Samsung

From Wikipedia, the free encyclopedia

For the publicly traded company, see Samsung Electronics.
Not to be confused with Samsun.
Samsung Group


Samsung Town, Seoul
Type
Chaebol
Industry
Conglomerate
Founded
1938
Founders
Lee Byung-chul
Headquarters
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$ 327 billion (FY 2013)
[1]

Net income
US$ 30.1 billion (FY 2013)
[1]

Total assets
US$ 100.4 billion (FY 2013)
[1]

Total equity
US$ 70.3 billion (FY 2013)
[1]

Employees
427,000 (FY 2013)
[1]

Subsidiaries
Samsung Electronics
Samsung Life Insurance
Samsung Fire & Marine Insurance
Samsung Heavy Industries
Samsung C&T
Samsung SDS
Samsung Techwin etc.
Website
Samsung.com
Samsung
Hangul
Hanja
Revised Romanization Samseong
McCuneReischauer Samsng

This article
contains Korean text.Without
proper rendering support, you may
see question marks, boxes, or other
symbols instead
of Hangul andhanja.
Samsung Group (Hangul: ; hanja: ; Korean pronunciation: [sams up]) is a
South Koreanmultinational conglomerate 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 (business conglomerate).
Samsung was founded by Lee Byung-chul 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 globalized its activities, and electronics, particularly mobile phones and
semiconductors, have 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, and 4th in market
value),
[2]
Samsung Heavy Industries (the world's 2nd-largestshipbuilder measured by 2010
revenues),
[3]
and Samsung Engineering and Samsung C&T (respectively the world's 13th and
36th-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 (an aerospace,
surveillance and defense company) and Cheil Worldwide (the world's 15th-largest advertising
agency measured by 2012 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]
Samsung's revenue was
equal to 17% of South Korea's $1,082 billion GDP.
[12]

In 2013, Samsung began construction on building the world's largest mobile phone factory in the
Thai Nguyen province ofVietnam.
[13]
Samsung has been able to achieve the largest market share
of nearly 31% in the global smartphone segment, as of 2013.
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 2014

Name[edit]
According to the founder of Samsung Group, the meaning of the Korean hanja word Samsung (
) is "tristar" or "three stars". The word "three" represents something "big, numerous and
powerful".
[14]

History[edit]
1938 to 1970[edit]

The headquarters of Sanghoes in Daegu in the late 1930s
In 1938, Lee Byung-chull (19101987) of a large landowning family in the Uiryeong county came
to the nearby Daegu city and founded Samsung Sanghoe (, ), a small trading
company with forty employees located in Su-dong (now Ingyo-dong).
[15]
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 Mojikand built the plant in Chimsan-dong, Daegu. It was the largest woolen
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. President Park Chung Hee 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.
[16]

In 1947, Cho Hong-jai (the Hyosung groups founder) jointly invested in a new company called
Samsung Mulsan Gongsa (), 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.
[17][18]

In the late 1960s, Samsung Group entered into the electronics industry. It formed several
electronics-related divisions, such as Samsung Electronics Devices, Samsung Electro-
Mechanics, Samsung Corning, and Samsung Semiconductor & Telecommunications, and made
the facility in Suwon. Its first product was a black-and-white television set.
1970 to 1990[edit]

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 drive was optional
[19]

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 center 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 in the 1980s.
After Lee, the founder's death in 1987, Samsung Group was separated into four business
groupsSamsung Group, Shinsegae Group, CJ Group, and the 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]

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, Texas, 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. This makes the Austin location the
largest foreign investment in Texas and one of the largest single foreign investments in
the United States.
[23][24]

1990 to 2000[edit]
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 Towersin Malaysia, Taipei
101 in Taiwan and the Burj Khalifa in United Arab Emirates.
[25]
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 theSungkyunkwan 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).
[26]
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 one share) and Sony (50% minus one share) and operates its factories and facilities in
Tangjung, South Korea. As of 26 December 2011 it was announced that Samsung had acquired
the stake of Sony in this joint venture.
[27]

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 ofaircraft from the 1980s to 1990s. The
company was founded in 1999 as Korea Aerospace Industries (KAI), the result of merger
between then three domestic majoraerospace divisions of Samsung Aerospace, Daewoo Heavy
Industries, and Hyundai Space and Aircraft Company. However, Samsung still
manufactures aircraft engines and gas turbines.
[28]

2000 to 2014[edit]

The Samsung pavilion at Expo 2012.
In 2000, Samsung opened a computer programming laboratory in Warsaw, Poland. Its work
began with set-top-box technology before moving into digital TV and smartphones. As of 2011,
the Warsaw base is Samsung's most importantR&D center in Europe, forecast to be recruiting
400 new-hires per year by the end of 2013.
[29]

In 2001, Samsung Techwin became the sole supplier of a combustor module for the Rolls-
Royce Trent 900 used by theAirbus A380, the world's largest passenger airliner.
[30]
Samsung
Techwin is also a revenue-sharing participant in theBoeing's 787 Dreamliner GEnx engine
program.
[31]


The prominent Samsung sign in Times Square, New York City.
In 2010, Samsung announced a ten-year growth strategy centered around five
businesses.
[32]
One of these businesses was to be focused on biopharmaceuticals, 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]

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.
[35][36]
In the
August 21 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.
[37]
The conversion should start in early 2013 with production on line by the end of 2013. On
March 14, 2013, Samsung unveiled the Galaxy S4.
On August 24, 2012, nine American jurors ruled that Samsung had to pay Apple$1.05 billion in
damages for violating six of its patents on smartphone technology. The award was still less than
the $2.5 billion requested by Apple. The decision also ruled that Apple did not violate five
Samsung patents cited in the case.
[38]
Samsung decried the decision saying that the move could
harm innovation in the sector.
[39]
It also followed a South Korean ruling stating that both
companies were guilty of infringing on each other's intellectual property.
[40]
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.
[41]
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
[42]
which has been
denied by the court.
[43]

On September 4, 2012, Samsung announced that 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.
[44]

In 2013, a New Zealand news outlet reported a number of Samsung washing machines
spontaneously catching on fire.
[45]
The corporation is expected to spend $14 billion on advertising
and marketing in 2013, with publicity appearing in TV and cinema ads, on billboards, and at
sports and arts events. In November 2013, the corporation was valued at $227 billion.
[46]

On May 22, 2014, Samsung announced Samsung Music will be shutting down on July 1, 2014.
This spells the disappearance of Samsung Music Hub.
[47]

On September 3, 2014, Samsung announced Gear VR, a virtual reality device in collaboration
with Oculus VR and developed for the Galaxy Note 4.
[48]