cache Software Developer
In December 2012, Samsung announced that it had acquired the privately held storage software
vendor NVELO, Inc., based in Santa Clara, California.[55] NVELO will become part of Samsung's R&D
operations, and will focus on software for intelligently managing and optimizing next-generation
Samsung SSD storage subsystems for consumer and enterprise computing platforms.
NeuroLogica - Portable CT scanner
In January 2013, Samsung announced that it has acquired medical imaging company NeuroLogica,
part of the multinational conglomerate’s plans to build a leading medical technology business. Terms
of the deal were not disclosed.[56]
[edit]Operations
Samsung Group headquarters atSamsung Town, Seoul
Samsung comprises around 80 companies.[57] It is highly
diversified, with activities in areas including construction,
electronics, financial services, shipbuilding and medical
services.[57]
In FY 2009, Samsung reported consolidated revenues of 220
trillion KRW ($172.5 billion). In FY 2010, Samsung reported
consolidated revenues of 280 trillion KRW ($258 billion), and
profits of 30 trillion KRW ($27.6 billion) (based upon a KRW-
USD exchange rate of 1,084.5 KRW per USD, the spot rate
as of 19 August 2011).[58]However, it should be noted that
these amounts do not include the revenues from all of
Samsung's subsidiaries based outside South Korea.[59]
[edit]Subsidiaries and affiliates
As of April 2011 the Samsung Group comprised 59 unlisted
companies and 19 listed companies, all of which had their
primary listing on the Korea Exchange stock-exchange.[60]
Principal subsidiary and affiliate companies of Samsung
include:
[edit]Ace Digitech
Ace Digitech is listed on the Korea Exchange stock-
exchange (number 036550).
[edit]Cheil Industries
Cheil Industries is listed on the Korea Exchange stock-
exchange (number 001300).
[edit]Cheil Worldwide
Cheil Worldwide is listed on the Korea Exchange stock-
exchange (number 030000).
[edit]Credu
Credu is listed on the Korea Exchange stock-exchange
(number 067280).
[edit]Imarket Korea
Imarket Korea is listed on the Korea Exchange stock-
exchange (number 122900).
[edit]Samsung Card
Samsung Card is listed on the Korea Exchange stock-
exchange (number 029780).
====Samsung C&T Corporation====/naymah3 Samsung
C&T Corporation is listed on the Korea Exchange stock-
exchange (000830).
[edit]Samsung Electro-Mechanics
Samsung Electro-Mechanics, established in 1973 as a
manufacturer of key electronic components, is
headquartered in Suwon, Gyeonggi-do, South Korea. It is
listed on the Korea Exchange stock-exchange (number
009150).[61]
[edit]Samsung Electronics
Main article: Samsung Electronics
Samsung Electronics Co., Ltd. is a multinational electronics
and information technology company headquartered
in Suwon and the flagship company of the Samsung Group.
[62] Its products include air conditioners, computers, digital
televisions, liquid crystal displays (including thin film
transistors (TFTs) and active-matrix organic light-emitting
diodes (AMOLEDs)), mobile phones, monitors, printers,
refrigerators, semiconductors and telecoms networking
equipment.[63] It is the world's largest mobile phone maker by
unit sales in the first quarter of 2012, with a global market
share of 25.4%.[64] It is also theworld's second-largest
semiconductor maker by 2011 revenues (after Intel).[65]
Samsung Electronics is listed on the Korea Exchange stock-
exchange (number 005930).
The headquarters of Samsung Engineering in Seoul
[edit]Samsung Engineering
Main article: Samsung Engineering
Samsung Engineering Co., Ltd. is a multinational
construction company headquartered in Seoul. It was
founded in January 1970. Its principal activity is the
construction of oil refining plants; upstream oil and gas
facilities; petrochemical plants and gas plants; steel making
plants; power generation plants; water treatment facilities;
and other infrastructure.[66] It achieved total revenues of
9,298.2 billion won (US$8.06 billion) in 2011.[67]
Samsung Engineering is listed on the Korea Exchange
stock-exchange (number 028050).
[edit]Samsung Fine Chemicals
Samsung Fine Chemicals is listed on the Korea Exchange
stock-exchange (number 004000).
[edit]Samsung Fire & Marine Insurance
Main article: Samsung Fire & Marine Insurance
Samsung Fire & Marine Insurance Co., Ltd. is a multinational
general insurance company headquartered in Seoul.[68] It
was founded in January 1952 as Korea Anbo Fire and
Marine Insurance Co., Ltd. and was renamed Samsung Fire
& Marine Insurance in December 1993.[69] Samsung Fire &
Marine Insurance offers services including accident
insurance, automobile insurance, casualty insurance, fire
insurance, liability insurance, marine insurance, personal
pensions and loans.[70] As of March 2011 it had operations in
10 countries and 6.5 million customers.[70] Samsung Fire &
Marine Insurance had a total premium income of US$11.7
billion in 2011 and total assets of US$28.81 billion at 31
March 2011.[70] It is the largest provider of general insurance
in South Korea.
Samsung Fire has been listed on the Korea Exchange stock-
exchange since 1975 (number 000810).[70]
[edit]Samsung Heavy Industries
Main article: Samsung Heavy Industries
Samsung Heavy Industries Co., Ltd. is a shipbuilding and
engineering company headquartered in Seoul. It was
founded in August 1974. Its principal products are bulk
carriers, container vessels, crude oil tankers, cruisers,
passenger ferries, material handling equipment steel and
bridge structures.[71] It achieved total revenues of 13,358.6
billion won in 2011 and is the world's second-largest
shipbuilder by revenues (after Hyundai Heavy Industries).[72]
[73]
Samsung Heavy Industries is listed on the Korea Exchange
stock-exchange (number 010140).
[edit]Samsung Life Insurance
Main article: Samsung Life Insurance
Samsung Life Insurance Co., Ltd. is a multinational life
insurance company headquartered in Seoul. It was founded
in March 1957 as Dongbang Life Insurance and became an
affiliate of the Samsung Group in July 1963.[74] Samsung
Life's principal activity is the provision of individual life
insurance and annuity products and services.[75] As of
December 2011 it had operations in seven countries, 8.08
million customers and 5,975 employees.[74] Samsung Life
had total sales of 22,717 billion won in 2011 and total assets
of 161,072 billion won at 31 December 2011.[74] It is the
largest provider of life insurance in South Korea.
Samsung Life Insurance is listed on the Korea Exchange
stock-exchange (number 032830).
[edit]Samsung Machine Tools
Samsung Machine Tools of America is a national distributor
of machines in the United States.[76]
[edit]Samsung SDI
Samsung SDI is listed on the Korea Exchange stock-
exchange (number 006400). On December 5, 2012 the
antitrust regulators of European Union fined Samsung SDI
and several other major companies for fixing prices of
TV cathode-ray tubes in two cartels lasting nearly a decade.
[77]
[edit]Samsung Securities
Samsung Securities is listed on the Korea Exchange stock-
exchange (number 016360).
[edit]Samsung Techwin
Samsung Techwin is listed on the Korea Exchange stock-
exchange (number 012450).
[edit]Shilla Hotels and Resorts
Shilla Hotels and Resorts is listed on the Korea Exchange
stock-exchange (number 008770).
[edit]SI Corporation
SI Corporation is listed on the Korea Exchange stock-
exchange (number 012750).
[edit]Joint ventures
[edit]Current
[edit]aT Grain
State-run Korea Agro-Fisheries Trade Corp. set up the
venture, aT Grain Co., in Chicago, with three other South
Korean companies, Korea Agro-Fisheries owns 55 percent
of aT Grain, while Samsung C&T
Corp, Hanjin Transportation Co. and STX Corporation. each
hold 15 percent.[78]
[edit]Brooks Automation Asia
Brooks Automation Asia Co., Ltd. is a joint venture
between Brooks Automation (70%) and Samsung (30%)
which was established in 1999. The venture locally
manufactures and configure vacuum wafer handling
platforms and 300mm Front-Opening Unified Pod (FOUP)
load port modules, and designs, manufactures and
configures atmospheric loading systems for flat panel
displays.[79]
[edit]POSCO-Samsung Slovakia Steel Processing
Center
Company POSS - SLPC s.r.o. was founded in 2007 as a
subsidiary of Samsung C & T Corporation, Samsung C & T
Deutschland and the company POSCO.[80]
[edit]POSCO-Samsung Suzhou Steel Processing
Center
[80]
[edit]Samsung Air China Life Insurance
Samsung Air China Life Insurance Co., Ltd. is a 50:50 joint
venture between Samsung Life Insurance and China
National Aviation Corporation. It was established in Beijing in
July 2005.[81]
[edit]Samsung Bioepis
Samsung Bioepis is a joint venture between Samsung
Biologics (85%) and the United States-based Biogen
Idec (15%).[82]
[edit]Samsung Biologics
Samsung Electronics Co. and Samsung Everland Inc. will
each own a 40 percent stake in the venture, with Samsung
C&T Corp. and Durham, North Carolina-
based Quintiles each holding 10 percent. It will contract-
make medicines made from living cells, and Samsung Group
plans to expand into producing copies of biologics
including Rituxan, the leukemia and lymphoma treatment
sold by Roche Holding AGand Biogen Idec Inc.[83]
[edit]Samsung BP Chemicals
Samsung BP Chemicals Co., Ltd is a 50:50 joint venture
between Samsung and the United Kingdom-based BP,
which was established in 1989 to produce and supply high-
value-added chemical products.
[edit]Samsung Corning Precision Glass
Samsung Corning Precision Glass is a joint venture between
Samsung and Corning, which was established in 1973 to
manufacture and market cathode ray tube glass for black
and white televisions. The company’s first LCD
glass substrate manufacturing facility opened in Gumi, Korea
in 1996.
[edit]Samsung Sumitomo LED Materials
Samsung Sumitomo LED Materials is a Korea-based joint
venture between Samsung LED Co., Ltd., an LED maker
based in Suwon, Korea-based and the Japan-
based Sumitomo Chemical. The JV will carry out research
and development, manufacturing, and sales of sapphire
substrates for LEDs.[84]
[edit]Samsung Thales
Samsung Thales Co., Ltd. (until 2001 known as Samsung
Thomson-CSF Co., Ltd.) is a joint venture between Samsung
Techwin and the France-based aerospace and defence
company Thales. It was established in 1978 and is based in
Seoul.[85]
[edit]Samsung Total
Samsung Total is a 50:50 joint venture between Samsung
and the France-based oil group Total S.A. (more specifically
Samsung General Chemicals and Total Petrochemicals).
[edit]SB LiMotive
SB LiMotive is a 50:50 joint company of Robert Bosch
GmbH(commonly known as Bosch) and Samsung SDI
founded in June 2008. The joint venture develops and
manufactures lithium-ion batteries for use in hybrid-, plug-
in hybrid vehicles and electric vehicles.
[edit]SD Flex
SD Flex Co., Ltd. was founded on October 2004 as a joint
venture corporation by Samsung and DuPont, one of the
world's largest chemical company.[86]
[edit]Sermatech Korea
Sermatech owns 51% of its stock, while Samsung owns the
remaining 49%. The U.S. firm Sermatech International, for a
business focusing on highly specialized aircraft construction
processes such as special welding and brazing.[87]
[edit]Siam Samsung Life Insurance
Samsung Life Insurance, holds a 37% stake while Saha
Group also has a 37.5% stake in the joint venture, with the
remaining 25% owned by Thanachart Bank.[88]
[edit]Siltronic Samsung Wafer
Siltronic Samsung Wafer Pte. Ltd, the joint venture by
Samsung and wholly owned Wacker Chemie subsidiary
Siltronic, was officially opened in Singapore in June 2008.[89]
[edit]SMP
SMP Ltd. is a joint venture between Samsung Fine
Chemicals and MEMC. MEMC Electronic Materials Inc. and
an affiliate of Korean conglomerate Samsung are forming a
joint venture to build a polysiliconplant.
[edit]Steco
Steco Co., Ltd. is established as the joint - venture company
with Samsung Electronics Co., Ltd and Japan TORAY in
1995.[90]
[edit]Stemco
Stemco is a joint venture between Samsung Electro-
Mechanics and the Japan-based Toray Industries which was
established in 1995.[91]
[edit]Toshiba Samsung Storage Technology
Toshiba Samsung Storage Technology Corporation (TSST)
is joint venture between Samsung Electronics
and Toshiba of Japan which specialises in optical disc drive
manufacturing. TSST was formed in 2004, and Toshiba
owns 51% of its stock, with Samsung owns the remaining
49%.
[edit]Defunct
[edit]Alpha Processor
In 1998, Samsung created a U.S. joint venture with Compaq
—called Alpha Processor Inc. (API)--to help it enter the high-
end processor market. The venture was also aimed at
expanding Samsung's non-memory chip business by
fabricating Alpha processors. At the time, Samsung and
Compaq invested $500 million in Alpha Processor.[92]
[edit]GE-Samsung Lighting
GE Samsung Lighting was a joint venture between Samsung
and the GE Lighting subsidiary of General Electric. The
venture was established in 1998 and was broken up
2009. [93]
[edit]Global Steel Exchange
Global Steel Exchange was a joint venture formed in 2000
between Samsung, the United States-based Cargill, the
Switzerland-based Duferco Group, and the Luxembourg-
based Tradearbed (now part of theArcelorMittal), to handle
their online buying and selling of steel.[94]
[edit]S-LCD
S-LCD Corporation was a joint venture between Samsung
Electronics (50% plus one share) and the Japan-based Sony
Corporation (50% minus one share) which was established
in April 2004. On December 26, 2011, Samsung Electronics
announced that it would acquire all of Sony's shares in the
venture.
[edit]Partially owned companies
[edit]Atlantico Sul
Samsung Heavy Industries currently owns 10 percent of the
Brazilian shipbuilder Atlantico Sul, which operates the largest
shipyard in South America. Joao Candido, the largest ship
built to date in Brazil, was built by Atlantico Sul with
technology supplied by Samsung Heavy Industries.[95]
[edit]DGB Financial Group
Samsung Life Insurance currently holds a 7.4% stake in the
South Korean banking company DGB Financial Group,
making it the largest shareholder.[96]
[edit]Doosan Engine
Samsung Heavy Industries currently holds a 14.1 percent
stake in Doosan Engine, making it the second-biggest
shareholder.[97]
[edit]Korea Aerospace Industries
Samsung Techwin currently holds a 10 percent stake
in Korea Aerospace Industries (KAI). Other major
shareholders include the state-owned Korea Finance
Corporation (26.75 percent), Hyundai Motor (10 percent)
and Doosan (10 percent).[98]
[edit]MEMC KOREA
MEMC's joint venture with Samsung Electronics Company,
Ltd. In 1990, MEMC entered into a joint venture agreement
to construct a silicon plant in Korea.[99]
[edit]Rambus Incorporated
Samsung currently owns 4.19 percent of Rambus
Incorporated.[100]
[edit]Renault Samsung Motors
Samsung currently owns 19.9 percent of the automobile
manufacturer Renault Samsung Motors.
[edit]Seagate Technology
Samsung currently owns 9.6 percent of Seagate
Technology, making it the second-largest shareholder.
Under a shareholder agreement, Samsung has the right to
nominate an executive to Seagate’s Board of Directors.[101]
[edit]SungJin Geotec
Samsung Engineering holds a 10 percent stake in Sungjin
Geotec, an offshore oil drilling company that is a subsidiary
of POSCO.[102]
[edit]Taylor Energy
Taylor Energy is an independent American oil company that
drills in the Gulf of Mexico based in New Orleans, Louisiana.
[103] Samsung Oil & Gas USA Corp., subsidiaries of
Samsung, currently owns 20% of Taylor Energy.
[edit]Major customers
The world's largest oil and gas project, Sakhalin II- Lunskoye
platform under construction. The topside facilities of the LUN-A
(Lunskoye) and PA-B (Piltun Astokhskoye) platforms are being built
at the Samsung Heavy Industry shipyard in South Korea.[104]
Major customers of Samsung include:
Royal Dutch Shell
Samsung Heavy Industries will be the sole provider of liquefied natural gas (LNG) storage facilities
worth up to US$50 billion to Royal Dutch Shell for the next 15 years.[105][106]
Shell has unveiled plans to build the world's first floating liquefied natural gas (FLNG) platform. At
Samsung Heavy Industries' shipyard on Geoje Island in South Korea, work is about to start[when?] on a
"ship" that, when finished and fully loaded, will weigh 600,000 tonnes – the world's biggest "ship". That
is six times as much as the biggest US aircraft carrier.[107]
United Arab Emirates government
A consortium of South Korean firms - including Samsung, Korea Electric Power Corp and Hyundai -
has won a deal worth 40 billion dollars to build nuclear power plants in the United Arab Emirates.[108]
Ontario government
The government of the Canadian province of Ontario signed off one of the world's largest renewable
energy projects, signing a $6.6bn deal that will result in2,500 MW of new wind and solar
energy capacity being built. Under the agreement a consortium – led by Samsung and the Korea
Electric Power Corporation – will manage the development of 2,000 MW-worth of new wind
farms and 500 MW of solar capacity, while also building a manufacturing supply chain in the province.
[109]
[edit]Logo
The Samsung Byeolpyo noodles logo,
used from late 1938 until replaced in
1958.
The Samsung Group logo, used from late
1969 until replaced in 1979
The Samsung Group logo (“three stars”),
used from late 1980 until replaced in
1992
The Samsung Electronics logo, used from
late 1980 until replaced in 1992
Samsung's current logo, in use since
1993.[110]
The current Samsung logo design is
intended to emphasize flexibility and
simplicity while conveying a dynamic and
innovative image through the ellipse, the
symbol of the universe and the world
stage. The openings on both ends of the
ellipse where the letters "S" and "G" are
located are intended to illustrate the
company's open-mindedness and the
desire to communicate with the world. The
English rendering is a visual expression of
its core corporate vision, excellence in
customer service through technology.
The basic color in the logo is blue, the
color that the company has had used in its
logos for years. The blue color symbolizes
stability and reliability, which are precisely
what the company wishes to accomplish
with its customers. It also stands for social
responsibility as a corporate citizen, a
company official explained.[111]
[edit]Audio logo
Samsung has an audio logo, which
consists of the notes E♭, A♭, D♭, E♭. The
audio logo was produced
by Musikvergnuegen and written by Walter
Werzowa.[112][113]
[edit]Samsung Medical Center
Samsung donates around US$100 million
per annum to the Samsung Medical
Center, a non-profit healthcare provider
founded by the group in 1994.
[114] Samsung Medical Center incorporates
Samsung Seoul Hospital, Kangbook
Samsung Hospital, Samsung Changwon
Hospital, Samsung Cancer Center and
Samsung Life Sciences Research Center.
Samsung Cancer Center, located in
Seoul, is the largest cancer center in Asia.
[115] Samsung Medical Center and the
multinational pharmaceuticals
company Pfizer have agreed to
collaborate on research to identify the
genomic mechanisms responsible for
clinical outcomes in hepatocellular
carcinoma.[116]
[edit]Sports Sponsorships
For more details on Samsung's sports
sponsorships, see Samsung Sports.
Samsung
sponsors Bundesliga club Bayern Munich.
[117] Samsung are the current sponsors of
the English Premier League football
club Chelsea Football Club. They also
sponsor English Football League
Oneclubs Swindon Town and Leyton
Orient.[118]
Samsung, which started as a domestic
sponsor of the Olympics in Seoul 1988,
has been a worldwide Olympic partner
since the 1998 Winter Olympics.[119]
Samsung operating many sports clubs,
football club Suwon Samsung Bluewings,
baseball club Samsung Lions, basketball
club Seoul Samsung Thunders, volleyball
club Daejeon Samsung Fire Bluefangsand
etc.
Samsung also sponsors a
former Starcraft Brood War and
current Starcraft II Professional Gaming
Team named Samsung Khan. Samsung
has sponsored the team since 2000.
[edit]Price fixing
[edit]DRAM price cartel
Samsung was fined EUR 145,727,000 for
being part of a price cartel of ten
companies for DRAMs which lasted from 1
July 1998 to 15 June 2002. The company
received, like most of the other members
of the cartel, a 10-% reduction for
acknowledging the facts to investigators.
Samsung had to pay 90% of their share of
the settlement, but Micron avoided
payment as a result of having initially
revealed the case to investigators.[120]
[edit]CRT glass price cartel
Samsung Corning Precision Materials
participated in a price cartel of four
companies for CRT glass which lasted
from 23 February 1999 to 27 December
2004. Samsung Corning Precision
Materials received full immunity and was
therefore not fined as it revealed the
existence of the cartel to the European
Commission.[121]
[edit]See also
Economy of South Korea
History
Miracle on the Han River
1997 financial crisis
Companies
List of companies
Chaebol
Samsung (Chaebol)
Hyundai (Chaebol)
LG (Chaebol)
SK (Chaebol)
Industry
Currency
Communications
Tourism
Transportation
Real estate
Financial services
Nuclear power
Rankings
Lee Byung-chulFrom Wikipedia, the free encyclopedia
This is a Korean name; the family name is Lee.
Lee Byung-chul
Hangul 이병철
Hanja 李秉喆
Revised Romanization I Byeong-cheol
McCune–Reischauer Yi Pyŏngch'ŏl
Lee Byung-chull (February 12, 1910 in Uiryeong, Gyeongsangnam-do – November 19, 1987 in Seoul) was
the founder of the Samsung Group and one of South Korea's most successful businessmen. With the breakup
of the Hyundai chaebol, Samsung is now South Korea's largest business group[1]
[edit]Life
He was the son of a wealthy landowning family (a branch of the Gyeongju Lee clan). He attended college
at Waseda University in Tokyo, but he did not complete his degree. Upon the early death of his father, he used
his inheritance to open a rice mill in his home town of Kyungnam. That endeavor was not especially successful
so he established a trucking business in Daegu on March 1, 1938, which he named Samsung Trading Co, the
forerunner to Samsung.[2] Samsung means "Three Stars" which explains the initial corporate logos.
Despite problems caused by Japan's rule over Korea, by 1945 Samsung was transporting goods throughout
Korea and to other countries. The company was based in Seoul by 1947. It was one of the ten largest "trading
companies" when the Korean War started in 1950.[3] With the conquest of Seoul by the North Korean army, Lee
was forced to relocate his business to Pusan. The massive influx of U.S. troops and equipment into Pusan over
the next year and a half of the war proved to be highly beneficial to Lee's trucking company.[3]
In 1953 he founded Cheil Sugar (currently CJ CheilJedang) which became very successful and profitable.
Using the income from Cheil Sugar, he founded numerous other companies which sold products in a wide
variety of markets: textiles (Cheil Wool Textile Co.), cars, insurance, department stores (Shinsegae), and
consumer electronics.
In 1961 when General Park seized power, Lee was in Japan and for some time he did not return to South
Korea. Eventually a deal was struck and Lee returned but Samsung had to give up control over the banks it
acquired and follow economic directives from Park's government.[3]
Later in life he served as chairman of the Federation of Korean Industries and was known as the richest man in
Korea.[1]
After his death, his estate (Ho-Am) was opened to the public for tours. His collection of Korean art is
considered one of the largest and finest private collections in the country and it features a number of art objects
that have been designated "National Treasures" by the Korean government.[4] Ho-Am is located a short
distance from the Everland park, South Korea's most popular amusement park (Everland is also owned by the
Samsung Group).
The Ho-Am Prize was founded in 1991, named after Lee's Art-name.
(10) Lee Byung-chull: founder of Samsung Group
By Andrei Lankov
The history of South Korea after 1945 was of tremendous and almost unprecedented economic
success. The country, which as recently as 1960 was universally seen as a basket case, a nation
without any economic prospects, was transformed into one of the worldmajor economies within the
lifespan of just one generation.
This impressive transformation was led by large business conglomerates known as chaebol. The
South Korean economy has been dominated by these vast enterprises, producing everything from
supertankers and passenger cars to petrochemicals. The majority of these conglomerates are
essentially grossly overgrown family businesses. Each chaebol was (and most still are) owned and
managed by a particular extended family.
There are black myths that surround the chaebol as well. According to the left in South Korea, the
chaebol are an embodiment of the evil capitalist forces. Their rise was possible through collusion
with corrupt politicians and greedy, ruthless profiteers. According to this myth, the corporations were
established by former pro-Japanese collaborators and grew only because of the preferential
treatment granted to them by the South’s military dictators.
So were the chaebol agents of economic breakthrough whose efforts brought affluence, education
and health to millions of Koreans? Or were they the incarnation of corruption and back room
dealing? As is usually the case, both myths contain a kernel of truth, but are wrong on some
important counts as well.
Nowadays the best known and arguably most powerful group is Samsung. And it seems that its
history is the best illustration of the history of Korean business, with its dirty deals and brilliant
breakthroughs.
It is often stated by left-wing intellectuals in Korea that the nation’s chaebol were once founded by
pro-Japanese collaborators. It is partially true but there is one important caveat — most present-day
chaebol were very humble businesses before 1945. Their founders had cozy relations with colonial
administrators (otherwise they wouldn’t be allowed to run anything more than a market stall), but
none of them were big time collaborators in that era. Those Korean businessmen who were most
notorious for their collaboration did not fare well after 1945.
Samsung was typical in this regard. Its founder, Lee Byung-chull, was born into a landlords’ family.
He would briefly study at Waseda University in Japan but didn’t graduate and came back home
where he was involved with a number of family business ventures.
In 1938, then exactly 30 years old, Lee established a small trading company in his native city of
Daegu. It specialized in imports and exports, and eventually began to produce alcoholic beverages
and foodstuff. For investment he used 30,000 won which was given to him by his family. At the time
it was equal to 2,000 average monthly salaries, so it roughly had the purchasing power of about $5
million in today’s money. The company was called Samsung or “three stars.” Indeed the Samsung
logo included the depiction of three stars until 1993 when the company decided to go international
big time and got rid of its old symbolic heritage.
Most of the chaebol were once established by the scions of landowning families. However, while the
inherited wealth did matter enormously, it did not guarantee anything. Many thousands of landlords’
sons joined the race, but merely a few hundred succeeded and only a few dozen struck it really big,
becoming chaebol owners. A lot of other qualities, both “good” and “bad” were necessary to develop
a small family business into a huge conglomerate.
With the collapse of the colonial regime, Lee made a brave and smart move: in 1947 he moved the
company’s headquarters to Seoul. For all practical purposes, Seoul had become Korea itself. The
nation’s capital was the only place where names and fortunes were made.
Both the company and its founder survived the turbulent years of the Korean War (not a foregone
conclusion since many an aspiring entrepreneur faced a North Korean firing squad in those times).
Lee knew how to succeed. He maintained cozy relations with the Rhee Syng-man government and
this helped him to secure the most profitable contracts, often related to foreign trade. Samsung also
produced sugar and textile. By the late 1950s, Lee was reputed to be the richest man in Korea, but
was also seen as a symbol of corruption.
Therefore we should not be too surprised that the downfall of Rhee in 1960 had a major negative
impact on Samsung’s standing. When in May 1961 the Korean army staged a military coup, then
lauded by the army propagandists as the “May 16th Revolution,” Lee was overseas, in the house of
his Japanese wife. He had a Korean wife too, but East Asian businessmen have never been known
for their phobia of polygamy (he maintained two households almost openly).
In Tokyo he learned that he was at the very top of the list of corrupt businessmen to be investigated
by the new regime. After some deliberation, he came back to Seoul to hold meetings with Major
General Park Chung-hee, head of the emerging military regime. They made a deal: all of his past
misdeeds would be forgiven so long as he would be willing to work toward the major goal of the new
government, that being the transformation of Korea into an industrial nation.
Park and his group were firm believers in economic efficiency and growth. They wanted to remake
Korea, then one of the poorest nations in all of Asia, into an industrial powerhouse. Back then, this
would have been seen as a pipe dream, since Korea had no resources, no capital and no expertise,
even though it did have an abundance of cheap and disciplined labor.
Korea’s government decided to remake the country into a huge factory which would import raw
materials and technology and then export the finished products overseas.
But Park believed that only big companies could succeed in the international market. So, he
handpicked a few dozen firms which were given major privileges and government support. Their
mission was to produce and export as much as possible.
The choice of the candidates was largely based on the personal preference of Park himself. At the
time, most outside observers were not approving of the Korean approach, insisting that it would
bring about much corruption while the then laissez-faire policies of Taiwan were more preferable.
Surprisingly, the critics were proved wrong. The potential for corruption was present, but it never
became a reality — at least on the scale that was feared and expected in the 1960s.
Needless to say, Korean capitalists did not become squeaky clean overnight — old habits lingered
(and still do). In 1966 Samsung found itself at the centre of a major scandal related to illegal imports.
Lee had to resign and spend a few years in self-imposed exile. Nonetheless on balance graft
remained under control.
From the 1960s and until the present day, Samsung has remained one of Korea’s largest
companies (usually it has been either the largest or second largest chaebol). Initially Samsung
Group concentrated on light industry, but as the economy grew and experience was amassed, the
company began to venture into new, far more challenging areas. Samsung Electronics was founded
in 1969 and in the 1970s the Samsung Group was selected by Park’s government to become the
leader of the emerging shipbuilding industry.
Nowadays, Samsung Heavy Industries, a subsidiary of the Samsung Group, is the world’s second
largest shipbuilder. Meanwhile, Samsung Electronics is the world’s biggest producer of LCD and
LED displays and computer chips.
Like most other founding fathers of the Korean industry, Lee demonstrated not only shrewdness, but
also great business acumen and unbelievable industriousness. During his lifetime, Samsung had the
reputation of a tightly managed company where the boss knew everything. He allegedly always sat
in on every hiring interview for every new employee from 1957 until 1986 — a total of some 100,000
interviews. He liked to cultivate an image of a paternalistic, caring employer but was also notoriously
nasty when it came to dealing with trade unions.
Lee died in 1987 leaving the company to his son Lee Kun-hee. Unlike his father who never
graduated from a university, Lee junior has degrees from prestigious schools in Korea, Japan and
the United States. Interestingly he graduated from Waseda University (which his father had
attended).
The large Lee family with its conflicts, quarrels and political influence, has kept Korean journalists
busy for a quarter of a century. They have succeeded in one regard: Samsung Group has not just
stayed at the top of Korea’s business hierarchy but managed to remain a family conglomerate even
in the most difficult times.
In the late 1990s, in the aftermath of the Asian Financial Crisis, many chaebol were dismantled or
the founders lost control. However this did not happen to Samsung. It is still run by the numerous
descendants of Lee Byung-chull and the centenary of his birth in 2010 being celebrated with much
pomp.
He was shrewd, hardworking, ruthless, smart and a brilliant manipulator of men, like most of his
peers, the founding fathers of the modern Korean economy.
Hail the Father of Business, Lee Byung-chul
Cover Stories
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Celebrated its centenary year of Hoam Lee Byung-chul’s birthday
Thursday, February 11th, 2010
B A N G J U N G - H Y U N
Lee Byung-chul (left), Samsung Group's founder, and Lee Kun-hee (second from the left),
former chairman of Samsung Group, are having a meeting with other board members in
1978.
Samsung Group, Korea's largest conglomerate, celebrated its 100th anniversary of the late Hoam Lee
Byung-chul's birthday at the Hoam Art Hall in Seoul from February 4, and carried on till February 10.
On this particular occasion, Lee's family, both former and incumbent Samsung executives, other
entrepreneurial leaders, politicians and bureaucrats attended and commemorated Lee's
100th birthday. Thus, all the attendees honored and paid respects to a man whose epic career
spanned Korea's conglomerate formation, from the decades of harsh authoritarian rule to its
transformation into a capitalistic economy. The event held an opening concert on February 4, in which
featured soprano Jo Su-mi, violist Kim Jee-yun, pianist Kim Young-ho, and the Bucheon Philharmonic
Orchestra. Meanwhile, Lee's exhibition took place throughout the event period, presenting Lee's
drawings, photographs, and sayings. On the last day of the event, an academic forum was held at
Shilla Hotel in Seoul, where many noted scholars filled the seats and delivered critical lectures. Among
them was Harvard Business School professor Tarun Khanna who gave a lecture on the growth of
Korean economy and the roles of entrepreneurs.
Who is Hoam Lee Byung-chul?
"Infinite technological innovations and progressive development of revolutionary technologies will
revive Korean economy and sustain economic prosperity, given that Korea lacks natural resources"
said Hoam Lee Byung-chul, founder of the Samsung Group and the father of Korean industry. Time
and again called 'the richest man in Korea,' he carved out Samsung Group from a small exports
company in 1938 into one of the largest Korean corporations. He stayed loyal to his own way of
thinking, in which robust business contributes to the nation's well-being and society. Thus, the nation
and its corporations are inseparable and are joined at the hip. Such ideology may well be stemmed
from his childhood background where he was born during the time of Japanese reign, and Korea was
dependent upon Japanese rule. In other words, among many factors, he realized how a country is
vulnerable against lack of vigorous ventures keeping the nation afloat and that the nation's stake was
poised on the edge of the chair without the existence of strong capitalism. Hence, it is not surprising
that he placed business in the service of his country. Lee's unflagging efforts to construct and embed
free enterprise in Korea to strengthen the nation earned him the reputation as a passionate champion
of economic prosperity and welfare. His efforts led to an unprecedented thaw in relations with the
government and cultivated capitalist ambition in the forthcoming future.
What nurtured Samsung to the top was in Hoam Lee's management skill
Lee Byung-chul held keen insight that cultivated a huge enterprise while avoiding a mess of pottage
and also possessed laudable leadership. He maintained his principles throughout his life that
a chairman of a company should consider three basic ideas while balancing these three: market,
people, and management. Also, he trusted his employees with all his heart that he let the person in
charge to take care of the work, without his direct supervision. The most interesting choice he made
for the company's security and well-being was selecting a psychologist as his consultant instead of a
business specialist. He recognized that management is not about playing with numbers, but managing
people; also, he understood that his employees are the most valuable assets to his company.
Lee Byung-chul being awarded on honorary doctorate at Boston College in 1982
Samsung History
Samsung Group gave birth to the notion of conglomerate. President Park Chung-hee staged an
anticorruption campaign in 1961. At the time, Lee was residing in Japan, refusing to go back to Korea
and confront the incumbent president, because he did not want to walk into the mouse trap where he
will be the main target as the richest man in Korea. Nonetheless, he and President Park made a deal
that ultimately became the pillar for Korea's conglomerate. The deal is as follows: Samsung is allowed
to keep the business running, but it has to be the carrier that implements governmental projects that
are in concurrent with President Park's plan. Although the deal draws a picture of Lee succumbing to
the government, such plan established the nature of Korean economic system, in which the
government and the business circle formed a common ground of interest that will benefit the two.
Thus, business profits the companies earn in Korea can well be interpreted as the government
partially subsidizing in one way or another. Samsung, however, in a long term, made progress day
after day and month after month that it now sees record profits and revenue.
It started as an exports company in 1938, and soon mushroomed and employed well over 400,000
employees and manufactures electronics, vehicles, chemicals, and textiles, ships, and runs hotels in
its subsidiaries. Now Samsung Electronics is known to be one of the top 10 brands in the world and it
operates in five major business areas: Telecommunication, Digital and Home Appliances, Digital
Media, LCD, and Semiconductors. Intimidated and revered by Japan, Taiwan and other countries
worldwide and not to mention domestically, Samsung Electronics with its hard-line expansion had
managed to crush market share of every company to become the top manufacturer of DRAM, home
appliances, flash memory, DVD-combo players, and several other devices and is now the forerunner in
plasma displays and next generation mobile phones. Recently, Samsung even became a dominant
player in notoriously selective Japan.
Samsung's development in chronological order
At the age of 26, he used his father's inherited money to start a rice mill in his home town, Kyungnam.
The venture went off to a rocky road so he moved to Daegu and began a trucking and real estate
business naming it Samsung, which means 'three stars'. To make it worse the business went bankrupt
due to credit squeeze that came from Japanese invasion of Manchuria. However, Lee got back on the
rails and started business where he added domestic and international trading to the former trucking
and real estate business that he had originally started from. And that is how Samsung Trading
Company developed in the midst of tense situation in the Korean peninsula. In 1953, he started the
foremost sugar refining company in Korea called 'Cheil Sugar'. Cheil meaning 'first' flourished
afterwards and made high profits. In 1952, he established additional subsidiary called Cheil Wool
Textile Company. Since then, Samsung Electronics emerged and had become the dominant group
even outshining worldwide leader Intel in investment for 2005 fiscal records. In 1971, Samsung
Electronics succeeded exporting domestic TVs to overseas for the first time and invented the world's
fourth VCR consecutively. From then on, Samsung produced color TVs for the first time in Korea in
1976, and was rated as number one black-and-white color TV manufacturer in the world. In this
fashion, Samsung went from success to success; riding on the crest of a wave and with no doubt Lee
planted the seeds of these successes. He also served as chairman of the Federation of Korean
Industries, a prominent business organization that is comprised of the country's leading business
executives.
Samsung Empire
There are four major groups that culminate Samsung Group and they are Hansol, CJ, and Shinsegae
group. Cheil Jedang, known as CJ, is a Korean conglomerate that diversified from its mother company,
Samsung. It is owned and operated by Lee Jae-hyun, the grandson of Lee. It also opened a chain of
multiplex movie theaters under the name of CGV. The Shinsegae Group is mainly known for its
department stores and is managed by Lee's youngest daughter, Lee Myung-hee. As of today, Samsung
Group has 64 subsidiaries and employs roughly 30,000 employees and combines for revenue of
KRW200 trillion (US$172.3 billion), occupying approximately one-fifth of Korea's gross domestic
product (GDP).
AN JOSE (California), Aug 25 — A US jury yesterday handed Apple Inc. a sweeping victory in its
legal war with Samsung, ruling that the Korean company had copied critical features of the hugely
popular iPhone and iPad and awarding the US company US$1.051 billion (RM3.258 billion) in
damages.
The verdict — which came much sooner than expected — could lead to an outright ban on sales of
key Samsung products and will likely solidify Apple's dominance of the exploding mobile computing
market.
A number of companies that sell smartphones based on Google's Android operating system may
now face further legal challenges from Apple, a company that is already among the largest and most
profitable in business history.
Shares in Apple, which just this week became the biggest company by market value in history,
climbed almost 2 per cent to a record high of US$675 in after-hours trade.
Brian Love, a Santa Clara law school professor, described it as a crushing victory for Apple: "This is
the best-case scenario Apple could have hoped for."
The jury deliberated for less than three days before delivering the verdict on seven Apple patent
claims and five Samsung patent claims — suggesting that the nine-person panel had little difficulty in
concluding that Samsung had copied the iPhone and the iPad.
Billions of dollars in future sales hang in the balance.
Apple's charges that Samsung copied its designs and features are widely viewed as an attack on
Google Inc and its Android software, which drives Samsung's devices and has become the most-
used mobile software.
Apple and Samsung, two companies that sell more than half the world's smartphones and tablets,
have locked legal horns in several countries this year.
Earlier on Friday, a South Korean court found that both companies shared blame, ordering Samsung
to stop selling 10 products including its Galaxy S II phone and banning Apple from selling four
different products, including its iPhone 4.
But the trial on Apple's home turf — the world's largest and most influential technology market — is
considered the most important.
The fight began last year when Apple sued Samsung in multiple countries, accusing the South
Korean company of slavishly copying the iPhone and iPad. Samsung countersued. Apple had
sought more than US$2.5 billion in damages from Samsung, which has disputed that figure.
The companies are rivals, but also have a US$5 billion-plus supply relationship. Apple is Samsung's
biggest customer for microprocessors and other parts central to Apple's devices.
A near clean sweep?
The US jury spent most of August in a packed federal courtroom in San Jose — just miles from
Apple's headquarters in Cupertino — listening to testimony, examining evidence and watching
lawyers from both sides joust about seven Apple patents, five Samsung patents, and damage
claims.
Jurors received 100 pages of legal instructions from US District Judge Lucy Koh on Aug. 21 prior to
hearing the closing arguments from attorneys.
Lawyers from both tech giants used their 25 hours each of trial time to present internal emails, draw
testimony from designers and experts, and put on product demonstrations and mockups to convince
the jury.
At times, their questions drew testimony that offered glimpses behind the corporate facade, such as
the margins on the iPhone and Samsung's sales figures in the United States.
From the beginning, Apple's tactic was to present what it thought was chronological evidence of
Samsung copying its phone.
Juxtaposing pictures of phones from both companies and internal Samsung emails that specifically
analysed the features of the iPhone, Apple's attorneys accused Samsung of taking shortcuts after
realizing it could not keep up.
Samsung's attorneys, on the other hand, maintained Apple had no sole right to geometric designs
such as rectangles with rounded corners. They called Apple's damage claim "ridiculous" and urged
the jury to consider that a verdict in favor of Apple could stifle competition and reduce choices for
consumers.
The California trial has produced its share of drama and heated moments. Lawyers routinely
bickered over legal matters in the jury's absence, filed rafts of paperwork to thwart each other's
courtroom strategy, and sometimes even resorted to public relations tactics to make their views
known. — Reuters
Well, at least one fact is right: Tim Cook is chief executive of Apple.
On to the debunking.
1) Samsung's fine ($1.049bn) isn't yet payable; the judge hasn't ruled. All we have is the jury's verdict. The judge's decision, which could include a tripling of the fine, is due on 20 September (or possibly 6 December now; it's unclear). Until then, Samsung only has to pay its lawyers. That should be less than $1bn.
2) If Samsung tried to pay the fine in five-cent coins, Apple could legitimately tell the trucks to turn around and head back to Samsung (if the trucks weren't imaginary in the first place). Here's the relevant phrase from the US Treasury web page:
Q: I thought that United States currency was legal tender for all debts. Some businesses or governmental agencies say that they will only accept checks, money orders or credit cards as payment, and others will only accept currency notes in denominations of $20 or smaller. Isn't this illegal?A: The pertinent portion of law that applies to your question is the Coinage Act of 1965, specifically Section 31 U.S.C. 5103, entitled "Legal tender," which states: "United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues."This statute means that all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise. For example, a bus line may prohibit payment of fares in pennies or dollar bills. In addition, movie theaters, convenience stores and gas stations may refuse to accept large denomination currency (usually notes above $20) as a matter of policy.
So basically it would be Apple's choice whether it accepted the payment. (In the UK, the rules are stricter: "legal tender" - meaning payment for a court-ordered debt - mean, says the Royal Mint, that 5ps are only legal tender for amounts up to £5, for example. It's only when you get to £1 that you can pay debts up to "any amount".)3) Some more fact-checkiing from Ken Tindell via Twitter: "A nickel weighs 5g. It would take 2,755 18-wheeler trucks (max legal tare 80,000 lbs) to carry the money."4) Consider how much a billion dollars in nickels would weigh: you need 20bn of them, and at 5g each that's 0.005 kg x 20,000,000,000 = 100,000,000 kg = 100,000 tonnes.
5) There probably aren't that many nickels in circulation anyway. The New York Times noted in 2006 that there were about 20bn nickels in circulation at the time; rising metal prices were encouraging people to melt them for the copper and zinc. Another dose of reason.6) The amount of copper involved (95% of each nickel) is truly humungous because a billion is a very big number. 100,000 tonnes of copper (let's assume that's what it is for now) would, at a density of 8,940 kg/cubic metre (that's 8.94 tonnes/cubic metre), occupy just over 11,185 cubic metres. As an Olympic swimming pool has a capacity of 2,500 cubic metres (aka "one olymp"), that would be the same as four and a half Olympic swimming pools filled entirely with copper. Imagine that if you can.
The story appears to have originated on "humour" site 9gag, which Mobile Entertainment describes succinctly as "a place normally reserved for z-list memes and screenshots of Facebook statuses." Yup, this one fits that.The story actually originated on El Deforma, described (by many) as "an Onion-like Mexican website" - that is, specialising in fake news. Here's the original; I'm grateful to Maria Figueroa, who first pointed this out to me.She also pointed out that the site has a "tip of the day", which on Wednesday had the advice: "Si vas a plagiar noticias, no uses un sitio de noticias falsas como fuente." Or In English: "If you're going to steal news, make sure not to use a fake news site as a source."
When Steve Jobs was alive, it was his job to plug the latest Apple product. Few can deny his
theatrics helped boost iPhone sales.
For Samsung Electronics, it is Shin Jong-kyun, mobile chief of the Korean electronics giant.
Last week, Shin unveiled the Galaxy S4 mobile phone in Radio City Music Hall, New York.
The S4 unveiling was Samsung’s decision to go after Apple in its home territory of the United States,
the biggest smartphone market in the world.
Shin did his job with a high level of confidence. He didn’t read from a prepared text, and spoke
openly to the audience, conveying his feelings to them.
''Samsung executives were shy about plugging products. But it is transitioning to a marketing-driven
company with top-rated products,’’ said an unnamed official by telephone. “It is trickling down
through the organization and Shin is at the forefront of this latest trend.”
The official said Shin understands about appealing presentations, adding that he usually spends
long periods of time preparing his speeches for key events.
“Shin is such an enthusiastic person. At first, he used to be tense ahead of presentations. Now he
has overcome this. His presentation skills have been acquired through endless practice and
lessons,” an executive told The Korea Times.
Samsung held a theatrical launch this time, a wholly new concept never used by the company
before.
Also it strategically picks venues in different countries holding events that highlight key features of its
products, compared to Apple’s announcements near its headquarters in California.
''Samsung has taken technology and innovation forward to help us get close to what matters in life,
to help us live a richer, simpler and more full life,’’ said Shin during the S4 launch event.
According to shin, the Galaxy S4 isn’t just a phone but the right communications tool that blurs
technology and humanity. He said Samsung is becoming an inspirational brand.
There had been doubt that Samsung’s communication skills with the international community lacked
clarity and failed to spur feelings as previous launch events were just focused on an announcement
about the device.
But Samsung isn’t the firm it used to be. As the world’s top handset supplier, its representatives'
presentation skills are getting much better. Shin took gradual steps to explain the key features of the
S4 and didn’t spend much time on the device’s hardware specifications.
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