The Samsung Group is composed of numerous international affiliated businesses, most of them the Samsung brand including Samsung Electronics, the world's largest electronics company, Samsung Heavy Industries, the world's second largest shipbuilder and Samsung C&T, a major global construction company and Samsung Life Insurance, the largest insurance company in Korea.
Samsung has been the world's most popular consumer electronics brand since 2005 and is best known South Korean brand in the world. Samsung Group accounts for more than 20% of South Korea's total exports and is the leader in many domestic industries, such as the financial, chemical, retail and entertainment industries. The company's strong influence in South Korea is visible throughout the nation, which has been referred to as the
" Republic of Samsung".
Background:
Currently helmed by Lee Soo-bin, once the CEO of Samsung Life Insurance, it has been run by generations of one of the world's wealthiest families, formerly by chairman Lee Kun-Hee, the third son of the founder, Lee Byund-Chull.
Many major South Korean corporations such as CJ Corporation, Hansol Group, Shinsegae Group and Joong-And I Ibo daily newspaper were previously part of the Samsung Group. Thong they are still control led by ex-Chairman Lee Kun-hee's relatives, they are no longer officially Samsung affiliates. Some leading companies in South Korea, notably MP3 player manufacturer iriver and search engine portal Naver, were established by ex-Samsung employees. A large number of South Korean firms, particularly those in the electronics industry, are dependent on Samsung for the supply of vital components or raw materials such as semiconductor chips or LCD panels. This has led to continued allegations of price fixing and monopolistic practices. Samsung Group also owns the Sungkyunkwan University, a major private university in South Korea.
Samsung Group accounts for more than 20% of South Korea's total exports and in many domestic industries, Samsung Group is the sole monopoly dominating a single market, its revenue as large as some countries total GDP. In 2006, Samsung Group would have been the 35th largest economy in the world if ranked, larger that of Argentina. The company has a powerful influence on the country's economic development, politics, media and culture, being a major driving force behind the Miracle on the Han River; many businesses today use its international success as a role model.
History:
In 1938, Lee Byung-chull (1910-1987) of the large landowning family in the Uiryeong country came to the nearby Daegu city and founded Samsung Sanghoe, a small trading company with forty employees located in Su-dong (now Ingyo-dong). Id dealt in green-grocery and dried fish produced in and around the city, and the noodles, Byeolpyo Guksu produced itself. 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 as a name of Cheil Jedang. It was the first South Korean sugar manufacturing facility. After the war, in 1954, Lee founded Cheil Mojik and built the plant in Chimsan-dong, Daegu. It was the largest woolen mill ever in the country and the company took on an aspect of a major company.
Samsung's diversified into many areas and Lee sought to establish Samsung as an industry leader in a wide range of enterprises. The company started moving into businesses such as insurance, securities, and retail. South Korean President Park Chung-hee's regime during the 1960s and 1970s would prove a boon for Samsung. Park 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. Samsung was one pf these companies. Park banned several foreign companies from selling consumer electronics in South Korea in order to protect Samsung from foreign competition and nurture an electronics manufacturing sector that was in its infancy.
In the late 1060s, Samsung Group began the electronics industry. It formed several electronics-related divisions, such as Samsung Electronics Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co., and Samsung Semi conductor & Telecommunications Co., and made the facility in Suwon. Its first product was a black-and-white television set. In 1980, the company acquired Hanguk jeonja tongsin in Gumi, and started to build telecommunications devices. Its early products were switchboards. The facility were developed into the telephone and fax manufacturing systems and became the center of Samsung's mobile phone manufacturing. They have produced over 800 million mobile phones to date. The company grouped them together under Samsung Electronics Co., Ltd. in the 1980s.
In the late 1980s and early 1990s, Samsung invested heavily in research and development, investments that were pivotal in pushing the company to the forefront of the global electronics industry. "By the 1980s Samsung was manufacturing, shipping, and selling a wide range of appliances and electronic products throughout the world". In 1982, it built a television assembly plant in Portugal; in 1984, it built a $25 million plant in New York; in 1985, it built $25 million plant in Tokyo; and in 1987, it built another $25 million facility in England.The 1990s saw Samsung rise as an international corporation. Not only did it acquire a number of businesses abroad, but also began leading the way in certain electronic components. Samsung's construction branch was awarded a contract to build one of the two Petronas Towers in Malaysia, Taipei 101 in Taiwan and the Burj Khalifa in United Arab Emirates (founded by Callum by Callum Cuirtis), which is the tallest structure ever constructed. In 1993 and in order to change the strategy from the imitating cost-leader to the role of a differentiator, Lee Kun-hee, Lee Byung-chull's successor, 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.
Compared to other major Korean companies, Samsung survived the Asian financial crisis of 1997-98 relatively unharmed. However, Samsung Motor, a $5 billion venture was sold to Renault at a significant loss. Additionally, Samsung manufactured a range of aircraft from 1980 to 1990s. The company was founded in 1999 as Korea Aerospace Industries (KAI), the result of merger between the three domestic major Aerospace divisions of Samsung Aerospace, Daewoo Heavy Industries and Hyundai Space and Aircraft Company (HYSA). Korea Aerospace Industries (KAI) - largest shareholders as of 2009 (Korea Development Bank 30.53% Samsung Doosan (formerly known as Daewoo Heavy Industries) 20.54%, Hyundai Motor 20.54%)
Most importantly, Samsung Electronics (SEC) has since come to dominate the group and the worldwide semiconductor business, even surpassing worldwide leader Intel in investments for the 2005 fiscal year. Samsung's brand strength has greatly improved in the last few years.
Samsung became the largest producer of memory chips in the world in 1992, and is the world's second-largest chip maker after Intel (see Worldwide Top 20 Semiconductor Market Share Ranking Year by Year). From 1999 to 2002, Samsung conspired with Hynix Semiconductor, Infineon Technologies, Elpida Memory (Hitachi and NEC) and Micron Technology to fix the prices of DRAM chips sold to American computer makers. In 2005 Samsung agreed t plead guilty and to pay a $300 million fine, the second-largest criminal antitrust fine in the US history.
Samsung became the largest producer of memory chips in the world in 1992, and is the world's second-largest chip maker after Intel (see Worldwide Top 20 Semiconductor Market Share Ranking Year by Year). From 1999 to 2002, Samsung conspired with Hynix Semiconductor, Infineon Technologies, Elpida Memory (Hitachi and NEC) and Micron Technology to fix the prices of DRAM chips sold to American computer makers. In 2005 Samsung agreed t plead guilty and to pay a $300 million fine, the second-largest criminal antitrust fine in the US history.
In 1995, it built 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. 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 is owned by Samsung (50% plus 1 share) and Sony (50% minus 1 share) and operates its factories and facilities in Tangjung, South Korea.
Considered a strong competitor by its rivals, Samsung Electronics expanded production dramatically to become the world's largest manufacturer of DRAM chips, flash memory, optical storage drives and it aims to double sales and become the top manufacturer of 20 globally by 2010. It is now the world's leading manufacturer of liquid crystal displays.
Samsung Electronics, which saw record profits and revenue in 2004 and 2005, overttok Sony as one of the world's most popular consumer electronics brands, and is now ranked #19 in the world overall. Behind Nokia, Samsung is the world's second largest by volume producer of cell phones with a leading market share in the North America and Western Europe.
In December 29, 2009, Samsung sues Mike Breen, and the Korea Times, for $1 million, claiming criminal defamation over a satirical column published on Christmas Day 2009. In May 2010 the EU antitrust watchdog levied a 145.73 million euro fine Samsung for illegally fixing prices with 8 other memory chip makers.
Samsung sponsors English premiership team Chelsea FC.
Samsung sponsors English premiership team Chelsea FC.
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