Samsung Group is a South Korean multinational
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. 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, Samsung Heavy Industries,
and Samsung Engineering and Samsung C&T. Other notable subsidiaries include Samsung Life
Insurance, Samsung Everland, Samsung Techwin and Cheil Worldwide.
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”.
Its affiliate companies produce around a fifth of South Korea’s total exports. Samsung’s
revenue was equal to 17% of South Korea’s $1,082 billion GDP.
In 2013, Samsung began construction on building the world’s largest mobile phone factory in
the Thai Nguyen province of Vietnam. Name
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”;
the “stars” mean eternity. History
1938 to 1970 In 1938, Lee Byung-chull 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. 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 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. In 1947, Cho Hong-jai 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.
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 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. 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 groups—Samsung Group, Shinsegae Group, CJ Group, and the
Hansol Group. Shinsegae was originally part of Samsung Group, separated in the 1990s from
the Samsung Group along with CJ Group and the Hansol Group. Today these separated groups
are independent and they are not part of or connected to the Samsung Group. 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”. 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.
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 the Burj Khalifa in United
Arab Emirates. 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. 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 and Sony 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.
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, 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. 2000 to 2014 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 important
R&D center in Europe, forecast to be recruiting 400 new-hires per year by the end of 2013.
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. Samsung Techwin
is also a revenue-sharing participant in the Boeing’s 787 Dreamliner GEnx engine program. In 2010, Samsung announced a ten-year growth
strategy centered around five businesses. One of these businesses was to be focused
on biopharmaceuticals, to which the company has committed ₩2.1 trillion.
In December 2011, Samsung Electronics sold its hard disk drive business to Seagate.
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. 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.
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 24 August 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. Samsung decried the decision saying
that the move could harm innovation in the sector. It also followed a South Korean ruling
stating that both companies were guilty of infringing on each other’s intellectual property.
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. Apple then sought to ban the sales
of eight Samsung phones in the United States which has been denied by the court.
On 4 September 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. In 2013, a New Zealand news outlet reported
a number of Samsung washing machines spontaneously catching on fire. 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. On May 22, 2014, Samsung announced Samsung
Music will be shutting down on July 1st, 2014. This spells the disappearance of Samsung Music
Hub. Acquisitions and attempted acquisitions
Samsung has made the following acquisitions and attempted acquisitions:
Rollei – Swiss watch battle Samsung Techwin acquired a German camera-maker
Rollei in 1995. Samsung 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 March 11, 1995, the Cologne District court
prohibited the advertising and sale of Rollei watches on German territory.
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—notified the South Korean
government that they would not join Samsung Aerospace Industries.
AST Research Samsung bought AST and tried to break into
North America, but the effort was unsuccessful. Samsung was forced to close the California-based
computer maker following mass defection of research staff and a string of losses.
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 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. 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. Ironically, after few months Samsung Securities Co., Ltd. and City of London-based
N M Rothschild & Sons have agreed to form a strategic alliance in investment banking
business. Two parties will jointly work on cross border mergers and acquisition deals.
MEDISON Co.,Ltd. – Ultrasound Monitors In December 2010, Samsung Electronics bought
MEDISON Co., a South Korean medical-equipment company, the first step in a long-discussed
plan to diversify from consumer electronics. Grandis Inc. – memory developer
In July 2011, Samsung announced that it had acquired spin-transfer torque random access
memory vendor Grandis Inc. Grandis will become a part of Samsung’s R&D operations and will focus on development of next generation random-access memory.
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 venture for 1.08 trillion won. 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. 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. 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. Operations Samsung comprises around 80 companies. It
is highly diversified, with activities in areas including construction, consumer electronics,
financial services, shipbuilding, and medical services.
In FY 2009, Samsung reported consolidated revenues of 220 trillion KRW. In FY 2010,
Samsung reported consolidated revenues of 280 trillion KRW, and profits of 30 trillion
KRW. However, it should be noted that these amounts do not include the revenues from all
of Samsung’s subsidiaries based outside South Korea.
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. Principal subsidiary and affiliate companies
of Samsung include: Ace Digitech
Ace Digitech is listed on the Korea Exchange stock-exchange.
Cheil Industries Cheil Industries is listed on the Korea Exchange
stock-exchange. Cheil Worldwide
Cheil Worldwide is listed on the Korea Exchange stock-exchange.
Credu Credu is listed on the Korea Exchange stock-exchange.
Imarket Korea Imarket Korea is listed on the Korea Exchange
stock-exchange. Samsung Card
Samsung Card is listed on the Korea Exchange stock-exchange.
Samsung SDS Samsung SDS is a multinational IT Service
company headquartered in Seoul. It was founded in March 1985. Its principal activity is the
providing IT system(ERP, IT Infrastructure, IT Consulting, IT Outsourcing, Data Center).
Samsung SDS is the Korea’s largest IT service company. It achieved total revenues of 6,105.9
billion won in 2012. Samsung C&T Corporation
Samsung C&T Corporation is listed on the Korea Exchange stock-exchange.
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.
Samsung Electronics Samsung Electronics is a multinational electronics
and information technology company headquartered in Suwon and the flagship company of the Samsung
Group. Its products include air conditioners, computers, digital televisions, liquid crystal
displays and active-matrix organic light-emitting diodes), mobile phones, monitors, printers,
refrigerators, semiconductors, and telecommunications networking equipment. 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%. It is also the world’s second-largest semiconductor maker by 2011 revenues.
Samsung Electronics is listed on the Korea Exchange stock-exchange.
Samsung Engineering Samsung Engineering is a multinational construction
company headquartered in Seoul. It was founded in January 1969. Its principal activity is
the construction of oil refining plants; upstream oil and gas facilities; petrochemical plants
and gas plants; steel making plants; power plants; water treatment facilities; and other
infrastructure. It achieved total revenues of 9,298.2 billion won in 2011.
Samsung Engineering is listed on the Korea Exchange stock-exchange.
Samsung Everland Samsung Everland engages in an array of services
closely associated with the day-to-day lives and business operations of its customers.
Its business scope covers the three main sectors of Environment & Asset, Food Culture, and
Resort. Since its inception in 1963 and the launch
of theme park “Everland” in 1976, Samsung Everland has steadily built its presence across
the markets of golf, building management, food and beverage, energy, and environment.
Through this process, Samsung Everland has managed to achieve its current market standing.
As a corporation trusted by the local community and renowned globally as a pioneer in the
infrastructure of life, Samsung Everland strives to help its customers lead fulfilling lives
and achieve success in their business operations by building the infrastructure for every aspect
of life including entertainment, culinary, and business.
Samsung Fine Chemicals Samsung Fine Chemicals is listed on the Korea
Exchange stock-exchange. Samsung Fire & Marine Insurance Samsung Fire & Marine Insurance is a multinational
general insurance company headquartered in Seoul. It was founded in January 1952 as Korea
Anbo Fire and Marine Insurance and was renamed Samsung Fire & Marine Insurance in December
1993. Samsung Fire & Marine Insurance offers services including accident insurance, automobile
insurance, casualty insurance, fire insurance, liability insurance, marine insurance, personal
pensions and loans. As of March 2011 it had operations in 10 countries and 6.5 million
customers. Samsung Fire & Marine Insurance had a total premium income of $11.7 billion
in 2011 and total assets of $28.81 billion on 31 March 2011. It is the largest provider
of general insurance in South Korea. Samsung Fire has been listed on the Korea
Exchange stock-exchange since 1975. Samsung Heavy Industries Samsung Heavy Industries 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. It achieved total revenues of
13,358.6 billion won in 2011 and is the world’s second-largest shipbuilder by revenues.
Samsung Heavy Industries is listed on the Korea Exchange stock-exchange.
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. Samsung Life’s principal
activity is the provision of individual life insurance and annuity products and services.
As of December 2011 it had operations in seven countries, 8.08 million customers and 5,975
employees. Samsung Life had total sales of 22,717 billion won in 2011 and total assets
of 161,072 billion won at 31 December 2011. It is the largest provider of life insurance
in South Korea. Samsung Life Insurance is listed on the Korea
Exchange stock-exchange Samsung Machine Tools
Samsung Machine Tools of America is a national distributor of machines in the United States.
Samsung GM Machine Tools is the head office of China, It ‘s SMEC Legal incorporated company.
Samsung Medical Center The Samsung Medical Center was founded on
November 9, 1994, under the philosophy of “contributing to improving the nation’s
health through the best medical service, advanced medical research, and development of outstanding
medical personnel”. The Samsung Medical Center consists of a hospital and a cancer center.
The hospital is located in an intelligent building with floor space of more than 200,000
square meters and 20 floors above ground and 5 floors underground, housing 40 departments,
10 specialist centers, 120 special clinics, and 1,306 beds.
The 655-bed Cancer Center has 11 floors above ground and 8 floors underground, with floor
space of over 100,000 square meters. SMC is a tertiary hospital manned by approximately
7,400 staff including over 1,200 doctors and 2,300 nurses. Since its foundation, the Samsung
Medical Center has successfully incorporated and developed an advanced model with the motto
of becoming a “patient-centered hospital”, a new concept in Korea.
Samsung SDI Samsung SDI is listed on the Korea Exchange
stock-exchange. On December 5, 2012, the EU’s antitrust regulator fined Samsung SDI and
several other major companies for fixing prices of TV cathode-ray tubes in two cartels lasting
nearly a decade. Samsung Securities
Samsung Securities is listed on the Korea Exchange stock-exchange.
Samsung Techwin Samsung Techwin is listed on the Korea Exchange
stock-exchange. Shilla Hotels and Resorts
The Hotel opened in March 1979, following the intention of the late Lee Byung-chull,
the founder of the Samsung Group. Hosting numerous state visits and international events,
it has played the role of locomotive for the service industry in Korea with pride and responsibility
as “the face representing the Samsung Group” and “the hotel representing Korea”. THE SHILLA
maintains elegance and a tradition of winning guests’ hearts with the aim of becoming
“the best hospitality company”. By joining LHW, it is on par with the most luxurious
hotels in the world. Meanwhile, it has added modernistic design elements on top of the
roof called tradition, thus going through changes to make itself a premium lifestyle
space. In addition, with its know-how as a service company in the background, it started
a duty-free shop business, and has built its image as the best global distribution company.
Also, it is expanding its business into commissioned management of fitness facilities with five-star
hotels in Korea and abroad as well as into the restaurant business. THE SHILLA promises
to be a globally prestigious hospitality company that offers the best value for money by making
creative innovations and continuously taking on challenges. Shilla Hotels and Resorts is
listed on the Korea Exchange stock-exchange. S-1 Corporation
S-1 was founded as Korea’s first specialized security business in 1997 and has maintained
its position at the top of industry with the consistent willingness to take on challenges.
S1 Corporation is listed on the Korea Exchange stock-exchange. Joint ventures
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. Brooks Automation Asia
Brooks Automation Asia Co., Ltd. is a joint venture between Brooks Automation and Samsung
which was established in 1999. The venture locally manufactures and configure vacuum
wafer handling platforms and 300mm Front-Opening Unified Pod load port modules, and designs,
manufactures and configures atmospheric loading systems for flat panel displays.
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. Samsung Air China Life Insurance
Samsung Air China Life Insurance is a 50:50 joint venture between Samsung Life Insurance
and China National Aviation Corporation. It was established in Beijing in July 2005.
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 AG and Biogen
Idec Inc. Samsung Bioepis
Samsung Bioepis is a joint venture between Samsung Biologics and the U.S.-based Biogen
Idec. In 2014, Biogen Idec agreed to commercialize future anti-TNF biosimilar products in Europe
through Samsung Bioepis. Samsung BP Chemicals
Samsung BP Chemicals is a 49:51 joint venture between Samsung and the UK-based BP, which
was established in 1989 to produce and supply high-value-added chemical products.
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, South Korea, in 1996.
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. Samsung Thales
Samsung Thales 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.
Samsung Total Samsung Total is a 50:50 joint venture between
Samsung and the France-based oil group Total S.A..
SB LiMotive SB LiMotive is a 50:50 joint company of Robert
Bosch GmbH 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.
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
companies. Sermatech Korea
Sermatech owns 51% of its stock, while Samsung owns the remaining 49%. The U.S. firm Sermatech
International, for a business specializing in aircraft construction processes such as
special welding and brazing. Siam Samsung Life Insurance
Samsung Life Insurance holds a 37% stake while the Saha Group also has a 37.5% stake in the
joint venture, with the remaining 25% owned by Thanachart Bank.
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. 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 polysilicon plant. Steco
Steco Co. is the joint venture established between Samsung Electronics and Japan’s Toray
Industries in 1995. Stemco
Stemco is a joint venture established between Samsung Electro-Mechanics and Toray Industries
in 1995. Toshiba Samsung Storage Technology
Toshiba Samsung Storage Technology Corporation 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, while Samsung owns the remaining 49%.
Defunct Alpha Processor
In 1998, Samsung created a U.S. joint venture with Compaq—called Alpha Processor Inc.–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. 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 in 2009.
Global Steel Exchange Global Steel Exchange was a joint venture
formed in 2000 between Samsung, the U.S.-based Cargill, the Switzerland-based Duferco Group,
and the Luxembourg-based Tradearbed, to handle their online buying and selling of steel.
S-LCD S-LCD Corporation was a joint venture between
Samsung Electronics and the Japan-based Sony Corporation 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. Partially owned companies
Atlântico Sul Samsung Heavy Industries owns 10% of the Brazilian
shipbuilder Atlântico Sul, whose Atlântico Sul Shipyard is the largest shipyard in South
America. The Joao Candido, Brazil’s largest ship, was built by Atlântico Sul with technology
licensed by Samsung Heavy Industries. The companies have a technical assistance agreement
through which industrial design, vessel engineering, and other know-how is being transferred to
Atlântico Sul. 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.
Corning Inc. Samsung acquired 7.4% of Gorilla Glass maker
Corning, signing a long-term supply deal. Doosan Engine
Samsung Heavy Industries currently holds a 14.1% stake in Doosan Engine, making it the
second-largest shareholder. Korea Aerospace Industries
Samsung Techwin currently holds a 10% stake in Korea Aerospace Industries. Other major
shareholders include the state-owned Korea Finance Corporation, Hyundai Motor and Doosan.
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. Pantech
Samsung buys 10% stake in rival phone maker Pantech.
Rambus Incorporated Samsung currently owns 4.19% of Rambus Incorporated.
Renault Samsung Motors Samsung currently owns 19.9% of the automobile
manufacturer Renault Samsung Motors. Seagate Technology
Samsung currently owns 9.6% 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. Sharp Corporation
Samsung owns 3% of the rival company. SungJin Geotec
Samsung Engineering holds a 10% stake in Sungjin Geotec, an offshore oil drilling company that
is a subsidiary of POSCO. Taylor Energy
Taylor Energy is an independent American oil company that drills in the Gulf of Mexico
based in New Orleans, Louisiana. Samsung Oil & Gas USA Corp., subsidiaries of Samsung,
currently owns 20% of Taylor Energy. Wacom
Samsung owns 5% of the company. Major customers Major customers of Samsung include:
Royal Dutch Shell Samsung Heavy Industries will be the sole
provider of liquefied natural gas storage facilities worth up to US$50 billion to Royal
Dutch Shell for the next 15 years. Shell unveiled plans to build the world’s
first floating liquefied natural gas platform. At Samsung Heavy Industries’ shipyard on Geoje
Island in South Korea, work is about to start on a “ship” that, when finished and fully
loaded, will weigh 600,000 tonnes, the world’s biggest “ship”. That is six times larger than
the largest U.S. aircraft carrier. United Arab Emirates government
A consortium of South Korean firms, including Samsung, Korea Electric Power Corporation,
and Hyundai, won a deal worth $40 billion to build nuclear power plants in the United
Arab Emirates. Ontario government
The government of the Canadian province of Ontario signed off one of the world’s largest
renewable energy projects, signing a deal worth $6.6 billion to for an additional 2,500
MW of new wind and solar energy. 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. Logo
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, which the company has employed for years, symbolizing
stability, reliability, and corporate social responsibility.
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. 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. Samsung Medical Center incorporates
Samsung Seoul Hospital, Kangbook Samsung Hospital, Samsung Changwon Hospital, Samsung Cancer
Center and Samsung Life Sciences Research Center. The Samsung Cancer Center, located
in Seoul, is the largest cancer center in Asia.
Samsung Medical Center and pharmaceutical multinational Pfizer have agreed to collaborate
on research to identify the genomic mechanisms responsible for clinical outcomes in hepatocellular
carcinoma. Sponsorships Samsung sponsors Bundesliga club Bayern Munich.
Samsung are the current sponsors of Premier League football club Chelsea. They also sponsor
English Football League One clubs Swindon Town and Leyton Orient.
Samsung, which started as a domestic sponsor of the Olympics in Seoul 1988, has been a
worldwide Olympic partner since the 1998 Winter Olympics.
Samsung operating many sports clubs, football club Suwon Samsung Bluewings, baseball club
Samsung Lions, basketball club Seoul Samsung Thunders, volleyball club Daejeon Samsung
Fire Bluefangs and 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. Samsung Electronics spent an estimated $14
billion – more than Iceland’s GDP – on advertising and marketing in 2013. At 5.4%
of annual revenue, this is a larger proportion than any of the world’s top-20 companies
by sales. Samsung became the world’s biggest advertiser in 2012, spending $4.3 billion,
compared to Apple’s $1 billion. Samsung’s global brand value of $39.6 billion is less
than half that of Apple. Controversies Financial scandals
In 2007 former Samsung chief lawyer Kim Yong Chul claimed that he was involved in bribing
and fabricating evidence on behalf of the group’s chairman Lee Kun-hee and the company.
Kim said that Samsung lawyers trained executives to serve as scapegoats in a “fabricated scenario”
to protect Lee, even though those executives were not involved. Kim also told the media
that he was “sidelined” by Samsung after he refused to pay a $3.3 million bribe to the
U.S. Federal District Court judge presiding over a case where two of their executives
were found guilty on charges related to memory chip price fixing. Kim revealed that the company
had raised a large amount of secret funds through bank accounts illegally opened under
the names of up to 1,000 Samsung executives—under his own name, four accounts were opened to
manage 5 billion won. Antitrust concerns
“You can even say the Samsung chairman is more powerful than the President of South
Korea. Korean people have come to think of Samsung as invincible and above the law”,
said Woo Suk-hoon, host of a popular economics podcast in a Washington Post article headlined
“In South Korea, the Republic of Samsung”, published on December 9, 2012. Critics claimed
that Samsung knocked out smaller businesses, limiting choices for Korean consumers, and
sometimes colluded with fellow giants to fix prices while bullying those who investigate.
Lee Jung-hee, a South Korean presidential candidate, said in a debate, “Samsung has
the government in its hands. Samsung manages the legal world, the press, the academics
and bureaucracy”. Viral marketing
The Fair Trade Commission of Taiwan is investigating Samsung and its local Taiwanese advertising
agency for false advertising. The case was commenced after the Commission received complaints
stating that the agency hired students to attack competitors of Samsung Electronics
in online forums. Samsung Taiwan made an announcement on its Facebook page in which it stated that
it had not interfered with any evaluation report and had stopped online marketing campaigns
that constituted posting or responding to content in online forums.
References External links