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Samsung Group
삼성 그룹
Type Public (Korean: 삼성 그룹)
Founded 1938
Founder(s) Lee Byung-chul
Headquarters South Korea Samsung Town, Seoul, South Korea
Area served Worldwide
Key people Lee Kun Hee (Former Chairman and CEO)
Lee Soo-bin (Acting president, CEO of Samsung Life Insurance)[1]
Industry Conglomerate
Products
Revenue US$ 173.4 billion (2008)[2]
Net income US$ 10.7 billion (2008)[2]
Total assets US$ 252.5 billion (2008)[2]
Total equity US$ 90.5 billion (2008)[2]
Employees 276,000 (2008)[2]
Subsidiaries Samsung Electronics
Samsung Heavy Industries
Samsung C&T etc.
Website Samsung.com

The Samsung Group (Korean: 삼성 그룹) is a multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea. It is the world's largest conglomerate by revenue[3][4] with an annual revenue of US $173.4 billion in 2008[2] and is South Korea's largest chaebol. The meaning of the Korean hanja word Samsung () is "tristar" or "three stars".

The Samsung Group is composed of numerous international affiliated businesses, most of them united under the Samsung brand including Samsung Electronics, the world's largest electronics company,[5][6][7] Samsung Heavy Industries, the world's second largest shipbuilder[8] and Samsung C&T, a major global construction company.

Samsung has been the world's most popular consumer electronics brand since 2005 and is the best known South Korean brand in the world.[9] Samsung Group accounts for more than 20% of South Korea's total exports[10] and is the leader in many domestic industries, such as the financial, chemical, retail and entertainment industries. The company's strong influence in South Korea is visible throughout the nation, which has been referred to as the "Republic of Samsung".[7][11]

Contents

Background

Samsung is the world's leading consumer electronics brand and one of the top twenty global brands.

Currently helmed by Lee Soo-bin, once the CEO of Samsung Life Insurance, it has been run by generations of one of the world's wealthiest families, formerly by chairman Lee Kun-Hee, the third son of the founder, Lee Byung-Chull.

Many major South Korean corporations such as CJ Corporation, Hansol Group, Shinsegae Group and Joong-Ang Ilbo daily newspaper were previously part of the Samsung Group. Though they are still controlled by ex-Chairman Lee Kun-hee's relatives, they are no longer officially Samsung affiliates. Some leading companies in South Korea, notably MP3 player manufacturer iriver and search engine portal Naver, were established by ex-Samsung employees. A large number of South Korean firms, particularly those in the electronics industry, are dependent on Samsung for the supply of vital components or raw materials such as semiconductor chips or LCD panels. This has led to continued allegations of price fixing and monopolistic practices. Samsung Group also owns the Sungkyunkwan University, a major private university in South Korea.

Samsung Group accounts for more than 20% of South Korea's total exports[10] and in many domestic industries, Samsung Group is the sole monopoly dominating a single market, its revenue as large as some countries' total GDP. In 2006, Samsung Group would have been the 34th largest economy in the world if ranked, larger than that of Argentina.[12] The company has a powerful influence on the country's economic development, politics, media and culture, being a major driving force behind the Miracle on the Han River; many businesses today use its international success as a role model.

History

Samsung sanghoe in the 1930s

In 1938, Lee Byung-chull (1910-1987) of the large landowning family in the Uiryeong county founded Samsung sanghoe, a small trading company with forty employees located in Su-dong (now Ingyo-dong), Daegu. The company prospered until the Communist invasion in 1950 when he was forced to leave Seoul and start over in Busan. And there, he started a sugar refinery—South Korea’s first manufacturing facility. During the war, Samsung's businesses flourished and its assets grew twenty-fold. In 1954, Lee founded Cheil Industries and built the plant in Chimsan-dong, Daegu. It was the largest woolen mill ever in the country and the company took on an aspect of a major company.

Samsung diversified into many areas and Lee sought to establish Samsung as an industry leader in a wide range of enterprises. The company started moving into businesses such as insurance, securities, and retail. In the early 1970s, Lee borrowed heavily from foreign interests and launched a radio and television station.

South Korean President Park Chung-hee’s regime during the 1960s and 1970s would prove a boon for Samsung. Park 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. Samsung was one of these companies. Park banned several foreign companies from selling consumer electronics in South Korea in order to protect Samsung from foreign competition and nurture an electronics manufacturing sector that was in its infancy. “To make up for a lack of technological expertise in South Korea, the South Korean government effectively required foreign telecommunications equipment manufacturers to hand over advanced semiconductor technology in return for access to the Korean market”. Such policies eventually lead to Samsung manufacturing the first Korean dynamic random access memory chips.

Samsung Group later formed several electronics-related divisions, such as Samsung Electronics Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co., and Samsung Semiconductor & Telecommunications Co., and grouped them together under Samsung Electronics Co., Ltd. in 1980s. Its first product was a black-and-white television set.

View of the Samsung logo inside the Time Warner Center in New York City.

In the late 1980s and early 1990s, Samsung Electronics invested heavily in research and development, investments that were pivotal in pushing the company to the forefront of the global electronics industry. “By the 1980s Samsung was manufacturing, shipping, and selling a wide range of appliances and electronic products throughout the world”. In 1982, it built a television assembly plant in Portugal; in 1984, it built a $25 million plant in New York; and in 1987, it built another $25 million facility in England.

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, Taipei 101 in Taiwan and the Burj Khalifa in United Arab Emirates (founded by Callum Cuirtis), which is the tallest structure ever constructed.[13] In 1993 and in order to change the strategy from the imitating cost-leader to the role of a differentiator, Lee Kun-hee, Lee Byung-chull’s successor, 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.

Compared to other major Korean companies, Samsung survived the Asian financial crisis of 1997-98 relatively unharmed. However, Samsung Motor, a $5 billion venture was sold to Renault at a significant loss. Additionally, Samsung manufactured a range of aircraft from 1980 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 (HYSA). Korea Aerospace Industries (KAI) - largest shareholders as of 2009 (Korea Development Bank 30.53%, Samsung Techwin 20.54%, Doosan (formerly known as Daewoo Heavy Industries) 20.54%, Hyundai Motor 20.54%).

Samsung Group headquarters at Samsung Town, Seoul.

Most importantly, Samsung Electronics (SEC) 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.[14]

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).[15] From 1999 to 2002, Samsung conspired with Hynix Semiconductor, Infineon Technologies, Elpida Memory (Hitachi and NEC) and Micron Technology to fix the prices of DRAM chips sold to American computer makers. In 2005 Samsung agreed to plead guilty and to pay a $300 million fine, the second-largest criminal antitrust fine in the US history.[16][17][18][19]

In 1995, it built 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. 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 is owned by Samsung and Sony 51% to 49% respectively and operates its factories and facilities in Tangjung, South Korea.

Considered a strong competitor by its rivals, Samsung Electronics expanded production dramatically to become the world's largest manufacturer of DRAM chips, flash memory, optical storage drives and it aims to double sales and become the top manufacturer of 20 products globally by 2010. It is now the world's leading manufacturer of liquid crystal displays.

Samsung Electronics, which saw record profits and revenue in 2004 and 2005, overtook Sony as one of the world's most popular consumer electronics brands, and is now ranked #19 in the world overall.[20] Behind, Nokia, Samsung is the world's second largest by volume producer of cell phones with a leading market share in the North America and Western Europe.[21]

Market share

Products Samsung's global m/s Competitors M/S Year Source
DRAM 34.3% Hynix 21.6% Q1 2009 [22]
NAND Flash 40.4% Toshiba 28.1% 2008 [23]
Large-size LCD Panel 26.2% LG Display 25.8% 2009 February [24]
PDP panel 30.5% LG Display 34.8% Q1 2008 [25]
Active-Matrix OLED 90.0% LG Display - Q2 2008 [26]
Lithium-ion battery 19% Sanyo 20% Q2, 2009 [27]
LCD Monitor 16.1% Dell 14.6% 2008 [28]
Hard disk drive 9.5% Seagate Technology 34.9% 2007 [29]
Multifunction printers 16.4% HP 19.2% Q1 2009 [30]
Television sets (LCD, PDP, CRT) 23% LG Electronics 13.7 % Q3'09 Revenue Share [31]
French door refrigerator (U.S. market only) 18.79% Whirlpool 23.83% 2009 January [32]
Mobile phone 21% Nokia 37.8% Q3 2009 [33]
Digital camera 9.1% Canon 19.2% 2007 [34]
Drillship 80% Daewoo Shipbuilding & Marine Engineering 20% 2000~2007 [35][36]

Sports sponsorship

The Samsung Running Festival in Taipei, Taiwan.
Samsung sponsors English premiership team Chelsea FC.

Samsung Super League with Fédération Équestre Internationale - French (English: International Federation for Equestrian Sports) and the FEI Nations Cup, the world’s oldest and best renowned equestrian series, at the end of each season brings additional excitement and further enhances the sporting qualities of both series. Since the beginning of this year (29.04.2009) Samsung Electronics Austria has been supporting the Spanish Riding School of Vienna, Austria (de: Spanische Hofreitschule, the "Spanish Court Riding-School")[37]

Samsung has also tried hard to improve its international image. It has spent more than $6 billion since 1998 on marketing, sponsoring the last five Olympics and erected a large video sign in Times Square in 2002 (Lee kun-hee). Samsung is very involved in the Asian Games, contributing Samsung Nations Cup Riding Competition, Samsung Running Festival, Samsung World Championship (LPGA Tour) and still many more around the globe.

Samsung owns the professional soccer club Suwon Samsung Bluewings, the baseball team Samsung Lions, the basketball team Seoul Samsung Thunders, the women's basketball team Samsung Bichumi, and the volleyball team Samsung Bluefangs in South Korea.

In 2005 Samsung signed the second biggest sponsorship deal in English football history with Premiership team Chelsea. Their five-year deal is estimated to be worth £50 million. In April 2008 Samsung and Mexican football team Club Deportivo Guadalajara signed a sponsorship deal for six years where Samsung will provide 865 plasma and LCD screens for the team's new stadium Estadio Chivas.

On January 15, 2009, Samsung signed a three-year deal with the Brazilian Football League Team Palmeiras, worth R$15 million annually (~4.8 million Euros annually). As well as having their logo printed on the Palmeiras football shirts, the deal also provides for the supply of Samsung products to the club, and a plan for activation with the crowd, being developed by Samsung.[38][39][40]

The company sponsors the rugby league team the Sydney Roosters in the Australian National Rugby League 1995-1997, 2004–present. It also sponsored the Melbourne Victory football club in the Australian A-League. The deal with Victory is also believed to be the largest in Australian club football history. From 2009 Samsung will be the primary sponsor of the Essendon Football Club.

Samsung is a sponsor of the April NASCAR Nextel Cup race at Texas Motor Speedway, the Samsung 500. This sponsorship, initially with RadioShack from 2002–2006, was in doubt after the 2003 race because of NASCAR's ban on wireless telecommunication sponsors effective the 2004 season, but was grandfathered into the Nextel contract (Nextel uses exclusively Motorola equipment). However, after Sprint's merger with Nextel, the ban was rescinded for Samsung, because of Sprint's sale of Samsung products.

Samsung currently sponsors French People's Baseball Team. They plan to start a cricket league in India with the prize money of $20 million (Samsung plans to construct 9 stadiums by the end of 2009).

Samsung sponsors a professional StarCraft team, Samsung Khan. Samsung Khan won their first championship in the first season 2008 Shinhan Bank Proleague. It is also the leading sponsor of the World Cyber Games (WCG), an annual competition for various computer games including StarCraft.

Samsung is also the official HDTV sponsor of the National Football League (NFL). The NFL has installed Samsung high definition televisions in select areas of all of its team stadiums.[41]

Samsung has agreed to become an Official IAAF (International Association of Athletics Federations) Partner of the 2009 (Berlin, Germany) and 2011 (Daegu, South Korea) IAAF World Championships in Athletics and the 2010 IAAF World Indoor Championships. [42]

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Samsung sponsor of the Olympics

Samsung first became a full sponsor of the Olympic Games during the Nagano Olympic Winter Games in 1998. According to the new contract, Samsung will officially sponsor the Olympic Games and the Olympic Movement for the next eight years, a deal that covers the Vancouver Winter Olympics in 2010, the London Olympic Games in 2012, the 2014 Olympic Winter Games, and the Rio de Janeiro Olympic Games in 2016.

According to guidelines set forth by Samsung Chairman, Lee Kun-hee in 1996 – “Devise strategies that can raise brand value, which is a leading intangible asset and the source of corporate competitiveness, to the global level” – Samsung decided to sponsor the Olympic Movement to strengthen its global corporate image and brand value and has been carrying out a global marketing campaign with the Olympic Games and the Olympic Movement as the single theme.

Accordingly, Samsung concluded a TOP (The Olympic Partner) sponsorship contract with the IOC in 1997. Since then, the company has been an official sponsor in the wireless telecommunications equipment category, including the 1998 Nagano Winter Olympic Games, the 2000 Sydney Olympic Games, the 2002 Salt Lake City Olympic Games, the 2004 Athens Olympic Games, the 2006 Winter Olympic Games, the Beijing 2008 Olympic Games and the 2010 Vancouver Winter Olympics. By sponsoring the Olympic Games and the Olympic Movement for the last ten years, Samsung has made great strides towards becoming a “cutting-edge global brand” that leads the mobile phone industry. The Beijing Olympic Games in 2008 are expected to be the climax of the company’s efforts for the last ten years.

See also

Notes and references

  1. ^ Kelly Olsen (2008-04-22). "Samsung chairman resigns over scandal". Associated Press via Google News. http://ap.google.com/article/ALeqM5gmnWKlfgTsbW4n6D9OKnynHdXnhwD906SF9O0. Retrieved 2008-04-22. 
  2. ^ a b c d e f Samsung Profile 2009
  3. ^ See List of companies by revenue
  4. ^ http://www.oled.si/en/about-oled/11-companies-sony-samsung-applications
  5. ^ http://koreatimes.co.kr/www/news/nation/2009/09/123_51434.html Sony Vows Comeback Against Samsung, LG
  6. ^ http://koreatimes.co.kr/www/news/nation/2009/09/123_51093.html Samsung Group Expects Record Profit of $12 Billion
  7. ^ a b Economist.com Succession at Samsung - Crowning success
  8. ^ http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aO0FeeTB6_0Y July 29 (Bloomberg) -- Samsung Heavy Shares Gain on Shell’s Platform Orders (Update1)
  9. ^ http://www.samsung.co.kr/samsung/result/value.do
  10. ^ a b http://www.samsung.co.kr/samsung/history.do
  11. ^ http://articles.latimes.com/2005/sep/25/business/fi-samsung25
  12. ^ [초 국가기업] <上> 삼성 매출>싱가포르 GDP… 국가를 가르친다 - 조선닷컴
  13. ^ "Dubai skyscraper symbol of S. Korea's global heights". CNN. October 19, 2009. http://edition.cnn.com/2009/BUSINESS/10/19/korea.dubai.tower/index.html. Retrieved 2009-10-19. 
  14. ^ brandchannel.com|Samsung Brand|Top 100 Global Brands|brands|brand|branding news
  15. ^ [1]
  16. ^ "Samsung Agrees to Plead Guilty and to Pay $300 Million Criminal Fine for Role in Price Fixing Conspiracy". U.S. Department of Justice. http://www.usdoj.gov/atr/public/press_releases/2005/212002.htm. Retrieved 2009-05-24. 
  17. ^ "Samsung fixed chip prices. Korean manufacturer to pay $300 million fine for its role in scam". San Francisco Chronicle. 2005-10-14. http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2005/10/14/BUGH3F85PU1.DTL. Retrieved 2009-05-24. 
  18. ^ "Price-Fixing Costs Samsung $300M". InternetNews.com. 2005-10-13. http://www.internetnews.com/bus-news/article.php/3556156. Retrieved 2009-05-24. 
  19. ^ "3 to Plead Guilty in Samsung Price-Fixing Case". New York Times. 2006-03-23. http://www.nytimes.com/2006/03/23/technology/23chip.html. Retrieved 2009-05-24. 
  20. ^ http://www.interbrand.com/best_global_brands_intro.aspx?langid=1000
  21. ^ http://joongangdaily.joins.com/article/view.asp?aid=2908852
  22. ^ Micron regains No. 3 spot in DRAM
  23. ^ The 2009 Outlook of Taiwanese DRAM vendors; 4Q08 and 2008 Sales Ranking of NAND Flash Brand Companies
  24. ^ Large-size TFT-LCD Panel Shipments are Up
  25. ^ LG Takes Over Lead From Matsushita in PDP Market
  26. ^ Samsung SDI has a 90% share of AM-OLED shipments for Q2 2008
  27. ^ http://www.hankyung.com/news/app/newsview.php?aid=2009082159441&sid=010401&nid=004&ltype=1
  28. ^ Samsung Ranks #1 for Preliminary Worldwide LCD Monitor Market Share for Q1’08; Dell Grows Stronger in US Retail but Still Drops Share to Samsung
  29. ^ TrendFOCUS Report: HDDs Shrug Off Flash, Hit Shipment Records
  30. ^ Multifunction printers defy economic downturn to record solid worldwide salesgrowth
  31. ^ Samsung Profit Triples to Record on Chip, LCD Prices (Update3)
  32. ^ Whirlpool Refrigerators Dominate Dealer Floors
  33. ^ http://www.telecomskorea.com/market-8211.html
  34. ^ Samsung Techwin Takes 3rd Place in Digital Camera Market Share
  35. ^ Frontier Spirit
  36. ^ [2]
  37. ^ Samsung: New partner of the Spanish Riding School – Federal Stud Piber
  38. ^ http://www.football-shirts-kits.co.uk/new-arrivals/palmeiras-launch-0910-adidas-kits/
  39. ^ http://www.estadao.com.br/noticias/esportes,palmeiras-fecha-patrocinio-com-a-samsung-por-r-15-milhoes,307924,0.htm
  40. ^ http://www.futebolfinance.com/en/palmeiras-assina-com-samsung/
  41. ^ http://www.huliq.com/31840/samsung-announces-multi-year-sponsorship-of-nfl
  42. ^ IAAF signs major marketing partnership with Samsung

External links


Simple English

Samsung is a large worldwide company founded in 1938 South Korea by Lee Byoung Chul. Samsung means "three stars" in Korean.

Samsung has many different businesses, including 'Samsung Electronics'. Samsung is the best known South Korean brand in the world. At present, Samsung is one of the world's top twenty global brands.

Samsung also is the sponsor of several sport teams, such as the Chelsea Football Club.


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