For more than 70 years, Samsung has been dedicated to creating a better world through different businesses that now span advanced technology and more. Samsung leads the global market in high-tech electronics manufacturing and digital media.
Table of Contents
History21938 to 197021970 to 199031990 to 2000 42000 to Present 5The Samsung Philosophy7Values7Vision 20208
History1938 to 1970In 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, a small trading company with 40 workers located in Su-dong (now Ingyo-dong). The company dealt in groceries produced in and around the city and produced its own noodles. In 1947 The Company prospered and Lee moved its head office to Seoul. While the Korean War broke out, however, he was forced to leave Seoul and started a sugar plant in Busan named Cheil Jedang.
Later the war, in 1954, Lee founded Cheil Mojik and built the plant in Chimsan-dong, Daegu. It was the biggest woollen mill ever in the country and the company took on the aspect of a major company. Samsung expanded into many parts and Lee wanted 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 reputation on industrialization, and focused his economic development plan 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, or the Samsung Trading Corporation, with the Samsung Group founder Lee Byung-chull. The company firm grew to become the present-day Samsung C&T Corporation. However after some years Cho and Lee disjointed due to differences in administration between them. He wanted to get up to a 30% group part. After settlement, Samsung Group was divided into Samsung Group and Hyosung Group, Hankook Tire, and others.
In 1960, Samsung Group arrived into the electronics business. 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
In 1980, Samsung acquired the Gumi-based Hanguk Jeonja Tongsin and entered the telecommunications hardware industry. Its early merchandises were switchboards. The facility was developed into the telephone and fax manufacturing systems and became the center of Samsung’s mobile phone industrial. They have made over 800 million mobile phones to date. The company grouped them together below Samsung Electronics Co., Ltd. in 1980. After the founder’s death in 1987, Samsung Group was disjointed 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). Nowadays these separated groups are liberated and they are not part of or associated to the Samsung Group. In 1980, Samsung Electronics initiated to participate heavily in investigation and development, investments that were essential in pushing the company to the front of the global electronics industry.
In 1982, it constructed a television association 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 financed more than US$13 billion in the Austin facility, which works 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 increase as an international corporation in the 1990s. Samsung’s construction division was awarded a deal 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 focus on three industries: electronics, engineering, and chemicals. In 1996, the Samsung Group reacquired the Sungkyunkwan University foundation.
Samsung developed 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, Samsung produced its first liquid-crystal display screen. Ten years later, Samsung grew to be the world’s largest manufacturer of liquid-crystal show panels. Sony, which had not invested in large-size TFT-LCDs, communicated Samsung to cooperate, and, in 2006, S-LCD was recognized as a joint project between Samsung and Sony in order to provide a stable supply of LCD panels for both companies. S-LCD was kept by Samsung (50% plus 1 share) and Sony (50% minus 1 share) and works 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 main Korean companies, Samsung lived the 1997 Asian financial crisis relatively unharmed. Though, 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.
Moreover, 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 union between then three domestic main aerospace divisions of Samsung Aerospace, Daewoo Heavy Industries, and Hyundai Space and Aircraft Company. But, Samsung still manufactures aircraft engines and gas turbines. 2000 to present
Samsung Techwin has been the sole supplier of a combustor module of the Trent 900 engine of the Rolls-Royce Airbus A380-The major passenger airliner in the world- since 2001. Samsung Techwin of Korea is a revenue-sharing participant in the Boeing’s 787 Dreamliner GEnx engine program. In 2010, Samsung announced a 10-year growth strategy centered around five businesses. One of these businesses was to be focused on biopharmaceuticals, to which the Company has dedicated ₩2.1 trillion.
In December 2011, Samsung Electronics sold its hard disk drive (HDD) business to Seagate. In the first quarter of 2012, Samsung Electronics converted 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 lucrative chip.
The conversion should start in early 2013 with construction 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 choice 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 bar 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. On September 4, 2012, Samsung announced it plans to inspect all of its Chinese suppliers for possible violations of industry rules. The company said it will carry out audits of 250 Chinese companies that are its select suppliers to see if children under the age of 16 are being used in their factories.
The Samsung PhilosophySamsung has a simple business philosophy: to devote its talent and technology in order to creating superior products and services that contribute to a better global society. Every day, Samsung’s people bring this philosophy to life. Its leaders explore for the brightest talent from around the world, and give them the resources they need to be the best at what they do. The effect is that all of its products—from memory chips that help businesses store vital knowledge to mobile phones that connect people across continents— have the control to improve lives. Samsung Values
The company believes that living by strong values is the key to good business. At Samsung, a rigorous code of conduct and these core values are at the heart of every decision it makes. People: Quite simply, a company is its people. At Samsung, is appropriated to giving its people a wealth of probabilities to reach its full potential. Excellence:
Everything it does at Samsung is driven by an intractable passion for excellence and an unfaltering commitment to develop the best products and services on the market. Change: In today’s fast-paced global economy, change is constant and introduction is critical to a company’s survival. As we have done for over 70 years, Samsung set our sights on the future, anticipating market needs and demands so it can steer the company toward long-term success.
Integrity:Operating in an ethical way is the foundation of the company. Everything it does is guided by a moral compass that ensures fairness, respect for all stakeholders and complete transparency. Co-prosperity:
A business cannot be successful unless it creates prosperity and opportunity for others. Samsung is dedicated to being a socially and environmentally responsible corporate citizen in every community where it operates around the globe. Vision 2020
The new vision reflects Samsung Electronics’ commitment to inspiring its communities by leveraging Samsung’s three key strengths: “New Technology,” “Innovative Products,” and “Creative Solutions” Through these efforts, Samsung anticipate to contribute to a better world and a richer experience for all. As part of this vision, Samsung has mapped out a specific plan of reaching $400 billion in revenue and becoming one of the world’s top five brands by 2020.
To this end, Samsung has also established three strategic approaches in its management: “Creativity,” “Partnership,” and “Talent.” Samsung is excited about the future. As we build on our previous accomplishments, we look forward to exploring new territories, including health, medicine, and biotechnology. Samsung is committed to being a creative leader in new markets and becoming a truly No. 1 business going forward.