samsung

The Samsung Group is composed of numerous South Korean businesses including Samsung Electronics. It is helmed by Chairman Kun-hee Lee. The name "Samsung" means "three stars" or "tristar" in Korean. Samsung was founded by Lee Byung-chul.

History

1950s - 1980s

• 1953: Lee Byoung-chul founds Samsung trading company in Daegu ([YPM])
• 1953: Samsung starts sugar production, which has since been spun off into the CJ Corporation.
• 1958: Samsung starts insurance business.
• 1963: The first Shinsegye department store opens in Kwanjou.
• 1965: Samsung starts the Joong-Ang Ilbo daily newspaper, which is no longer affiliated with the company.
• 1969: Samsung Electronics was founded.
• 1974: Samsung Petrochemical and Heavy Industries was founded.
• 1976: The company was awarded an export prize by the government as a part of the country's development program.
• 1977: As a result of this export prize, Samsung Construction emerged. In addition, Samsung Shipbuilding is formed.
• 1982: Samsung establishes a professional baseball team.
• 1983: Samsung produces its first computer chip: a 64k DRAM chip.
• Towards the end of the 1980's, Samsung pushed its efforts in petrochemicals and electronics

The 1990s and present

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 in September 1993 and the Burj Dubai in 2004, which is set to be tallest structure ever created by mankind.

Compared to other major Korean companies, Samsung survived the Asian financial crisis of 1997-98 relatively unharmed. However, Samsung Motor Co, a $5 billion venture was sold to Renault at a significant loss. Most importantly, Samsung Electronics (SEC) was officially spun-off from the Samsung Group and 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, despite scandals and political intrigue.

Considered a strong competitor by its rivals, Samsung Electronics (SEC) expanded production dramatically to become the world's largest manufacturer of DRAM chips, refrigerators, flash memory, dvd-combo drives and it aims to double sales and become the top manufacturer of 20 products globally by 2010. It is now one of the world's leading manufacturers of plasma displays and next generation mobile phones. Due to its involvement in many fields, Samsung is involved in many legal controversies, such as patent infringements against other companies like Fujitsu, who claim to have created plasma display technology first. Samsung has also faced controversy in Korea for its anti-worker policies, although such claims are widely disputed.

Samsung Electronics saw record profits and revenue in 2004, and in 2005, overtook Sony as one of the worlds most valuable consumer electronics brands, and is now ranked #20 in the world overall.

On November 30, 2005 Samsung plead guilty to a charge it participated in DRAM price fixing collusion during 1999-2002 that damaged competition and raised PC prices. In a deal with prosecutors, Samsung Electronics Co. Ltd. and its U.S. subsidiary, Samsung Semiconductor Inc., are to pay $300 million fine. As a result of this investigation, Hynix was to pay $185 million in 2005, Infineon: $160 million in 2004. Micron Technology, the US firm who initiated the case, cooperated with prosecutors and no fine is expected. Recently, a severely weakened Micron has teamed up with Intel to take on Samsung in the lucrative NAND flash business, although Intel has no desire to fully engage Samsung after Samsung drove Intel out of the flash business.

By late 2005, Samsung had a net worth of US$77.6 billion.

Markets

Currently, Samsung has sixteen products that have dominated the world’s market share, including: DRAM, color cathode-ray tube TVs (CPT, CDT), SRAM, TFT-LCD glass substrates, TFT-LCD, STN-LCD, tuner, CDMA handset, color television (CTV), monitor, flash memory, LCD Driver IC (LDI), PDP module, PCB for handheld (mobile phone plates), Flame Retardant ABS, and Dimethyl Formamide (DMF).

According to Interbrand and BusinessWeek, Samsung’s brand value ranked 43rd (USD 5.2billion) in 2000, 42nd (USD 6.4 billion) in 2001, 34th (USD 8.3 billion) in 2002, 25th (USD 10.8 billion) in 2003, 21st (USD 12.5 billion) in 2004, and 20th (14.9 billion) in 2005 among top global companies.

In terms of export that directly contributes to the Korean economy, Samsung took up 18.1% of the all exports with USD 31.2 billion in 2000 and 20.7% with USD 52.7 billion in 2004. In addition, Samsung's tax payments to the Korean government in 2003 was KRW 6.5 trillion, which is about 6.3% of total tax revenue.

The market value of Samsung in 1997 reached KRW 7.3 trillion in 1997, which amounted to 10.3% of the Korean market but this figure increased to KRW 90.8 trillion taking up 22.4% in 2004.

Moreover, the annual net profit of Samsung marked KRW 5.8 trillion in 2001, KRW 11.7 trillion in 2002, KRW 7.4 trillion in 2003, and KRW 15.7 trillion in 2004, showing forth a steady increase.

In order to enhance the working environment and build a strong and trustworthy foundation, the semiconductor sector of Samsung Electronics has been conducting a ‘Great Workplace Program’ called GWP since 1998. Then, in 2003, GWP has spread throughout the entire Samsung Group as Samsung Fire and Marine Insurance, Samsung SDI, Samsung Everland, Samsung Corporation, Cheil Industries, Samsung Networks, and others started to apply its core principles. In 2006, 9 subsidiary companies of Samsung Electronics, 80 overseas branches, and 130 overseas business sectors have reported that they are actively applying the GWP.

Dramatic surge in Net Profits starting in the late 90's: $2.2Bil (1999), $7.3Bil (2000), $8.9Bil (2002), $11.8Bil (2004).

Samsung's Brand Value conducted by Interbrand of the world's top 100 brands: $6.4Bil (2001), $8.3Bil(2002), $10.8Bil(2003), $12.5Bil(2004), $14.9Bil(2005).

Market Capitalization (Ratio to the total market value of all Korean listed stocks):A dramatic increase from 7.3 trillion KRW, 10.3% of the total national listing value in 1997. At the end of 2004 national listing value in 22.4%.

Samsung's Annual Profits Growth: $4.5Bil (2001), $8.9Bil (2002), $5.6Bil (2003), $11.8Bil (2004) and Debt-to-Equity Ratio Decrease: 104% (2000), 78% (2001), 68% (2002), 56% (2003), 51% (2004).

On May 24, 1966, Samsung was detected by Busan customs smuggling 2259 sacks(55 tons) of saccharin, an artificial sweetener widely used in South Korea before sugar. Samsung imported it as construction materials for a newly constructed factory. Busan customs confiscated the remaining 1059 sacks of it and fined 20 million Won^{citation needed]}.

Legitimate inheritance but expediential ways

In October 1996, Samsung Everland, the biggest amusement park in South Korea, issued 1.28 million convertible bonds ('CBs'), each valued at 7,700 Won - considerably cheaper than the company's stock price at the time of 100,000 Won. All shareholders were not given the right to buy these bonds, with the exception of the son and daughters of chairman Lee Kun-hee. Within a short time, the children converted their bonds into stocks, thus becoming the major shareholders of Samsung Everland. This simple process garnered profits of 120 billion Won (about 120 million dollars). In March 24, 1997, Samsung Electronics used the same method, issuing bonds of 60 billion Won to generate another 45 billion Won (about 45 million dollars) of profits for the family. On February 26, 1999, instead of convertible bonds, Samsung SDS issued not convertible bonds but Bonds with Warrants (BWs) at the undervalued price of 7,150 Won. At that time the exact stock price was not known as Samsung SDS was not listed, however, indications are that the stock traded at 54,000-59,000 Won on the Over The Counter market.

The methods outlined above allowed the children of Lee Kun-hee to become the richest in South Korea, as well as successfully assume control of the Samsung Group.

Circular investment

The relations of Samsung companies are very complicated. According to the Financial Supervisory Service of South Korea, Samsung Everland owns 13.3% of Samsung Life Insurance; Samsung Life Insurance holds 34.5% of Samsung Card and 7.2% of Samsung Electronics, as well as more of other Samsung companies; Samsung Electronics in turns keeps 46.0% of Samsung Card and stocks of other Samsung companies; and finally, Samsung Card holds 25.6% of Samsung Everland.

The family of Lee Kun-hee owns 40% of Samsung Everland, whilst Samsung Card holds 25.6%, and related people have another 30%. Thus it is thought that Lee controls 95% of Samsung Everland. Control of one company, through the circular investment, enables the Lee family to control other Samsung companies despite having only relatively minor holdings.

Lawsuits against the company

According to reports, Samsung was sued in 2006 by companies 20th Century Fox, Paramount Pictures, Time Warner, Walt Disney, and Universal Studios. The big five US movie studios claims that one of Samsung's DVD players can be used to avoid encryption technology.

A Samsung spokesman "guessed that the film makers take issue with DVD-HD841, which Samsung sold in the United States between June and October 2004. If so, I do not know why the movie studios are complaining about the products, of which production was brought to an end more than 15 months ago. We stopped manufacturing the model after concerns erupted that its copy-protection features can be circumvented by sophisticated users."

Sports sponsorship

Samsung owns the soccer team, Suwon Samsung Bluewings, in South Korea.

Samsung signed the second biggest sponsorship deal in English soccer history with Premiership Champions Chelsea FC. The five-year deal is estimated to be worth £50 million.

The company sponsors the Sydney Roosters in the Australian NRL rugby league 1995-1997 2004-present. It also sponsors the Melbourne Victory soccer club in the Australian A-League and Sport Club Corinthians Paulista in Brazil's Série A.

Samsung co-sponsors, along with Radio Shack, the Samsung/Radio Shack 500 NASCAR race.

Samsung sponsors Show Jumping's Nations Cup Super League from 1996.

Samsung is the Worldwide Partner for the Olympic Games since 1997.

Samsung has been active in endorsing video game competitions, serving as a sponsor for the World Cyber Games and the professional gaming team, Samsung Khan

Subsidiaries of the Samsung Group

Electronics industries

• Samsung Electronics
• Samsung Electric
• Samsung SDI
• Samsung Corning
• Samsung SDS
• Samsung Networks
• Samsung Corning Precision Glass
• Samsung Techwin

Machinery and heavy industries

• Samsung Heavy Industries
• Samsung Techwin
• Samsung Engineering

Chemical industries

• Samsung Total
• Samsung Petrochemicals
• Samsung Precision Chemicals
• Samsung BP Chemicals

Financial services

• Samsung Life
• Samsung Fire
• Samsung Card
• Samsung Securities
• Samsung Investment Trust Management
• Samsung Venture Investment

Retail services

• Samsung Corporation
• Samsung Plaza

Engineering & construction

• Samsung Constructions
• Samsung Engineering

Entertainment

• Suwon Samsung Bluewings
• Everland
• Samsung Lions
• Samsung Khan
• Hotel Silla

Others

• Samsung Advanced Institute of Technology
• Samsung Economic Research Institute
• Cheil Communications (No 1. Ad agency in Korea)
• S1 Corp.
• Renault Samsung Motors
• Samsung Cheil Apparel
• Samsung Medical Center
• Samsung Manpower Association
• Samsung Culture Association
• Samsung Welfare Association
• Samsung Media Association
• Samsung Hoam Association

See also

• List of Korean companies
• List of Korea-related topics
• FidoBag, a hoax by Samsung
• List of digital camera brands
• Samsung Sens
• Anycall
• Samsung Lee Kun Hee Scholarship Foundation

External links

• Samsung Korean website
• Samsung global website
• Samsung Advanced Institute of Technology
• Linux on Samsung Laptops (user experiences)
• Yahoo! - Samsung Group Company Profile
• Samsung Company Profile and News Archive
• Show Jumping Nations Cup Super League
• Samsung mp3 player