This report provides an in-depth analysis of Samsung Group, its subsidiaries, and its significant role in various industries. It examines the company's historical background, current operations, market influence, and key events that have shaped its global presence.
Samsung was founded by Lee Byung-chul in 1938 during Japanese-ruled Korea. The company started as a small trading business in Daegu, with its initial focus on dried-fish, groceries, and noodles. The business saw early success, leading Lee to relocate the headquarters to Seoul in 1947. However, the Korean War forced him to leave Seoul, and he eventually founded a sugar refinery in Busan named Cheil Jedang. In 1954, Lee established Korea's largest woolen mill, Cheil Mojik, in Daegu. By the late 1960s, Samsung diversified into various industries, including food processing, textiles, insurance, securities, and retail, and entered the electronics market with divisions like Samsung Electronics Devices, Samsung Electro-Mechanics, and Samsung Semiconductor & Telecommunications. The company's first electronic product was a black-and-white television set.
Throughout the 1970s and 1980s, Samsung expanded its operations into numerous industries, establishing subsidiaries like Samsung Heavy Industries, Samsung Shipbuilding, and Samsung Precision Company (later Samsung Techwin). The 1970s saw investments in heavy industries, chemicals, and petrochemicals. The 1980s were marked by significant investments in research and development, aiding Samsung's evolution into a technology leader. The company established overseas facilities, such as television assembly plants in Portugal (1982), New York (1984), Tokyo (1985), England (1987), and Austin, Texas (1996). In 1983, Samsung introduced its first personal computer, the SPC-1000, marking its entry into the telecommunications hardware sector. By 1987, the company had merged its various electronics divisions under Samsung Electronics.
Following the death of Lee Byung-chul in 1987, Samsung underwent significant structural changes. The conglomerate was divided into five separate entities: Samsung Group, Shinsegae Group, CJ Group, Hansol Group, and JoongAng Group. Shinsegae focused on retail, CJ on food and entertainment, Hansol on paper and telecommunications, and JoongAng on media. Despite the separations, Samsung Group retained its core businesses and continued to grow. The 1990s saw Samsung consolidate its operations, selling subsidiaries and merging others to concentrate on electronics, engineering, and chemicals. This period also marked Samsung's emergence as a global technology powerhouse, with notable projects like the construction of major skyscrapers, including the Petronas Towers and the Burj Khalifa. Today, Samsung Electronics remains the flagship company within the diverse Samsung conglomerate.
Samsung Electronics offers a diverse range of products encompassing consumer electronics, information technology, and mobile communications. Their product portfolio includes televisions, refrigerators, washing machines, air conditioners, medical devices, printers, monitors, computers, network systems, and digital cameras. Additionally, Samsung manufactures LCD and LED panels, mobile phones, smartphones, tablets, and related accessories.
Samsung Electronics has a significant global presence in multiple regions, including the Americas, Europe, Africa, the Middle East, and Asia-Pacific. The company's expansive reach allows it to provide solutions to various sectors such as retail, hospitality, healthcare institutions, finance, education, transportation, and government.
Samsung Electronics invests heavily in research and development, which has been crucial in establishing the company as a leader in the global electronics industry. Significant investments include the development of LCD and LED panels, mobile phone technologies, and semiconductors. The company's R&D initiatives have enabled it to launch groundbreaking products and achieve technological advancements.
In 2022, Samsung Electronics reported a revenue of $198.4 billion, marking a 14.3% decrease compared to 2021. The company experienced a significant decline in net income, down by 73.6% from the previous year. Despite these challenges, Samsung Electronics maintained a substantial market capitalization of $377.2 billion.
Samsung Heavy Industries is a shipbuilding and engineering company headquartered in Seoul, 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. By 2011, Samsung Heavy Industries had achieved total revenues of 13,358.6 billion won and was the world's second-largest shipbuilder by revenues, following Hyundai Heavy Industries.
Founded in January 1969 and headquartered in Seoul, Samsung Engineering initially specialized in the construction of oil refining plants. Its principal activities have expanded to include upstream oil and gas facilities, petrochemical plants, gas plants, steel making plants, power plants, and water treatment facilities. In 2011, Samsung Engineering achieved total revenues of 9,298.2 billion won, making it one of the notable subsidiaries in Samsung's portfolio. It is listed on the Korea Exchange stock market under the number 02803450.
Samsung C&T Corporation evolved from a trading firm established in the early stages of the conglomerate's history. The company eventually expanded into construction and is now recognized as a prominent player in the global construction industry. It is the 36th largest construction company in the world by revenue. The company is listed on the Korea Exchange stock market with the number 000830.
Samsung SDI is primarily engaged in the production of lithium-ion batteries, including those used for electric vehicles like the BMW i3. The company also produced CRTs and VFD displays until 2012. Samsung SDI has continued to innovate, adopting the '21700' cell format in August 2015 and plans to convert its factory in Göd, Hungary to supply 50,000 cars per year. Samsung SDI is listed on the Korea Exchange stock market under the number 006400.
Founded in March 1985, Samsung SDS is a multinational IT service company that specializes in the deployment of IT systems including ERP, IT infrastructure, IT consulting, IT outsourcing, and data center operations. It is Korea's largest IT service company, achieving total revenues of 6,105.9 billion won in 2012. The company is listed on the Korea Exchange stock market under the number 018260.
Samsung Group is a crucial driver in South Korea's economic landscape, contributing significantly to the country's GDP and exports. Samsung's affiliated companies generate about one fifth of South Korea's total exports. In 2022, Samsung's revenue accounted for 22.4% of South Korea's $1.67 trillion GDP. This substantial economic footprint has established Samsung as a pivotal player in South Korea’s 'Miracle on the Han River,' a term used to describe the rapid economic growth and modernization of the country following the Korean War.
Samsung’s influence extends beyond the economy into South Korea’s political and cultural spheres. Often portrayed as more powerful than the President of South Korea, Samsung is perceived by many to have significant control over various aspects of the nation’s governance. Critics argue that Samsung has a hand in managing the legal system, press, academic circles, and bureaucracy to favor its interests. For example, in a Washington Post article published on December 9, 2012, it was reported that Samsung’s chairman might be seen as wielding more power than the country's president. This level of influence has spurred public and political debates about the chaebol’s domination over the South Korean landscape.
Despite its significant contributions, Samsung has faced numerous criticisms and legal challenges. Allegations of monopolistic practices and corruption have marred its reputation. Critics claim that Samsung's dominant market position stifles smaller businesses and limits consumer choices. The conglomerate has also been accused of price-fixing and bullying investigators. For instance, Lee Jung-hee, a South Korean presidential candidate, openly criticized Samsung’s pervasive grip over governmental operations. Additionally, the company has had its share of high-profile legal battles, such as fines for participating in a price cartel for DRAMs between 1998 and 2002, and accusations of bribery involving its de facto leader Lee Jae-yong.
Samsung has engaged in numerous acquisitions and partnerships to cement its status as a global conglomerate. In the 1980s, Samsung established several electronics-related divisions, including Samsung Electronics Devices and Samsung Electro-Mechanics. A notable acquisition was in 1980, with the purchase of the Gumi-based Hanguk Jeonja Tongsin, marking Samsung's entry into telecommunications hardware. Another significant partnership occurred in 2006 when Samsung and Sony formed a joint venture, S-LCD, to ensure a stable supply of LCD panels; Samsung later acquired Sony's shares in 2011. The acquisition of NeuroLogica in 2013 and SmartThings in 2014 underscores Samsung's commitment to expanding its footprint in medical technology and home automation, respectively.
Samsung has faced various legal battles and controversies over the years. In 1987, the United States International Trade Commission found Samsung guilty of selling computer chips without proper licensing from Texas Instruments Inc. On August 24, 2012, Samsung was ordered to pay Apple $1.05 billion in damages for violating smartphone technology patents, although this amount was less than Apple's requested $2.5 billion. Samsung has also been involved in a series of legal issues in South Korea, including allegations of bribery against Lee Kun-hee and Lee Jae-yong. In February 2017, Lee Jae-yong was arrested for bribery and embezzlement, which led to a high-profile trial.
Samsung has been at the forefront of technological innovations, particularly in the electronics and semiconductor industries. In the late 1960s, the company ventured into electronics, launching its first product, a black-and-white television set. Samsung became the world's largest producer of memory chips in 1992 and the second-largest chipmaker after Intel by 2011. The company introduced its first personal computer, the SPC-1000, in 1982. In the contemporary era, the Galaxy Note series and other mobile devices have solidified Samsung's presence in the global market. The inauguration of the world's largest mobile manufacturing facility in Noida, India, in 2018, highlights Samsung's ongoing commitment to innovation and expansion.
Samsung Group is the largest conglomerate in South Korea, founded in 1938 by Lee Byung-chul. It has diversified into areas such as electronics, shipbuilding, construction, and more.
Samsung Electronics, a subsidiary of Samsung Group, is a leading manufacturer of consumer electronics and information technology. Its product portfolio includes smartphones, televisions, and semiconductors.
Founder of Samsung Group, who established the company in 1938 as a grocery trading store. He led the diversification and expansion of the company into various industries.
A subsidiary of Samsung Group, focusing on shipbuilding and engineering, known for constructing some of the largest ships and offshore facilities in the world.
Samsung SDS, founded in 1985, is Korea's largest IT service company, specializing in ERP, IT infrastructure, IT consulting, IT outsourcing, and data center operations.
A subsidiary of Samsung Group, known for manufacturing lithium-ion batteries for electric vehicles and other applications. It has also produced CRTs and VFD displays.
The former chairman of Samsung Group, who played a significant role in transforming Samsung into a global powerhouse in various industries.
A construction arm of Samsung Group, involved in constructing landmark projects such as the Burj Khalifa and the Petronas Towers.
The report provides a comprehensive look at Samsung's extensive impact on the global stage, encompassing diverse industries and significant technological advancements. Despite various legal and ethical challenges, Samsung continues to be a major player in both the South Korean economy and the global market.