Samsung

[Mr.Espinoza ♔♔♔]

 

 

 

Samsung (hangul: 삼성, hanja: 三星)? It is a conglomerate of multinational companies based in Seoul, South Korea. It is the largest South Korean business group, with subsidiary limitations that cover businesses such as consumer electronics, technology, finance, insurance, construction, biotechnology and the service sector.2

The group was founded in 1938 by businessman Lee Byung-chul as a product import and export company, and subsequently expand its business to other sectors. Since then it has become a reference for the economic model of large conglomerates (chaebol) that drove the economic transformation of South Korea.2 3 Since the 1990s its international expansion took place through its branch of electronics, in particularly in appliances, mobile phones and semiconductors.

The most important companies it controls are Samsung Electronics, which in 2009 was changed into the world's largest electronics company by revenue; 4 Samsung Heavy Industries, the world's second largest shipbuilder; Samsung C&T, dedicated to civil construction; Samsung Life Insurance, and Cheil Worldwide advertising agency.

Samsung has had a great influence on the economic, political, media and cultural development of South Korea. It is estimated that all its affiliated companies represent a fifth of the country's exports, while its income represents 17% of the national gross domestic product (GDP)

The origins of the current Samsung group date back to March 1, 1938. That day businessman Lee Byung-chul (1910–1987) inaugurated in Daegu an import and export company of perishable products that he called Samsung Sanghoe (in Korean, “Three stars”) 6 During the time that Korea was occupied by Japan, the main business was the sale of dried fish and fruits to Manchukuo.7 At the end of World War II, Korea regained its independence and Samsung thrives on expanding its activity to the process of food and textile manufacturing.6

In 1948, Lee formed an alliance with businessman Cho Hong-jai to create the Samsung Moolsan subsidiary (now Samsung C&T), dedicated to trade and construction.6 However, the company established its official foundation in 1951, when the alliance is broken by disagreements between both parties; 7 while Lee assumes the Samsung brand, Cho would found a Hyosung group a decade later.

During the Korean War, Lee would flee Seoul to temporarily settle in Busan and open the Cheil Jedang sugar refinery (now CJ Group). The presence of US troops in the south of the peninsula allowed him to restart his commercial activity. At the end of the conflict, he would become one of the key entrepreneurs by benefiting from numerous public works contracts during the Syngman Rhee government.6 9 10

After Park Chung-hee's rise to power in 1961, Samsung becomes one of the main conglomerates (chaebol) that would support the private sector in South Korea.9 According to this economic plan, companies had to invest in strategic businesses if They wanted to benefit from state aid, 6 11 so they began by diversifying into insurers (1963) and electronic components (1969).

Current situation
With the arrival of the 21st century, Samsung has established itself as the most important company in South Korea in turnover, partly thanks to its electronic division.20 Samsung Electronics became the world's largest mobile phone manufacturer in 2012 surpassing Nokia, which has been leading the market since 1998.21 In addition, management announced the ten-year increase in investments in biopharmacy, biotechnology and smart watches, as well as a new headquarters in Silicon Valley.

Samsung was recognized by Booz & Co. and Boston Consulting Group in 2013 as the second most innovative company in the world, behind Volkswagen, after increasing R&D items by 15%.

The company has assumed two recent crises in October 2016. On the one hand, the war of lawsuits between Samsung Electronics and Apple for alleged violation of patents on smartphones.24 And on the other hand, they were forced to withdraw from the market all Samsung Galaxy Note 7 terminals due to manufacturing failure. 25 26

In April 2018, South Korean ex-president Lee Myung-bak was accused by the Prosecutor of a series of crimes, including allegedly accepting a bribe from Samsung to pardon Lee Kun-hee, president of Samsung Group, convicted of evasion of taxes.