BackgroundBackgroundSamsung Group is South Korea's largest company and Samsung Group is South Korea's largest company and

exporterexporterand the world's second largest and the world's second largest conglomerateconglomerate, only , only

behind the behind the U.S.U.S. based based General ElectricGeneral Electric..[6][6] Currently Currently helmed by helmed by Lee SooLee Soo

binbin, CEO of , CEO of Samsung Life InsuranceSamsung Life Insurance, it has been run by , it has been run by generations of one of the world's wealthiest families, generations of one of the world's wealthiest families,

formerly by chairman formerly by chairman Lee Kun-HeeLee Kun-Hee, the third son of the , the third son of the founder, founder, Lee Byung-ChulLee Byung-Chul. Samsung Group is recognized . Samsung Group is recognized as the most prestigious firm in South Korea, attracting as the most prestigious firm in South Korea, attracting

many of the country's most intelligent and talented many of the country's most intelligent and talented pupils, with 25% of its employees having a pupils, with 25% of its employees having a PhDPhD degree degree

or equivalent. Samsung Group also owns the or equivalent. Samsung Group also owns the Sungkyunkwan UniversitySungkyunkwan University, a major private university in , a major private university in

South Korea, with many of its graduates being South Korea, with many of its graduates being employed by Samsung Group affiliates. South Korean employed by Samsung Group affiliates. South Korean

Samsung employees are also highly loyal to the Samsung employees are also highly loyal to the company, working for very long hours with no company, working for very long hours with no

weekends or holidays until they retire. weekends or holidays until they retire.

Many major South Korean corporations such as Many major South Korean corporations such as CJ CorporationCJ Corporation, , Hansol GroupHansol Group, , Shinsegae GroupShinsegae Group and and Joong-Ang IlboJoong-Ang Ilbo daily newspaper were daily newspaper were previously part of the Samsung Group, split apart previously part of the Samsung Group, split apart by the government in order to reduce its power. by the government in order to reduce its power. Many leading companies in South Korea, notably Many leading companies in South Korea, notably iriveririver, the No.1 , the No.1 MP3 PlayerMP3 Player maker in South Korea maker in South Korea and and NaverNaver, the No.1 , the No.1 Search EngineSearch Engine portal in South portal in South Korea, were established by ex-Samsung Korea, were established by ex-Samsung employees. A large number of South Korean employees. A large number of South Korean firms, particularly those in the firms, particularly those in the electronicselectronics industry, are dependent on Samsung for the industry, are dependent on Samsung for the supply of vital components or raw materials such supply of vital components or raw materials such as semiconductor chips or LCD panels. as semiconductor chips or LCD panels. Consequently, Samsung is able to artificially Consequently, Samsung is able to artificially moderate prices and has been criticised for moderate prices and has been criticised for handicapping other rivals, leading to handicapping other rivals, leading to bankruptcybankruptcy of mid to small sized businesses as they cannot of mid to small sized businesses as they cannot compete with Samsung. As a result, many have compete with Samsung. As a result, many have been taken over by Samsung Group, leading to a been taken over by Samsung Group, leading to a complete dominance by Samsung Group in many complete dominance by Samsung Group in many industries.industries.

Samsung Group accounts for more than 20% of Samsung Group accounts for more than 20% of South Korea's total exports[South Korea's total exports[citation neededcitation needed], with ], with strong government support, including the ability to strong government support, including the ability to access unlimited amount of funds from major banks access unlimited amount of funds from major banks in South Korea. In many domestic industries, in South Korea. In many domestic industries, Samsung Group is the sole monopoly dominating a Samsung Group is the sole monopoly dominating a single market, its revenue as large as some single market, its revenue as large as some countries' total countries' total GDPGDP. In 2006, Samsung Group would . In 2006, Samsung Group would have been the 34th largest economy in the world if have been the 34th largest economy in the world if ranked, larger than that of ranked, larger than that of ArgentinaArgentina..[7][7] The The company owns or has taken over so many mid to company owns or has taken over so many mid to small sized businesses that it is often called a small sized businesses that it is often called a 'colonial empire' or 'hungry dinosaur'. Samsung is 'colonial empire' or 'hungry dinosaur'. Samsung is known as "Another Family" (known as "Another Family" (KoreanKorean: : 또 하나의 가족또 하나의 가족 ) in ) in South Korea and many South Korea and many KoreansKoreans are highly loyal to are highly loyal to the Samsung brand, considering it a symbol of the Samsung brand, considering it a symbol of national pridenational pride. The company has a powerful . The company has a powerful influence on the country's economic development, influence on the country's economic development, politics, media and culture, being a major driving politics, media and culture, being a major driving force behind the force behind the Miracle on the Han RiverMiracle on the Han River; many ; many businesses today use its international success as a businesses today use its international success as a role model.role model.

HistoryHistory1930s - 1980s1930s - 1980s• 19381938: : Lee Byung-ChulLee Byung-Chul founded his small founded his small

business as 'Samsung Store' at business as 'Samsung Store' at DaeguDaegu • 19501950: : Lee Byung-ChulLee Byung-Chul founded Samsung founded Samsung

trading company in Seoul (YPM) trading company in Seoul (YPM) • 19531953: Samsung starts : Samsung starts sugarsugar production, which production, which

has since been spun off into the has since been spun off into the CJ CorporationCJ Corporation • 19541954: : Cheil IndustriesCheil Industries founded founded • 19581958: Samsung starts : Samsung starts insuranceinsurance business business • 1963:1963: The first The first ShinsegaeShinsegae department store department store

opens in Seoul opens in Seoul • 19641964: Samsung starts : Samsung starts Tongyang Broadcasting Tongyang Broadcasting

CompanyCompany (TBC), which later merged with (TBC), which later merged with KBSKBS

• 1965:1965: Samsung starts the Samsung starts the Joong-Ang IlboJoong-Ang Ilbo daily daily newspaper, which is no longer affiliated with newspaper, which is no longer affiliated with the company the company

• 1969:1969: Samsung Electronics was founded Samsung Electronics was founded • 1974:1974: Samsung Petrochemical and Heavy Samsung Petrochemical and Heavy

Industries were founded Industries were founded • 1976:1976: The company was awarded an export The company was awarded an export

prize by the government as a part of the prize by the government as a part of the country's development program country's development program

• 1977:1977: As a result of this export prize, Samsung As a result of this export prize, Samsung Construction emerged. In addition, Samsung Construction emerged. In addition, Samsung Shipbuilding is formed Shipbuilding is formed

• 1982:1982: Samsung establishes a professional Samsung establishes a professional baseballbaseball team team

• 1983:1983: Samsung produces its first computer Samsung produces its first computer chipchip: a 64k : a 64k DRAMDRAM chip chip

• 1996:1996: Commercialization of CDMA Commercialization of CDMA Handset/System Handset/System

• 1997:1997: Commercialization of GSM Handset Commercialization of GSM Handset • 2000:2000: Commercialization of World’s 1st Commercialization of World’s 1st

Handset/System - CDMA2000 1X Handset/System - CDMA2000 1X • 2002:2002: Commercialization of World’s 1st Commercialization of World’s 1st

Handset/System - CDMA2000 1X EV-DO Handset/System - CDMA2000 1X EV-DO • 2003:2003: Commercialisation of World's 1st Commercialisation of World's 1st

Silver NanoSilver Nano washing machinewashing machine using using antibacterial silver antibacterial silver nanoparticlesnanoparticles

Lee Byung-ChulLee Byung-Chul founded Samsung in 1938. It founded Samsung in 1938. It started as a small trading company with forty started as a small trading company with forty employees, located in employees, located in SeoulSeoul. The company did . The company did fairly well until the Communist invasion in 1950 fairly well until the Communist invasion in 1950 which caused great damage to his inventories. He which caused great damage to his inventories. He was forced to leave and start over in was forced to leave and start over in SuwonSuwon in in 1951. In just a year, the company’s assets had 1951. In just a year, the company’s assets had grown twentyfold. In 1953, Lee created a sugar grown twentyfold. In 1953, Lee created a sugar refinery—the South Korea’s first manufacturing refinery—the South Korea’s first manufacturing facility after the facility after the Korean WarKorean War. “The company . “The company prospered under Lee’s philosophy of making prospered under Lee’s philosophy of making Samsung the leader in each industry he entered” Samsung the leader in each industry he entered” (Samsung Electronics). The company started (Samsung Electronics). The company started moving into service businesses such as insurance, moving into service businesses such as insurance, securities, and department store. In the early securities, and department store. In the early 1970s, Lee borrowed money from foreign 1970s, Lee borrowed money from foreign companies to begin the mass communication companies to begin the mass communication industry by launching a radio and television industry by launching a radio and television station (Samsung Electronics).station (Samsung Electronics).

South Korean President South Korean President Park Chung-heePark Chung-hee’s ’s regime during the 1960s and 1970s, helped regime during the 1960s and 1970s, helped Samsung Electronics and many other Korean Samsung Electronics and many other Korean firms. Park put great importance in increasing firms. Park put great importance in increasing economic growth and development, and economic growth and development, and assisted large, profitable companies, protecting assisted large, profitable companies, protecting them from competition and aiding financially them from competition and aiding financially as well. His government banned several as well. His government banned several exterior companies selling consumer exterior companies selling consumer electronics in South Korea. “To make up for a electronics in South Korea. “To make up for a lack of technological expertise in South Korea, lack of technological expertise in South Korea, the South Korean government effectively the South Korean government effectively required foreign telecommunications required foreign telecommunications equipment manufacturers to hand over equipment manufacturers to hand over advanced semiconductor technology in return advanced semiconductor technology in return for access to the Korean market” (Samsung for access to the Korean market” (Samsung Electronics). This enormously helped Samsung Electronics). This enormously helped Samsung to manufacture the first Korean dynamic to manufacture the first Korean dynamic random access memory chips. “Furthermore, random access memory chips. “Furthermore, although Samsung Electronics was free to although Samsung Electronics was free to invest in overseas companies, foreign investors invest in overseas companies, foreign investors were forbidden to buy into Samsung” were forbidden to buy into Samsung” (Samsung Electronics). Samsung quickly (Samsung Electronics). Samsung quickly thrived in the domestic market.thrived in the domestic market.

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

In the late 1980s and early 1990s, In the late 1980s and early 1990s, Samsung Electronics invested heavily in Samsung Electronics invested heavily in research and development, constructing research and development, constructing the company as a leader in the global the company as a leader in the global electronics industry. “By the 1980s electronics industry. “By the 1980s Samsung was manufacturing, shipping, Samsung was manufacturing, shipping, and selling a wide range of appliances and and selling a wide range of appliances and electronic products throughout the world” electronic products throughout the world” (Samsung Electronics). In 1982, it built a (Samsung Electronics). In 1982, it built a television assembly plant in Portugal; in television assembly plant in Portugal; in 1984, it built a $25 million plant in New 1984, it built a $25 million plant in New York; and in 1987, it built another $25 York; and in 1987, it built another $25 million facility in million facility in EnglandEngland (Samsung (Samsung Electronics).Electronics).

In 1993 and in order to change the strategy from In 1993 and in order to change the strategy from the imitating cost-leader to the role of a the imitating cost-leader to the role of a differentiator, differentiator, Lee Kun-heeLee Kun-hee, , Lee Byung-chulLee Byung-chul’s ’s successor, sold off ten of Samsung Group's successor, sold off ten of Samsung Group's subsidiaries, downsized the company, and merged subsidiaries, downsized the company, and merged other operations to concentrate on three other operations to concentrate on three industries: electronics, engineering, and chemicals industries: electronics, engineering, and chemicals (Samsung Electronics).(Samsung Electronics).

Samsung became the largest producer of memory Samsung became the largest producer of memory chips in the world in 1992. In 1995, it built its first chips in the world in 1992. In 1995, it built its first liquid-crystal displayliquid-crystal display screen. Ten years later, screen. Ten years later, Samsung grew to be the world's largest Samsung grew to be the world's largest manufacturer of liquid-crystal display panels. manufacturer of liquid-crystal display panels. SonySony, which had not invested in LCDs, contacted , which had not invested in LCDs, contacted Samsung to cooperate. In 2006, Samsung to cooperate. In 2006, S-LCDS-LCD was was established as a joint venture between Samsung established as a joint venture between Samsung and Sony in order to provide a stable supply of and Sony in order to provide a stable supply of LCD panels for both manufacturers. LCD panels for both manufacturers. S-LCDS-LCD is is owned by Samsung and Sony 51% to 49% owned by Samsung and Sony 51% to 49% respectively and operates its factories and respectively and operates its factories and facilities in Tangjung, South Korea.facilities in Tangjung, South Korea.

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

The 1990s saw Samsung rise as an international The 1990s saw Samsung rise as an international corporation. Not only did it acquire a number of corporation. Not only did it acquire a number of businesses abroad, but also began leading the way businesses abroad, but also began leading the way in certain electronic components. in certain electronic components. Samsung's construction branchSamsung's construction branch was awarded a was awarded a contract to build one of the two contract to build one of the two Petronas TowersPetronas Towers in in MalaysiaMalaysia, , Taipei 101Taipei 101 in in TaiwanTaiwan and the and the Burj DubaiBurj Dubai in in United Arab EmiratesUnited Arab Emirates, which is the tallest , which is the tallest structure ever constructed. In 1996, the Samsung structure ever constructed. In 1996, the Samsung Group reacquired the Group reacquired the Sungkyunkwan UniversitySungkyunkwan University foundation.foundation.

Compared to other major Korean companies, Compared to other major Korean companies, Samsung survived the Samsung survived the Asian financial crisisAsian financial crisis of 1997- of 1997-98 relatively unharmed. However, 98 relatively unharmed. However, Samsung MotorSamsung Motor Co, a $5 billion venture was sold to Co, a $5 billion venture was sold to RenaultRenault at a at a significant loss. Most importantly, significant loss. Most importantly, Samsung ElectronicsSamsung Electronics (SEC) was officially spun-off (SEC) was officially spun-off from the Samsung Group and has since come to from the Samsung Group and has since come to dominate the group and the worldwide dominate the group and the worldwide semiconductor business, even surpassing semiconductor business, even surpassing worldwide leader worldwide leader IntelIntel in investments for the 2005 in investments for the 2005 fiscal year. Samsung's fiscal year. Samsung's brand strengthbrand strength has greatly has greatly improved in the last few years.improved in the last few years.

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

Samsung Electronics, which saw record profits Samsung Electronics, which saw record profits and revenue in 2004 and 2005, overtook Sony and revenue in 2004 and 2005, overtook Sony as one of the world's most popular consumer as one of the world's most popular consumer electronics brands, and is now ranked #20 in the electronics brands, and is now ranked #20 in the world overall.world overall.

By late 2005, Samsung had a net worth of By late 2005, Samsung had a net worth of US$77.6 billion.US$77.6 billion.