1.1. Background The Samsung Group was founded by Byung-Chull Lee in 1938, in Taegu, Korea, as an exporter of dried fish, vegetables and fruits. Byung later established flour mills under the name Samsung, which means three stars in Korean language. He also produced confectionery machines in this period. In 1951, Samsung Moolsan, a holding company, was established which later The building of Samsung Sanghoe in Daegu in 1930s
became Samsung Corp. in 1953, Cheil Sugar Manufacturing Co. was set up, which later became an independent company. In
1958, Samsung acquired Ankuk Fire and Marine Insurance (later renamed as Samsung Fire and Marine Insurance) and DongBang Life Insurance in 1963 which was later renamed as Samsung Life Insurance. In 1966, the Group founded Joong-Ang Development, an entertainment theme parks and services company, which was later renamed as Samsung Everland. In 1969, Samsung Electronics Manufacturing Co. (SEMC) was incorporated. In the 1970s, the Samsung Group forayed into the shipbuilding, chemical and petrochemical industries. In 1972, Samsung Electronics started to make black-and-white television sets for domestic and Original Equipment Manufacturer (OEM) markets in its factory in Seoul. In 1974, the Group acquired a 50% stake in Korea Semiconductor Co. a joint venture between Korean Engineering & Manufacturing Co. and Integrated Circuit International. SEMC started exporting its products in the 1970s. In 1978, the Group’s electronics exports crossed the 100 billion won mark. In February 1984, SEMC was renamed as Samsung Electronics Co. Ltd. In 1980, Samsung acquired Korea Telecommunications and merged it with Korea Semiconductor, forming Samsung Semiconductor and Telecommunications, which then merged with SEC in 1988. In mid 80s, the small design was divided into three product areas – domestic appliances, telecommunications and computers serving an engineering driven culture in Suwon. When Byung-Chull Lee passed away in November 1987, his son, Kyun-Hee Lee, became Samsung’s chairman. In 1990, an industrial design department was established under Kook-Hyun Chung, who had joined the company in 1977 as an industrial designer. In 1995, Samsung began to mass-produce LCD Page | 5
displays for both computers and TV sets and grew to be the world’s largest manufacturer of liquidcrystal display panels after a decade. By 2005, Samsung overtook Sony as one of the world’s most popular consumer electronic brands and now holds a position of 19 in the world rank. Samsung is considered to be the second largest by volume producer of cell phones after Nokia with a leading market share in the North America and Western Europe.
1.2. Company Profile Samsung is the World’s largest multinational conglomerate corporation founded in 1938 by Lee ByungChul in Samsung Town, Seoul, South Korea. It has been the world’s most popular consumer electronic brand since 2005 and is best known South Korean brand in the world. Samsung is an ethical business as a digital leader with a responsible global citizen and a multi-faceted family of companies. At Samsung Group and Samsung Electronics, the products, people and approach to business are held to only the highest standards so that they can more effectively contribute to a better world. The Samsung Group is composed of numerous international affiliated businesses united under the Samsung Brand including Samsung Electronics, Samsung Heavy Industries, Samsung C&T and Samsung Life Insurance. These businesses have always been able to hold a position in the world’s top business ranking providing the most powerful revenue and market share worldwide. Samsung Electronics is the sole monopoly dominating a single market in Korea and now around the world for its fastest design based products. The company has a powerful influence on the country’s economic development, politics, media and culture, being a major driving force with a total of 173,965 employees till June 30 2010...