Samsung

Samsung Logo

Introduction

Samsung Group (Korean: 삼성그룹 / Samseong Geurup / [sam'sʌŋ gɯ'ɾup], informally Samsung) is a South Korean multinationalconglomerate company headquartered 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.

Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest information technology company measured by 2011 revenues),^[3][4] Samsung Heavy Industries (the world's second-largest shipbuilder measured by 2010 revenues),^[5] and Samsung Engineeringand Samsung C&T (respectively the world's 35th- and 72nd-largest construction companies).^[6] Other notable subsidiaries include Samsung Life Insurance (the world's 14th-largest insurance company),^[7] Samsung Everland (the oldest theme park in South Korea)^[8] and Cheil Worldwide (the world's 19th-largest advertising agency measured by 2010 revenues).^[9][10]

Samsung produces around a fifth of South Korea's total exports^[11] and its revenues are larger than many countries' GDP; in 2006, it would have been the world's 35th-largest economy.^[12] The company 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".^[13][14]

History

1938-1970

In 1938,^[16] Lee Byung-chull (1910–1987) of a large landowning family in the Uiryeong county came to the nearby Daegu city and foundedSamsung Sanghoe (삼성상회), 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 as a name of Cheil Jedang. 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 diversified into many areas and Lee sought to 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.

Samsung Headquarters in Daegu,South Korea in 1930s

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 parted ways due to some differences in management between the two men. He wanted to get up to a 30% group share. After settlement, Samsung Group was separated into Samsung Group and Hyosung Group, Hankook Tire ...etc.^[17][18]

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.

1970-1990

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.^[20] 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.^[21] 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.^[22] 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."^[22]

SPC-1000, samsung's first personal computer in 1982

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 in England; and another facility in Austin in 1996. In total, Samsung has invested about $5.6 billion in the Austin location – by far the largest foreign investment in Texas and one of the largest single foreign investments in the United States. The new investment will bring the total Samsung investment in Austin to more than $9 billion.^[23]

1990-2000

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 the Burj Khalifa in United Arab Emirates.^[24] 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).^[25] 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, 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.^[26]

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. ^[27]

2000-present

Samsung Techwin has been the sole supplier of a combustor module of the Trent 900 engine of the Rolls-Royce Airbus A380-The largest passenger airliner in the world- since 2001.^[28] Samsung Techwin of Korea is a revenue-sharing participant in the Boeing's 787 Dreamliner GEnx engine program.^[29]

Samsung Electronics overtook Sony as one of the world's most popular consumer electronics brands in 2004 and 2005, and is now ranked #19 in the world overall.^[30] In Q3 of 2011, Samsung has overtaken Apple to become the World's Largest Smartphone maker.^[31]

Samsung headquarter at Seoul,South Korea

In 2010, Samsung announced a 10-year growth strategy centered around five businesses.^[32] One of these businesses was to be focused onbiopharmaceuticals, to which the Company has committed ₩2.1 trillion.^[33]

In December 2011, Samsung Electronics sold its hard disk drive (HDD) business to Seagate.^[34]

By : Science Shrestha