Samsung Group (Hangul: 삼성그룹; Hanja: 三星그룹; Korean pronunciation: [sam.sʌŋ ɡɯ’ɾup̚]) is a South Korean multinational conglomerate company headquartered inSamsung 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 Kun-hee 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 globalised its activities, and electronics, particularly mobile phones and semiconductors, has 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), Samsung Heavy Industries (the world’s second-largest shipbuilder measured by 2010 revenues), andSamsung Engineering and Samsung C&T (respectively the world’s 35th- and 72nd-largest construction companies).
Other notable subsidiaries include Samsung Life Insurance(the world’s 14th-largest life insurance company), Samsung Everland (operator of Everland Resort, the oldest theme park in South Korea) and Cheil Worldwide (the world’s 19th-largest advertising agency measured by 2010 revenues). 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
NameAccording to the founder of Samsung Group, the meaning of the Korean hanja word Samsung (三星) is “tristar” or “three stars”. The word “three” represents something “big, numerous and powerful”; the “stars” mean eternity.
History1938 to 1970
The headquarters of Samsung Sanghoein Daegu in the late 1930s In 1938, Lee Byung-chull (1910–1987) of a large landowning family in the Uiryeong county came to the nearby Daegu city and founded Samsung Sanghoe (삼성상회, 三星商會), 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 named Cheil Jedang. After the war, in 1954, Lee founded Cheil Mojik and built the plant in Chimsan-dong, Daegu.
It was the largest woollen 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. 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.
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 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 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 to 1990
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 drivewas optional 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. 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. 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. 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 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 LLC. 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(see Worldwide Top 20 Semiconductor Market Share Ranking Year by Year). 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 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. 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 enginesand gas turbines.  2000 to present
The Samsung pavilion at Expo 2012In 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 10-year growth strategy centred around five businesses.One of these businesses was to be focused on biopharmaceuticals, to which theCompany has committed ₩
2.1 trillion. In December 2011, Samsung Electronics sold its hard disk drive (HDD) business toSeagate. 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 21st 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 August 24, 2012, a U.S jury ruled that Samsung had to pay Apple Incorporated US$1.05 billion dollars in damages for violating its patents on smartphone technology. Samsung decried the decision saying that the move could harm innovation in the sector. It also followed a South Korean ruling that said 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 (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 which has been denied by Judge Koh. On September 4, 2012, Samsung announced 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.
Samsung comprises around 80 companies. It is highly diversified, with activities in areas including construction, electronics, financial services, shipbuilding and medical services.[ Samsung Electronics Co., Ltd. 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 (including thin film transistors
(TFTs) and active-matrix organic light-emitting diodes (AMOLEDs)), mobile phones, monitors, printers, refrigerators, semiconductors and telecoms 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 (after Intel). samsung Engineering Co., Ltd.
Is a multinational construction company headquartered in Seoul. It was founded in January 1970. Its principal activity is the construction of oil refining plants; upstream oil and gas facilities; petrochemical plants and gas plants; steel making plants; power generation plants; water treatment facilities; and other infrastructure. It achieved total revenues of 9,298.2 billion won (US$8.06 billion) in 2011.
Samsung Heavy Industries Co., Ltd. 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 (after Hyundai Heavy Industries).
Samsung Electronics commenced its operations in India in December 1995 and is today a leading provider of Consumer Electronics , IT and Telecom products in the Indian market. Samsung India is the Regional Headquarters for Samsung’s South West Asia operations, which provides employment to over 8,000 employees with around 6,000 employees being involved in R&D. In 2010, Samsung India achieved a sales turnover of US$3.5 billion.
Samsung began operations in India through its manufacturing complex located at Noida (UP), which today houses facilities for Colour Televisions (including 3D, LED and LCD Televisions), Mobile Phones, Refrigerators, Washing Machines and Split Air Conditioners categories. Samsung commenced operations of its second state–of-the-art manufacturing complex at Sriperumbudur, Tamil Nadu in November 2007. Today, the Sriperumbudur facility manufactures Colour televisions, Fully Automatic Front Loading Washing Machines, Refrigerators and Split Air Conditioners.
Samsung India has two R&D Centres in India – at Delhi and Bangalore .While the Delhi R&D Centre develops software solutions for hi-end televisions such as Plasma TVs, LCD TVs and Digital Media Products, the Bangalore R&D Centre works on major projects for Samsung Electronics in the area of telecom, wireless terminals and infrastructure, Networking, SoC (System on Chip) Digital Printing and other multimedia/digital media as well as application software. Samsung India is a market leader in product categories like LED TVs, LCD TVs, Slim TVs and Side by Side Refrigerators. While it is the second largest mobile handset brand in India, it leads in the smart phone segment in India.
Samsung India has won several awards and recognitions for both its corporate initiatives as well as its product innovations in audio visual, home appliance, IT and telecom product categories. Apart from development of innovative technology, Samsung places great importance on acting as a responsible corporate citizen in the communities where it operates. Its CSR programs respond to the social and environmental needs and seek to give back to communities that support the company.
In 2009, Samsung launched the company’s Corporate Social Responsibility initiative – ‘Samsung Hope Project’ with projects in the areas of education, culture, sports, social welfare and community development. Each program under the Hope Project uniquely addresses the needs of individual communities while emphasizing on innovations for development of the community including education, technology, engineering and IT technical training.