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Samsung Group (; , informally Samsung) is a headquartered in , . It comprises numerous subsidiaries and affiliated businesses, most of them united under the Samsung brand, and is the largest South Korean .

Notable Samsung industrial subsidiaries include (the ), Economist.com Succession at Samsung – Crowning success (the world's second-largest measured by 2010 revenues), and and (respectively the world's 35th- and 72nd-largest construction companies). Other notable subsidiaries include (the world's 14th-largest insurance company), (the oldest in South Korea) and (the world's 19th-largest advertising agency measured by 2010 revenues).

Samsung produces around a fifth of South Korea's total exports and its revenues are larger than many countries' ; in 2006, it would have been the world's 35th-largest economy. The company has a powerful influence on South Korea's economic development, politics, media and culture, and has been a major driving force behind the "".


Name
According to the founder of Samsung Group, the meaning of the word Samsung () is "tristar" or "three stars". The word "three" represents something "big, numerous and powerful"; the "stars" mean .


History

1938 to 1970
In 1938, (1910–1987) of a large landowning family in the county came to the nearby city and founded Samsung Sanghoe (삼성상회), a small trading company with forty employees located in Su-dong (now Ingyo-dong). It dealt in groceries produced in and around the city and produced its own noodles. The company prospered and Lee moved its head office to Seoul in 1947. When the broke out, however, he was forced to leave Seoul and started a sugar refinery in as a name of . After the war, in 1954, Lee founded 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, moving into businesses such as insurance, securities, and retail. Lee 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.

In 1948, Cho Hong-jai (the Hyosung group’s founder) jointly invested in a new company called Samsung Mulsan Gongsa (삼성물산공사), or the Samsung Trading Corporation, with the Samsung Group founder Lee Byung-chull. The trading firm grew to become the present-day Samsung C&T Corporation. But after some years Cho and Lee parted ways due to some differences in management between the two men. He wanted to get up to a 30% group share. After settlement, Samsung Group was separated into Samsung Group and Group, ...etc.

In the late 1960s, Samsung Group entered into the electronics industry. 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 . Its first product was a black-and-white television set.


1970 to 1990
In 1980, Samsung acquired the -based Hanguk Jeonja Tongsin and entered the telecommunications hardware industry. Its early products were switchboards. The facility were developed into the telephone and fax manufacturing systems and became the centre of Samsung's mobile phone manufacturing. They have produced over 800 million mobile phones to date. Gumisamsung.com The company grouped them together under Samsung Electronics Co., Ltd. in the 1980s.

After the founder's death in 1987, Samsung Group was separated 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). Today these separated groups are independent and they are not part of or connected to the Samsung Group. One Hansol Group representative said, "Only people ignorant of the laws governing the business world could believe something so absurd," adding, "When Hansol separated from the Samsung Group in 1991, it severed all payment guarantees and share-holding ties with Samsung affiliates." One Hansol Group source asserted, "Hansol, Shinsegae, and CJ have been under independent management since their respective separations from the Samsung Group." One Shinsegae Department Store executive director said, "Shinsegae has no payment guarantees associated with the Samsung Group." Hansol, Shinsegae Deny Relations with Saehan May 24, 2000. Joongangdaily

In the 1980s, Samsung Electronics began to invest heavily in research and development, investments that were pivotal in pushing the company to the forefront of the global electronics industry. In 1982, it built a television assembly plant in Portugal; in 1984, a plant in New York; in 1985, a plant in Tokyo; in 1987, a facility in ; and another facility in in 1996. In total, Samsung has invested about $5.6 billion in the Austin location – by far the largest foreign investment in and one of the largest single in the . The new investment will bring the total Samsung investment in Austin to more than $9 billion.


1990 to 2000
Samsung started to rise as an international corporation in the 1990s. was awarded a contract to build one of the two in , in and the in . In 1993, 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 foundation.

Samsung became the largest producer of memory chips in the world in 1992, and is the world's second-largest chipmaker after (see ). In 1995, it built its first screen. Ten years later, Samsung grew to be the world's largest manufacturer of liquid-crystal display panels. , which had not invested in large-size , contacted Samsung to cooperate, and, in 2006, was established as a joint venture between Samsung and Sony in order to provide a stable supply of LCD panels for both manufacturers. was owned by Samsung (50% plus 1 share) and Sony (50% minus 1 share) and operates 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 major Korean companies, Samsung survived the relatively unharmed. However, was sold to at a significant loss. , is 80.1 percent owned by and 19.9 percent owned by Samsung. Additionally, Samsung manufactured a range of from the 1980s to 1990s. The company was founded in 1999 as Korea Aerospace Industries (KAI), the result of merger between then three domestic major divisions of Samsung Aerospace, Daewoo Heavy Industries, and Hyundai Space and Aircraft Company. However, Samsung still manufactures and .


2000 to present
Samsung Techwin has been the sole supplier of a combustor module of the engine of the -The largest passenger airliner in the world- since 2001. Samsung Techwin of Korea is a revenue-sharing participant in the 's GEnx engine program.

Samsung Electronics overtook as one of the world's most popular consumer electronics brands in 2004 and 2005, and is now ranked #19 in the world overall. In Q3 of 2011, Samsung has overtaken to become the World's Largest Smartphone maker.

In 2010, Samsung announced a 10-year growth strategy centered around five businesses. One of these businesses was to be focused on , to which the Company has committed .

In December 2011, Samsung Electronics sold its (HDD) business to .

In Q1 of 2012, Samsung overtook Nokia as the world's best selling cellphone brand.


Acquisitions and attempted acquisitions
For a company of its size Samsung has made relatively few acquisitions.

– Swiss watch battle
acquired a German camera-maker on 1995. Samsung (Rollei) used its optic expertise on the crystals of a new line of 100% Swiss-made watches, designed by a team of watchmakers at Nouvelle Piquerez S.A. in Bassequort, . Rolex's decision to fight Rollei on every front stemmed from the close resemblance between the two names and fears that its sales would suffer as a consequence. In the face of such a threat, the Geneva firm decided to confront. Rolex, this was also a demonstration of the Swiss watch industry's determination to defend itself when an established brand is threatened. Rolex sees this front-line battle as vital for the entire Swiss watch industry. Rolex has succeeded in keeping Rollei out of the German market. On 11 March 1995 the Cologne District court prohibited the advertising and sale of Rollei watches on German territory.

, a Dutch aircraft maker
Samsung lost a chance to revive its failed bid to take over Dutch aircraft maker Fokker when other airplane makers rejected its offer to form a consortium. The three proposed partners – Hyundai, Hanjin and Daewoo – have notified the South Korean government that they will not join Samsung Aerospace Industries Ltd.

Samsung bought AST (1994) and tried to break into North America, but the effort foundered. Samsung was forced to close the California-based computer maker after a mass defection of research talent and a string of losses.

clothing and apparel
In 1992, Daymond John had started the company with a hat collection that was made in his house in the Queens area of New York City. To fund the company, John had to mortgage his house for $100,000. With his friends, namely J. Alexander Martin, Carl Brown, and Keith Perrin, half of his house was turned into the first factory of FUBU, while the other half remained as the living quarters. Along with the expansion of FUBU, Samsung, a Korean company, invested in FUBU in 1995.

’ Asian operations
Samsung Securities was one of a handful of brokerages looking into Lehman Brothers Holdings. But Nomura Holdings has reportedly waved the biggest check to win its bid for Lehman Brothers Holdings’ Asian operations, beating out Samsung Securities, Standard Chartered, and Barclays. Ironically, after few months Samsung Securities Co., Ltd. and -based (more commonly known simply as Rothschild) have agreed to form a strategic alliance in investment banking business. Two parties will jointly work on cross border mergers and acquisition deals.

Grandis Inc. - memory developer
In July 2011, Samsung announced that it had acquired spin-transfer torque random access memory (MRAM) vendor Grandis Inc.Dylan McGrath, EE Times. " Samsung buys MRAM developer Grandis." August 2, 2011. Retrieved August 2, 2011. Grandis will become a part of Samsung's R&D operations and will focus on development of next generation random-access memory.Chris Preimesberger, eWeek. " Samsung Acquires New-Gen Memory Maker Grandis." August 2, 2011. Retrieved August 2, 2011.

Samsung and joint venture - LCD display
On December 26, 2011 the board of Samsung Electronics approved a plan to buy 's entire stake in their 2004 joint liquid crystal display (LCD) venture for 1.08 trillion won ($938.97 million).


Operations
Samsung comprises around 80 companies. It is highly diversified, with activities in areas including construction, electronics, financial services, shipbuilding and medical services.

has unveiled plans to build the world's first floating liquefied natural gas (FLNG) platform. At Samsung Heavy Industries' shipyard on Geoje Island in South Korea, work is about to start on a "ship" that, when finished and fully loaded, will weigh 600,000 tonnes – the world's biggest "ship". That is six times as much as the biggest US .


Subsidiaries and affiliates
As of April 2011 the Samsung Group comprised 59 unlisted companies and 19 listed companies, all of which had their primary listing on the stock-exchange.

008770
004000‎
012750‎
000810‎
005930
032830‎
029780‎
030000‎
067280‎


Joint ventures

Current
In 1973, and Samsung, a rising industrial corporation in Korea at the time, formed their first partnership, Samsung Corning, to manufacture and market cathode ray tube (CRT) glass for black and white televisions. The company’s first substrate manufacturing facility opened in Gumi, Korea in 1996.

Toshiba Samsung Storage Technology Corporation (abbreviated TSST) is an international joint venture company of (Japan) and Samsung Electronics (Korea). Toshiba owns 51% of its stock, while Samsung owns the remaining 49%. The company specialises in optical disc drive manufacturing.

SB LiMotive is a 50:50 joint company of (commonly known as Bosch) and Samsung SDI founded in June 2008. The joint venture develops and manufactures for use in hybrid-, plug-in and electric vehicles.

Samsung Total Petrochemicals Co., Ltd., is a joint venture between Samsung Group and French oil group (more specifically Samsung General Chemicals and Total Petrochemicals). Both companies own a 50% partnership in the venture.

  • Samsung BP Chemicals (1989–present)
Samsung BP Chemicals is a 50:50 joint company of (commonly known as BP) and Samsung. Samsung BP Chemicals Co., Ltd (SSBP) in 1989 with Samsung to produce high-value-added chemical products and supply them to related chemical industries.

  • SMP Ltd is a joint venture between Samsung Fine Chemicals and (NYSE: WFR).
MEMC Electronic Materials Inc. and an affiliate of Korean conglomerate Samsung are forming a joint venture to build a plant.

  • Siltronic Samsung Wafer Pte. Ltd
Siltronic Samsung Wafer Pte. Ltd, the joint venture by Samsung and wholly owned subsidiary Siltronic, was officially opened in in June 2008.

  • Samsung Thales Co., Ltd.
Samsung Thales Co., Ltd. was formerly known as Samsung Co., Ltd. and changed its name in 2001. The company was founded in 1978 and is based in Seoul, South Korea. Samsung Thales Co., Ltd. operates as a joint venture between Samsung Techwin Co. Ltd. and French aerospace and defence group .

  • SD Flex Co., Ltd.
SD Flex was founded on October 2004 as a joint venture corporation by Samsung and , one of the world's largest chemical company.

  • Samsung Bioepis
Samsung set up a joint bio-similar venture with US (NASDAQ:BIIB). The joint venture, named Samsung Bioepis, was set up by Samsung Biologics with an 85% stake and Biogen Idec with the remaining 15% stake.

  • Samsung Biologics
Samsung Electronics Co. and Samsung Everland Inc. will each own a 40 percent stake in the venture, with Samsung C&T Corp. and Durham, North Carolina-based each holding 10 percent. It will contract-make medicines made from living cells, and Samsung Group plans to expand into producing copies of biologics including , the and treatment sold by and Inc.

  • Siam Samsung Life Insurance (:บริษัท สยามซัมซุง ประกันชีวิต จำกัด) Co., Ltd.
Samsung Life Insurance, holds a 37% stake while Saha Group also has a 37.5% stake in the joint venture, with the remaining 25% owned by Thanachart Bank.

  • Samsung Air China LIfe Insurance Co,(Simplified Chinese:中航三星人壽保險有限公司) a 50-50 joint venture between (Simplified Chinese:中国航空公司), and Samsung Life Insurance Co, was set up in Beijing, July, 2005.

  • SSLM (Samsung Sumitomo LED Materials)
Samsung LED Co., Ltd., the Suwon, Korea-based LED maker, is to establish a joint venture in Korea with Tokyo, Japan-based Co., Ltd. The JV will carry out research and development, manufacturing, and sales of sapphire substrates for LEDs.

  • aT Grain Co., Ltd.
State-run Korea Agro-Fisheries Trade Corp. set up the venture, aT Grain Co., in , with three other South Korean companies, Korea Agro-Fisheries owns 55 percent of aT Grain, while Samsung C&T Corp, Transportation Co. and . each hold 15 percent.

  • Sermatech Korea Co., Ltd.(1999~present)
Sermatech owns 51% of its stock, while Samsung owns the remaining 49%. The U.S. firm Sermatech International, for a business focusing on highly specialized aircraft construction processes such as special welding and brazing.

  • Stemco Ltd.(1995~present)
A JV between Japan's and Korea's Samsung Electro-Mechanics.

  • Steco(1995~present)
Steco Co., Ltd. is established as the joint - venture company with Samsung Electronics Co., Ltd and Japan TORAY in 1995.

  • Brooks Automation Asia Co., Ltd.(1999~present)
own 70 percent and Samsung owns the remaining 30%. The business purpose of the Brooks-Samsung Joint Venture is to locally manufacture and configure vacuum wafer handling platforms and 300mm Front-Opening Unified Pod (FOUP) load port modules, and also design, manufacture and configure atmospheric loading systems for flat panel displays.


Defunct
  • GE-Samsung Lighting Ltd. (1998 to 2009)
GE Samsung Lighting, a joint venture with GE Lighting established in 1998. Four years ago, the tug-of-war between -based Company and Samsung ended in a split that ceased a 10-year-old joint operation.

S-LCD Corporation was a joint venture between the South Korean Samsung Electronics Co. Ltd (50% plus one share) and Japanese (50% minus one share) established in April 2004. On December 26, 2011, Samsung Electronics announced that it will acquire all of Sony's shares.

  • ChemCross.com (2000 to ?)
It formed Global Steel Exchange, a joint venture with of the U.S., Samsung, Switzerland's Duferco Group, and Luxembourg's Tradearbed(now part of the Group), to handle online buying and selling of steel.

  • Alpha Processor Inc. (1998 to ?)
In 1998, Samsung created a U.S. joint venture with --called Alpha Processor Inc. (API)--to help it enter the high-end processor market. The venture was also aimed at expanding Samsung's non-memory chip business. At the time, Samsung and Compaq invested $500 million in Alpha Processor.


Partially owned companies
Samsung currently owns 9.6% of Seagate Technology, making it the second-largest shareholder. Under a shareholder agreement, Samsung has the right to nominate an executive to Seagate’s Board of Directors.

Samsung currently owns 4.19% of Rambus Incorporated.

  • Atlantico Sul
Samsung Heavy Industries currently owns 10% of the Brazilian shipbuilder Atlantico Sul, which operates the largest shipyard in South America, including a 400 m × 73 m building dock and two 1,500-ton goliath cranes. Joao Candido, the largest ship built to date in Brazil, was built by Atlantico Sul with technology supplied by Samsung Heavy Industries.

Samsung currently owns 19.9% of Renault Samsung Motors, an automobile manufacturer.

KAI’s largest shareholder is state-owned Korea Finance Corporation, with a 26.75 percent stake while , and Group each holds a 10 percent stake.

  • MEMC KOREA
MEMC's joint venture with Samsung Electronics Company, Ltd. In 1990, MEMC entered into a joint venture agreement to construct a plant in Korea.

  • Co., the world's second-largest maker of marine engines.
Samsung Heavy Industries Co. is the second-biggest shareholder with a 14.1 percent interest.

  • SungJin Geotec Co., Ltd
Samsung Engineering recently acquired a 10 percent stake in Sungjin Geotec, an offshore oil drilling unit thatis a subsidiary of .

Samsung Oil & Gas USA Corp., subsidiaries of Samsung, currently owns 20% of Taylor Energy.

  • (Korean: DGB금융그룹, abbreviated as DGBFG) is a South Korean banking holding company headquartered in Daegu, Korea. Samsung Life Insurance was the largest shareholder with a 7.4% stake.


Revenues
Consolidated revenue is the sum of the revenues perceived by the company and the revenues from its subsidiaries all together. In FY 2009, Samsung Group had revenue of 220 trillion ($172.5 billion); financial results are based on parent companies. In FY 2010, Samsung reported 280 trillion KRW ($258 billion) worth of revenue, and 30 trillion KRW ($27.6 billion) profit. (*Based upon a KRW=USD exchange rate of 1,084.5 KRW per USD, the spot rate ) However, they also do not contain the revenues of overseas subsidiaries, and no one knows about real revenues.


Major customers
Major customers of Samsung include:
Royal Dutch Shell
Samsung Heavy Industries will be the sole provider of liquefied natural gas (LNG) storage facilities worth up to US$50 billion to for the next 15 years.

United Arab Emirates government
A consortium of South Korean firms - including Samsung, Korea Electric Power Corp and Hyundai - has won a deal worth 40 billion dollars to build in the United Arab Emirates.

Ontario government
The government of the of signed off one of the world's largest projects, signing a $6.6bn deal that will result in of new wind and capacity being built. Under the agreement a consortium – led by Samsung and the Korea Electric Power Corporation – will manage the development of -worth of new and of solar capacity, while also building a manufacturing supply chain in the province.


Logo

Audio logo
Samsung has an audio logo, which consists of the notes E♭, A♭, D♭, E♭. The audio logo was produced by and written by .


Samsung Medical Center
Samsung donates around US$100 million per annum to the (Korean: 삼성의료원), a non-profit healthcare provider founded by the group in 1994. Samsung Medical Center incorporates Samsung Seoul Hospital (Korean: 삼성서울병원), Kangbook Samsung Hospital (Korean: 강북삼성병원), Samsung Changwon Hospital (Korean: 삼성창원병원), Samsung Cancer Center (Korean:삼성암센터) and Samsung Life Sciences Research Center (Korean: 삼성생명과학연구소). Samsung Cancer Center, located in Seoul, is the largest cancer center in Asia. Samsung Medical Center and the multinational pharmaceuticals company have agreed to collaborate on research to identify the genomic mechanisms responsible for clinical outcomes in hepatocellular carcinoma.


Olympics
Samsung is hoping their role in the London 2012 Olympic Games will provide a "golden moment" for the company's UK reputation, according to Olympic news outlet Around the Rings. Around the Rings Vice President Gyehyun Kwon told ATR that "double digit gains in U.K. consumer awareness are possible" through Samsung's partnership with London 2012.

Samsung was instrumental in bringing the to . In December 2009, the former chairman of Samsung, , was pardoned in order that he could return to the International Olympics Committee and help South Korea bid for the 2018 Winter Olympics in Pyeongchang. He had previously been convicted of tax evasion in 2008 and had been part of two failed bids to bring the Olympics to South Korea.

During this bid, Lee Kun-hee and figure skating gold medalist lobbied heavily for support; it was thought that Lee's influence would help to secure the bid. On July 6, 2011, it was announced that Pyeongchang would be the location of the 2018 Winter Games. Samsung C&T Corporation will be among the top tier of firms competing for construction projects for the games.


Price cartels

DRAM price cartel
Samsung was fined EUR 145,728,000 for being part of a price cartel of ten companies for which lasted from 1 July 1998 to 15 June 2002. The company received, like most of the other members of the cartel, a 10-% reduction for acknowledging the facts to investigators. Samsung had to pay 90% of their share of the settlement, but Micron had to pay nothing for having revealed the case to investigators.


CRT glass price cartel
Samsung Corning Precision Materials participated in a price cartel of four companies for glass which lasted from 23 February 1999 to 27 December 2004. Samsung Corning Precision Materials received full immunity and was therefore not fined as it revealed the existence of the cartel to the European Commission.


See also


Notes and references

External links

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