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Where is Samsung located? A Brief History of Samsung

The ability to balance on a knife's edge, instantly respond to changes and be always on the alert - these are the distinctive qualities. Many Korean companies sank, unable to withstand all sorts of “cleansing” and persecution, but Samsung not only survived, but also became a transnational corporation.

Based on the biography of Samsung founder Lee Byong Chul, you can make an action film in the spirit of Jackie Chan. “Three Stars” was the translation of the name of the company he founded in 1938. This company did not even think about any high technology at that time, quietly supplying rice, sugar and dried fish to China and Manchuria. It was seen as a protest against dependence on Japan, and Samsung gained a reputation as a patriotic entrepreneur. Then the company supplied the American troops with beer and vodka, having specially built the largest plant. But for this (1950), the North Korean communists put the name of Lee Byong Chul on the hit list as an accomplice of the puppet regime.
If Lee hadn't smelled the heat, reinvested all the profits, and turned all the proceeds into cash, Samsung would have died. How the money stuffed into a wine box survived is a separate story. The car in which they were transported was confiscated, the house in which they were hidden was completely burned down, and the wooden box was only charred! And Samsung, as they say, has risen from the ashes.
The second time Lee was put on the execution list was under Park Chung Hee. Formally, for illegal enrichment from government supplies and economic sabotage, but in reality for rubbing shoulders with the Japanese, trying to learn from the experience of the zaibatsu (chaebol in Korean, but in our opinion something like a powerful clan).
After a sincere conversation with General Lee, not only was he not shot, but he was appointed head of the entrepreneurs of Korea. Samsung has become a concern that accepts government orders and enjoys all kinds of subsidies and benefits. What did the company do, which grew into a huge conglomerate (1970) - machines, ships, and chemical plants...

In general, everything that happened before the 70s somehow loosely correlates with the image of a modern corporation, and its real predecessor can rightfully be called Samsung-Sanyo Electronics - the first joint Korean-Japanese venture. True, cooperation with those same zaibatsu turned out to be not the most successful - the Japanese clamped down on the latest technologies and shared only outdated ones, and raised prices for components. This is one of the reasons for removing Sanyo from the company name - the Koreans simply learned to make semiconductors themselves. By the end of the 70s, Samsung Electronics had become the flagship enterprise of the Lee empire, and in the late 80s there was an economic crisis in Korea, and the company became unprofitable.
Samsung again had every chance to cease to exist, but this did not happen, since Lee the Second (Kun Hee) developed a rescue plan long before the crisis. Everything was planned to change, with the exception of wives and children. The key point in the restructuring was a shift in priorities - quality became more important than quantity. Perestroika lasted 10 years and was crowned with success. One after another, companies went bankrupt: Hanbo, Daewoo, Huyndai, while Samsung increased exports and established itself in the global high-tech market.

The year 1995 can be called a turning point in the history of Samsung - the beginning of the company's transformation into a high-quality brand. The symbol of this moment is a photograph in which 2,000 employees smash defective Samsung products to smithereens - 150 thousand faxes, mobile phones and other devices. Samsung Group survived the last Asian crisis in 1997 with a new president, Jong-Yong Yun. Sacrificing his tail to save his life, Yun liquidated dozens of secondary businesses, fired a third of the staff, breaking the practice of lifetime employment, and bet on emerging digital technologies.
As you can see, while other companies were engaged in research and one after another released the world's first new products - a compact disc, a transistor radio, a video camera, etc., Samsung survived, struggled with difficulties and developed. So it’s impossible to say about this company that some distant year it came up with something innovative and everyone loved it. Samsung's hit products come precisely from the current millennium.
It’s even hard to imagine that this company once produced b/w TVs and other goods at “reasonable” prices. Today, Samsung has become one of the most innovative and successful players in the consumer electronics and semiconductor market. It is the world's leading manufacturer of memory chips, flat panel LCD displays and color televisions.

The company was a pioneer in the development of SDRAM, the ultra-fast memory chips used in personal computers, and a special memory chip used in the Sony PlayStation 2 video game console. A camera phone the size of a credit card! A third generation phone that receives satellite TV programs! The smallest multifunction printer in the world! And what’s most amazing is that in the summer of 2005, Samsung’s brand value surpassed Sony for the first time! This was calculated by one of the British research companies.
In the TV market, Samsung definitely surpassed not only Sony, but also Philips, and did so back in 2003. At the CeBIT exhibition last year, Samsung wiped everyone's noses by presenting the world's largest 102-inch plasma panel (more than two meters!), Even Oracle CEO Larry Ellison signed up for it. LCD TVs of new models were appreciated by magazines and experts, noting this in various nominations such as “Best Buy” and “5 points.” And the LN-57F51 BD LCD TV was even called a representative of the new era of televisions. Of course, with it you don’t even need to darken the room, since the picture quality does not depend on the ambient lighting.

Hardly a week goes by without Samsung announcing something great. Like the world's first mobile phone with a built-in five-megapixel camera (now it has 7 megapixels) or the same first phone with a hard drive. In general, if we talk about the company’s development trends or even its mission, it is both external and internal related to digital convergence. This is when you look at a device and cannot determine its class.
Take the SCH-S250 mobile phone, which has the functionality of a camcorder, an MP3 player, 92 MB of memory and a display with a resolution of 320 x 240 pixels - well, what kind of mobile phone is it? Samsung believes that it has no competitors in this convergence, since no company has such a range of proprietary technologies as Samsung. A bit boastful, but it seems to be true, since Samsung is a real manufacturing company, and not a sticker of labels on other people's products. Suffice it to say that Samsung is the only company in the world that produces laptops and monitors in its own factories, without using the services of OEM suppliers.

But Samsung is not only a high-tech factory, as it might seem, but also a recognized R&D center. There is, for example, a simple-looking small TV. Do you know what's interesting about it? It looks like a modern LCD, but is actually tube-based. This is an example of Samsung's innovative design thinking. Another example: an antibacterial phone coated with a special paint that releases colloidal silver. Laptops will soon no longer have hard drives - they will be replaced by a new generation of flash memory, which Samsung will launch in 2007.

With purely Korean cunning or foresight, Samsung approached the war between the HD-DVD and Blu-ray formats - instead of supporting one of the sides, as Sony and Toshiba did, it went and developed a combo player that supports both formats. Samsung's maximum program is ambitious: to become one of the top three leaders in the electronics industry both in terms of volume and quality of products, and to double the number of leading areas. The movement in this direction is noticeable to the naked eye - more and more new Samsung products are coming into the consumer range above the average level and even in the premium segment.

In the 21st century, many companies from different countries are moving production to China and other countries with inexpensive labor, as this saves a lot of money, and without sacrificing quality. Yes, contrary to the popular stereotype, not everything made in China is bad.

A clear confirmation of this is the smartphones of the South Korean company Samsung, which have long been produced and assembled not only in China, but also in Vietnam.

So, what country of manufacture could the Galaxy S7 have? There are only three options:

Korea.
Vietnam.
China.

And for some reason everyone wants the Korean version of the smartphone. Let's use China as an example to see why you shouldn't be afraid of assemblies from factories in other countries.

There is no need to be afraid of buying an expensive Galaxy S7 because it was made in China. Nowadays, most companies manufacture their products in the Middle Kingdom. At the same time, of course, marketers focus on the origin of the brand - Japan, Germany, USA - but tactfully remain silent about the place of production and assembly. This is done precisely because of the stereotype about the low quality of Chinese goods.

In the case of any things made in China, the rule that the more expensive the better is truer than ever. A cheap Chinese smartphone with a built-in antenna and TV, bought for a couple of thousand rubles, will most likely slow down ungodly and freeze regularly, but for a moment, remember how much it cost. And some Galaxy S7, which costs more than some earn per month, is of excellent quality for the same assembly location.

Those who are still intimidated by “Chinese quality” should look around and wonder how many of the objects around them are made in China. Most likely, this extensive list will include a refrigerator, laptop, computer system unit with all its contents, TV, smartphone, router, speaker system, jeans, shirts, bed linen, kettle, microwave oven... The list will be very, very long.

What matters is not the place where the Galaxy S7 is produced and assembled, but the fact that Samsung’s Chinese factories have strict quality control, and the production and assembly processes themselves have long been fine-tuned during the pilot launch of the model in Korea. Yes, practical Koreans first start production at home, fix all the problems, and only then send the proven and proven scheme to their own factories in China.

So, don't shy away from buying the coveted Galaxy S7 just because it comes from China. On the contrary, at the initial stages of production - in the first batches (when smartphones are assembled only in Korea), various defects, manufacturing defects, etc. are possible. And these shortcomings are corrected with each new batch - the “newer” the phone, the fewer shortcomings it has. And when the assembly moves to a plant in another country, everything is assembled there “as it should be.”

The only thing you shouldn't do is buy a copy of the Galaxy S7, but that's a conversation for.

And of course, we must remember that any other similar smartphones are either entirely produced there or assembled in other countries from Chinese components. And the place of assembly no longer matters - what difference does it make where the smartphone is assembled if it is assembled by error-free robots?

The active development of the supply of food products, such as rice, sugar and dried fish, made it possible to officially register the Samsung Trading Company trademark. The foreign (for Korea) origin of the name was a consequence of the far-reaching, ambitious plans of the Korean entrepreneur: by the end of the 1950s, Lee Byung was going to establish trade with the countries of the American continent. And after the landing of US troops on the Korean Peninsula, the products of the plant for the production of rice vodka and beer began to be sold to representatives of the allied forces. The Korean War put an end to this business. Warehouses were looted and burned, as were the company's main factories.

There is a legend that in the ruins of a burned house, Lee Byung found a hidden box with money, which he invested in his new business. It was a textile factory, a sugar factory, and later an insurance business. Lee Byung quickly grew rich, despite the fact that the average per capita income in Korea in the 1960s did not exceed $80. It is worth noting that at that time, even in the capital, Seoul, there was no constant electricity; electricity was supplied for several hours a day, and there was no centralized water supply. It is not surprising that a quick military coup overthrew Lee Seung Man, president and close friend of Lee Byung, who, as a wealthy businessman, was part of the disgraced ruler’s inner circle. Lee Byung-chul himself was imprisoned for bribery and close acquaintance with the ousted president.

Samsung after the Korean War

The new president of South Korea, General Park Chung-hee, began industrial and economic reforms. A program for the development of the industrial sector of the economy was developed, an increased focus on exports was supported by close relations with the United States, it was planned to take out foreign loans, purchase raw materials and modern technologies, and use the profits received again to purchase raw materials and equipment. Korean reformers concluded that a stable economy should rely on large concerns, but they had to be created as soon as possible, so government loans and loans were provided to the most prominent businessmen in Korea. They were provided with government orders, while certain legal and tax breaks made it possible for small businesses to grow into large conglomerates. Lee Byung-chul was among the successful entrepreneurs.

Thus, 30 large companies were created (chaebol - “money families”). Among them, in addition to Samsung, were Daewoo, Hyundai, Goldstar (LG), etc. Each “money family” had its own direction: Daewoo - car production, Goldstar - household appliances, Samsung - electronics, Hyundai - construction, etc. d.

Company reform

The merger of Sanyo and Samsung marked the beginning of one of the largest sectors of the Samsung Group - Samsung Electronics. The company managed, albeit with heavy losses, to survive the economic crisis of the 1980s. The price of the crisis is several non-core divisions and a sharp reduction in the number of subsidiaries. With the advent of Li Gon-hee to the board, a whole range of reforms was proposed, which involved not only a complete restructuring of the company, but also a change in the very foundations of management: the company had to fully comply with the conditions of the free trade law. Proposals to change the policy regarding external investors were supposed to increase the company's attractiveness for subsidies, since the conglomerate lost financial support from the state.

Until the 1980s, shares of companies included in the concern were circulated only in South Korea, and were in fairly low demand from investors. The reason is traditionally Asian management based on the principles of Confucianism: the board was headed exclusively by representatives of the Li family. External investors had no leverage over decision-making in the management of companies. In addition, traditional management implied lifelong employment and career advancement based on years of service.

Marketing changes were introduced, a complete redesign of the company's mission and a change in its symbol. The company's first two logos featured three red stars. But Samsung management, considering the previous logo inappropriate for the image of an international corporation, decided to replace it. It was then that the modern emblem was released - a dynamically inclined blue ellipse with the company name written inside. Excellent design and a large-scale advertising campaign did their job: the logo became one of the most recognizable in the world. Advertising students from leading universities are now studying the change of the Samsung logo as an example of an exceptionally successful rebranding.

When developing the new emblem, Eastern philosophy was not avoided. According to company representatives, “the elliptical shape of the logo symbolizes movement in global space, expressing the idea of renewal and improvement.” These changes continued until the 1990s. In 2015, only the company name, written in blue, was left.

Samsung Group financial report for 2006:

The concern's sales growth trends according to the company's annual reports:

General view of the profit distribution structure of the Samsung Group according to the report for 2006:

Area of activity of the division	Division name	Division sales, billion USD	% of total sales
Electronics industry	Samsung Electronics Samsung SDI Samsung Electro-Mechanics Samsung SDS Samsung Networks	63,4 7,15 2,58 2,26 0,598	39,90 4,50 1,62 1,42 0,38
Chemical industry	Samsung Total Petrochemicals Samsung Petrochemicals Samsung Fine Chemicals Samsung BP Chemicals	3,5 1,5 0,802 0,292	2,20 0,94 0,50 0,18
Finance and insurance	Samsung Life Insurance Samsung Fire & Marine Insurance Samsung Card Samsung Securities Samsung Investment Trust Management	29,1 8,76 2,36 1,31 0,08	18,31 5,51 1,49 0,82 0,05
Heavy industry	Samsung Heavy Industries Samsung Techwin	6,83 3,095	4,03 1,95
other activities	Samsung Corporation Samsung Engineering Samsung Everland Samsung Cheil Industries The Shilla Hotels & Resorts	10,18 2,18 1,55 1,47 0,469	6,41 1,37 0,98 0,93 0,30

Companies included in the Samsung Group concern are engaged in electronics and microelectronics, chemical industry, construction, automotive industry, heavy industry, finance and credit, and insurance. The structure of the concern includes the full cycle of electronics production, starting from the extraction of resources, their processing and ending with finished products. Most of the divisions of the conglomerate perform subordinate functions to companies directly involved in the manufacture of finished electronic products, and work exclusively for the concern or only within South Korea. This feature is clearly visible from the distribution of profits across divisions, thus the main income of the concern comes from the electronics industry.

Electronics industry

More than 70% of the concern's sales come from the electronics industry.

Companies in this division:

Samsung Electronics
Samsung SDI
Samsung Electro-Mechanics
Samsung SDS
Samsung Networks

The company's electronics industry divisions operate throughout the world, most of its products are exported. The breakdown of Samsung's electronics industry business by region is as follows:

The divisions are engaged in the production of hard drives (HDD), RAM, SRAM (including for the production of video card and processor chips), LCD monitors, LCD and plasma TVs, mobile phones of GSM, CDMA, 3G standards and with WiMAX support, equipment for IP -telephony, laptops, printers, MFPs, household appliances, etc., development of third and fourth generation wireless telecommunications networks, WiMAX.

Distribution of Samsung electronics industry business by technology areas:

It is worth noting the company's success in the US telecommunications market. In the third quarter of 2008, Samsung managed to take first place in mobile phone sales, ahead of its main competitor, Motorola (Strategy Analytics); in the European market, the corporation also took first place, displacing Nokia.

According to statistics from the research company DisplaySearch (Q1 2007), Samsung Electronics occupies a leading position among the leading television brands in the global market; similarly, Samsung remains in first place in the markets of Western and Eastern Europe and the North American region separately:

One of the most important areas, as already noted, is the creation of LCD panels (monitors) and TV, this is evidenced by the ubiquity of production. Samsung Electronics monitor manufacturing plants are located in South Korea (Suwon) (), Hungary (), Malaysia (), Great Britain (1995), Mexico (), China (1998), Brazil (1998), Slovakia (2002), India (2001), Vietnam (2001), Thailand (2001), Spain (2001), Russia (2008).

The head production in the suburbs of Seoul became busy with the production of displays of the highest quality (of all those produced by the concern), and a 6-sigma control system was introduced at this enterprise. Here they develop new models, test them, create the first series of products, and after successful implementation they distribute the burden of manufacturing a new product among factories around the world. This standard has been introduced at most of the concern's factories; for example, it is a corporate strategy for the operation of the Samsung SDI division.

In August 2015, Samsung launched Samsung Pay in South Korea. This tool will allow you to make payments using the brand’s flagship smartphones that support NFC data transfer.

Chemical industry

The structure of the chemical industry division includes five enterprises:

Samsung Total Petrochemicals (international company, joint venture with Total Group)
Samsung Petrochemicals
Samsung Fine Chemicals
Samsung BP Chemicals (international company, joint venture with BP Chemicals)

The industry brings the concern about $5 billion a year. Samsung Total Petrochemicals is the group's largest company engaged in the chemical industry; it is a joint venture between the Samsung Group and the French company Total Group, operating in the field of energy and chemistry. The petrochemical complex consists of 15 plants located in Daesan (South Korea), which produce household chemicals, general chemicals, basic chemicals:

paraxylene
LPG, fuel

Heavy industry

There are two divisions of the concern in the field of heavy industry:

Samsung Heavy Industries
Samsung Techwin

The division brings in about 10% of the concern's profit, as it works mainly on the domestic market of South Korea; in addition, part of the export goes to the USA and China. Among the main areas of activity of this division, it is worth noting work on security structures, the development of new types of weapons, as well as construction oil and gas pipelines, tankers. Major projects include the development of the KTX2 multi-role training aircraft, the K9 self-propelled howitzer, the creation of the world's largest liquefied gas tanker and container ship Xin Los Angeles.

Construction

The construction is carried out by one company of the concern:

Samsung Engineering

The industry brings the concern about $2 billion a year. The division is engaged in the construction of offices and factories for the Samsung Group around the world, the execution of third-party orders is very rare. Among the structures developed and designed by this company, it is worth noting the head office building of the Samsung Group in Seoul, the tallest building in the world - Burj Khalifa in the United Arab Emirates, Petronas Towers in the capital of Malaysia Kuala Lumpur, Taipei 101 in Taiwan, Lakhta center" in St. Petersburg.

Light industry

Samsung Cheil Industries, a company founded in 1954 as a textile manufactory, has successfully transformed into a leader in the fashion industry in the South Korean market, as well as a manufacturer of chemical materials: synthetic resins (ABS, PS) and compounds for the manufacture of semiconductor displays. This company produces such fashionable Korean clothing brands as Bean Pole, Galaxy, Rogatis and LANSMERE.

Marketing and advertising

Entertainment and Leisure Industry

The entertainment and recreation industry is represented in the conglomerate by two companies:

Everland Resort is located in Yongin, a suburb of Seoul. This is the largest entertainment complex in South Korea. The Shilla Hotels & Resorts is a chain of five-star hotels operating in a strategic alliance with Taj Hotels Resorts and Palaces (India). According to various travel agencies, Shilla is one of the ten best hotels in the world.

Payment system

In September 2015, Samsung launched its own payment system in the United States, Samsung Pay.
It allows you to make cashless payments using your smartphone. To implement this opportunity, NFC technologies are used simultaneously (to make a payment you need to bring the smartphone almost close to the terminal) and MST, which allows you to use the smartphone as a regular plastic card with a magnetic stripe. To achieve this, the device features innovative induction technology capable of generating a magnetic field similar to a bank card. The terminal recognizes the field as a regular card and completes the transaction.

Sponsorship and charity activities

Sponsorship in sports

Samsung is the owner of the Suwon Samsung Bluewings professional football team, the Samsung Lions baseball team, the Seoul Samsung Thunders basketball team, the Samsung Bichumi women's basketball team, the Samsung Bluefangs volleyball team, and the Samsung Khan pro-StarCraft team.
As part of its support for the sports movement, Samsung acts as an official sponsor of the Olympic Games, is a sponsor of the Russian Olympic team, the title sponsor of the Chelsea football club, supports the Russian Youth Olympic Team, and also organizes the Running Festival (since 1995), the Russian President's Cup golf and many other sports projects.

Support for the Olympic Movement

Samsung's involvement in the Olympic movement began in 1988 when the company became the National Sponsor of the Seoul Olympic Games. Since the Winter Olympic Games in Nagano in 1998, the company has joined the group of World Olympic Partners. The company is an official sponsor of:
- Summer Olympic Games in London in 2012;
- Winter Olympics 2014 in Sochi;
- 2016 Summer Olympics in Rio de Janeiro.
Samsung and Chelsea Football Club

The decision to cooperate was made in order to strengthen the company’s position in the field of telecommunications technologies in the European market.
In July 2009, the company and the football club came to a new mutual agreement. The previous agreement was valid until 2010, but it was decided to extend the agreement for another three years. According to the club's official website, the amount of the deal was increased, but exact figures were not announced.

Sponsorship in art and literature
- Literary prize "Yasnaya Polyana". Samsung acted as a co-founder of the Yasnaya Polyana award, founded in 2003. The prize winners are authors whose works awaken in readers the ideals of morality and charity. The prize is one of the prestigious literary awards in Russia, designed to support writers, followers of the morals and ideals of L. Tolstoy, the ideals of humanistic prose and poetry, which express the centuries-old traditions of Russian culture.
- Big theater . Cooperation between the State Academic Bolshoi Theater and Samsung Electronics began in 1991. Thanks to this union, a large amount of modern equipment appeared within the walls of the Bolshoi Theater, reconstruction and renovation of the theater halls and lobbies, modernization of the technical base, improvement of scenery and costumes for performances became possible. Samsung allocated more than $2 million for financial support from 2001 to 2001. Samsung fully finances individual projects of the Bolshoi Theater. For example, the production of Verdi’s opera “Nabucco” (2001), dedicated to the 100th anniversary of the great composer, or the revival of the ballet “Carmen Suite” (230th season, 2005). For the latter, the famous choreographer Alberto Alonso was invited.
- Hermitage . The cooperation began in 1997. Samsung provides logistical and technical support to the State Hermitage.
- Center for Contemporary Culture “Garage”. Samsung is a technical partner of the Garage CSK.
Charity in Russia

To date, Samsung provides financial and logistical support to 32 orphanages and boarding schools in the Kaluga, Leningrad, Rostov, Samara, Omsk, Nizhny Novgorod, Sverdlovsk regions, Krasnodar and Krasnoyarsk regions.

Criticism

Financial scandals

In 2007, Samsung's former head of lawyers, Kim Yong-chul, alleged that he had engaged in bribery and perjury on behalf of Samsung Chairman Lee Kun-hee. Kim said Samsung board members were training lawyers to be scapegoats in a “fabricated scenario” to protect Lee, even though those board members were not involved in the case. Kim also told the media that Samsung "took him out of the game" after he refused to pay a $3.3 million bribe to a judge hearing a case in which two of the company's executives were found guilty. Kim revealed that the company, under the names of nearly 1,000 Samsung executives and his own, illegally opened secret bank accounts, four accounts were opened to manage 5,000,000,000 won.
In February 2017, Samsung Group CEO Jay Lee was arrested on suspicion of involvement in a major corruption scandal. Lee is accused of bribing an official close to President Park Geun-hye to obtain a government contract. Prosecutors accuse Lee of embezzlement, transfer of assets abroad and perjury. Park Geun-hye's presidential powers were suspended as a result of an impeachment vote held on December 9, 2016 in the South Korean Parliament.

Monopoly

“You can even say that the chairman of Samsung is more powerful than the president of South Korea. The Korean people view Samsung as invincible and above the law,” said Woo Suk-hoon, host of a popular online economics radio in the article Washington Post under the title "In South Korea, Republic of Samsung", published on December 9, 2012. Critics argued that Samsung squeezed out small businesses by limiting choices for Korean consumers, and sometimes colluded with other giants to set prices, intimidating those who tried to find out the truth. Lee Young Hee, a South Korean presidential candidate, said in the debate: “The government is in the hands of Samsung. Samsung rules the legal world, the press, scientists and bureaucracy."

Viral Marketing

Taiwan's Fair Trade Commission is investigating false advertising by Samsung and its Taiwanese advertising agency. The case began after the Commission received complaints alleging that an advertising agency hired students to attack competitors of Samsung Electronics on Internet forums. Samsung made an announcement on its Facebook page, in which it stated that it does not interfere with any expert reports and stops online marketing campaigns, ad writing, or replies in online forums.

Notes
1. Traditions East-West (Russian). Retrieved December 1, 2008. Archived February 5, 2012.
2. Official website Samsung Group_Philosophy of the company (Russian) (unavailable link). Retrieved November 18, 2008. Archived June 19, 2008.
3. Shin Hyun Hwak. South Korea: a difficult path to prosperity. // Problems of the Far East. - . - No. 5.
4. The 100 TOP Brands(English) . Retrieved November 18, 2008. Archived February 5, 2012.
5. Official website Samsung Group_Company symbol (Russian). Retrieved November 18, 2008. Archived February 5, 2012.
6. Case: Samsung 1993 (undefined) . Archived November 19, 2012.
7. KRW/USD (exchange rate at the time of report (January 2007): 955.18/$1; KRW/EUR: 1,199.31/€1
8. Samsung Group annual 2006(English) (unavailable link). Retrieved November 18, 2008. Archived October 16, 2007.
9. Alexander Prokhorov. Journey to the Samsung Center // ComputerPress. - 2006. - No. 12.
10. News_Bureaucrats (Russian). 2008-11-07. Retrieved December 7, 2008. Archived May 31, 2012.
11. Official site Samsung Electronics(Russian) . Retrieved November 18, 2008. Archived February 5, 2012.
12. Alexey Maksimov. Samsung: bet on production // PCWEEK. - 2003. - No. 396(30).
13. Official site Samsung SDI(English) (unavailable link). Retrieved November 18, 2008.

March 10th, 2018

The image shows a warehouse in Daegu, where the history of Samsung began.

Few people probably know that Samsung began as a shop selling vegetables. The founder of the company is Lee Byong Chul. Lee's store sold vegetables and herbs grown in nearby fields. The company brought in good money - so Lee decided to move to Seoul, where he started processing sugar and later founded a textile factory. Lee tried to make the word “diversification” his slogan. Samsung was involved in many things - insurance business, security, retail trade.

Now Samsung, in addition to producing a variety of electronics, is engaged in the production of polymers, oil refining, makes tankers, military equipment and even passenger cars (which are called Samsung). The company is also involved in finance, insurance, textile production, and owns a chain of hotels, resorts and amusement parks.

Let's remember how it all happened.

The ability to balance on a knife's edge, instantly respond to changes and be always on the alert - these are the distinctive qualities Samsung. Many Korean companies sank, unable to withstand all sorts of “purges” and persecutions, but Samsung not only survived, but also became a transnational corporation.

Based on the biography of Samsung founder Lee Byong Chul, you can make an action film in the spirit of Jackie Chan. Li Biong called his small trading company in 1938 “ Three Stars» ( Samsung Trading Company). It is said that this was done in honor of Li's three sons.

Samsung Group "Three Star" logo (late 1980s - 1992)

This company did not even think about any high technology at that time, quietly supplying rice, sugar and dried fish to China and Manchuria. It was seen as a protest against dependence on Japan, and Samsung gained a reputation as a patriotic entrepreneur. During World War II, the United States landed on the Korean Peninsula and liberated South Korea from the Japanese. By this time, Li Biong was operating a large production plant rice vodka and beer. These products sold well to the American army and Li Biong's business went uphill. In 1950, a war broke out on the Korean Peninsula between the communist North and the pro-American South. And for this, the North Korean communists put the name of Lee Byong Chul on the hit list as an accomplice of the puppet regime.

If Lee hadn't smelled the heat, reinvested all the profits, and turned all the proceeds into cash, Samsung would have died. How the money stuffed into a wine box survived is a separate story. The car in which they were transported was confiscated, the house in which they were hidden was completely burned down, and the wooden box was only charred! And Samsung, as they say, has risen from the ashes.

The second time Lee was put on the execution list was under Park Chung Hee. Formally, for illegal enrichment from government supplies and economic sabotage, but in reality for rubbing shoulders with the Japanese, trying to learn from the experience of the zaibatsu (chaebol in Korean, but in ours something like a powerful clan).

After a sincere conversation with General Lee, not only was he not shot, but he was appointed head of the entrepreneurs of Korea. Samsung has become a concern that accepts government orders and enjoys all kinds of subsidies and benefits.

In the 60s, the Lee family expanded its business: it built Asia's largest fertilizer production, founded the Joong-Ang newspaper, built ships, hotels, universities and hospitals, and created a citizen insurance system.

In 1965, South Korea restored diplomatic relations with Japan. Lee Byong Chul reached an agreement with the Japanese leadership on technological support radio-electronic industry, which was emerging at that time in South Korea. As a result, in 1969, together with the Japanese company Sanyo, it was created Samsung - Sanyo-Electronics (SEC). It began to specialize in the production of semiconductors and a few years later became the property of Samsung. In 1970, cooperation with Sanyo Electric led to the merger of companies and the creation of a corporation Samsung Electronics.

Since August 1973, the company's main office began to be located in Suwon (South Korea), and in November the construction of a plant for the production of household appliances was completed. At the same time, the Korean company Semiconductor Co. joins the corporation, as a result of which mass production of washing machines and refrigerators began.

In 1977, the company's export volumes exceeded 100 million US dollars. In 1978, Samsung's first representative office opened in the United States. In 1979, the first consumer video recorders were released. However, half the cost of the product had to be given to the Japanese for the use of their technology and design. In addition, in other countries, Samsung products were sold under other brands or at very low prices.

As a result of the economic crisis that swept South Korea in the late 70s, Samsung Electronics began to generate losses. In response to this, Lee Kun-hee, the son of the company's founder, decided to reform the company. He reduced the number of subsidiaries, stopped subsidizing divisions, and put the quality of products at the forefront. These transformations had a positive impact on the company's financial condition - Samsung Electronics' revenues increased again. At this time she joined the company Korea Telecommunications Co, which was renamed Samsung Semiconductor & Telecommunications Co.

By the end of the 70s, Samsung Electronics had become the flagship enterprise of the Lee empire, and in the late 80s there was an economic crisis in Korea, and the company became unprofitable.

Samsung again had every chance to cease to exist, but this did not happen, since Lee the Second (Kun Hee) developed a rescue plan long before the crisis. Everything was planned to change, with the exception of wives and children. The key point in the restructuring was a shift in priorities - quality became more important than quantity. Perestroika lasted 10 years and was crowned with success. One after another, companies went bankrupt: Hanbo, Daewoo, Huyndai, while Samsung increased exports and established itself in the global high-tech market.

Samsung announced its first computer in 1983

In 1983, Samsung Electronics launched its first personal computers (Model: SPC-1000). In the same year, the following were released: a 64M DRAM chip with a memory capacity of 64 MB; a player that could read regular CDs, CD-ROM, VIDEO-CD, PHOTO-CD, CD-OK. In 1984, a sales office was opened in England, a production plant was built audio and video equipment in the USA, as well as a production plant microwave ovens(2.4 million pieces per year).

In 1986, Samsung Electronics received the title of " Best Company of the Year» from the Korean Management Association. In the same year, the company produced its ten millionth color television, opened sales offices in Canada and Australia, and research laboratories in California and Tokyo. From 1988 to 1989, company representative offices were opened in France, Thailand and Malaysia. By 1989, Samsung Electronics ranked 13th in the world in the production of semiconductor products. In the fall of 1988, the corporation merged with Samsung Semiconductor & Telecommunications Co.

In the 90s, Samsung Electronics intensively expanded its activities. In order to improve the management structure, a unified presidential management system was introduced at Samsung Electronics in December 1992. In 1991-1992, the development of the personal mobile devices, and also developed mobile phone system. In 1994, sales reached 5 billion US dollars, and in 1995, export volume exceeded 10 billion US dollars.

As you can see, while other companies were engaged in research and one after another released the world's first new products - a compact disc, a transistor radio, a video camera, etc., Samsung survived, struggled with difficulties and developed. So it’s impossible to say about this company that some distant year it came up with something innovative and everyone loved it. Samsung's hit products come precisely from the current millennium.

It’s even hard to imagine that this company once produced b/w TVs and other goods at “reasonable” prices. Today, Samsung has become one of the most innovative and successful players in the consumer electronics and semiconductor market. It is the world's leading manufacturer of memory chips, flat panel displays and color televisions.

By 1998, Samsung Electronics had the largest share of the LCD monitor market and began mass production of digital TVs.

In January 1999, Forbes Global magazine awarded Samsung Electronics annually awarded prize Best Consumer Electronics Company».

In the TV market, Samsung definitely surpassed not only Sony, but also Philips, and did so back in 2003. At the CeBIT exhibition in 2004, Samsung wiped everyone's noses by presenting the world's largest 102-inch plasma panel (more than two meters!), Even the head of Oracle Larry Ellison signed up for the queue. LCD TVs of new models were appreciated by magazines and experts, noting this in various nominations such as “Best Buy” and “5 points.” And the LN-57F51 BD LCD TV was even called a representative of the new era of televisions. Of course, with it you don’t even need to darken the room, since the picture quality does not depend on the ambient lighting.

Hardly a week has passed since Samsung announced something remarkable. Like the world's first mobile phone with a built-in five-megapixel camera (now this is of course no longer shocking) or the same.

No company has such a range of proprietary technologies as Samsung. A bit boastful, but it seems to be true, since Samsung is a real manufacturing company, and not a sticker of labels on other people's products. Suffice it to say that Samsung is the only company in the world that produces laptops and monitors in its own factories, without using the services of OEM suppliers.

But Samsung is not only a high-tech factory, as it might seem, but also a recognized R&D center.

Byong Chul Lee, founder of Samsung Trading Co

Byong Chul Lee died in 1987 from lung cancer. In one of the Samsung offices, in honor of the blessed memory of its founder, a commemorative bust made of bronze and marble was installed.

Commemorative bust of the company's founder

From the day of Byong Chul Lee's death to the present (with a break in 2008-2010), the board of directors of Samsung has been headed by the founder's youngest son, Lee Gong Hee. His appointment to the post of head of the board of directors went against all Eastern traditions, according to which the eldest son inherits most of the family property.

Founder's son - Lee Gun Hee

At the end of 2012, Lee Gun Hee appointed his son Jay Lee to the post of deputy board of directors, effectively recognizing him as the heir to the Samsung empire.

Jay Lee - heir to the Samsung empire

The post of CEO and Vice President of Samsung Electronics Co is occupied by Kwon Oh Hyun, who took office by decision of the company's board of directors on June 8, 2012.

Kwon Oh Hyun - General Manager and Vice PresidentSamsung Electronics Co

Today Samsung Electronics is a transnational corporation with offices in 47 countries and 70 thousand people working in them. The company occupies a leading position in the production of semiconductor and telecommunications equipment, as well as in the field of digital convergence technologies. The company consists of four main divisions: Digital Media Network Business, Device Solution Network Business, Telecommunication Network Business and Digital Appliance Network Business. In 2005, the company's sales were $56.7 billion and its net profit was $7.5 billion.

But look how history could have turned out. After all, Samsung could be the first to buy Android!

Let's remember 2005. There are no smartphones yet (at least as we know them now), operators control all content, complete confusion with operating system versions, and what works on Motorola is unlikely to run on Samsung. Application developers are running away from smartphones like hell, and those who want to do it are forced to literally write new code for each model separately, often more than 100 options at once.

Revolution, however, is in the air. Andy Rubin begins working on an operating system that was first intended for digital cameras, but then expanded to smartphones. He started out as an engineer at Carl Zeiss, but later worked on operating systems for handheld computers. He had the experience and support of several other engineers. In October 2003, he launched the Android project, but a year later the startup ran out of money and began searching for investors.

We all know now that eventually Ruby comes to Google and everyone lives happily ever after. But few people know that at first Rubin went with the newborn Android to Samsung. The entire team of eight Android engineers flew to Seoul to meet with what was then the largest phone manufacturer.

Rubin had a meeting with 20 Samsung executives to introduce Android, but instead of enthusiasm or just questions, the response was silence.

What kind of army do you want to create this with? You only have six people. Are you high? - that's what they said. They made fun of me in the meeting room. This happened two weeks before Google bought us,” Rubin writes.

In early 2005, Larry Page agreed to meet with Andy and after the presentation of Android, he not only agreed to help with money - he decided that Google would buy Android. The entire mobile industry was changing before our eyes, and Page and Brin watched this with concern, fearing that giants like Microsoft would seize the initiative.

The history of the Rubik's Cube and how it developed

May 2nd, 2015

The image shows a warehouse in Daegu, where the history of Samsung began.

Few people probably know that Samsung began as a shop selling vegetables. The founder of the company is Lee Byong Chul. Lee's store sold vegetables and herbs grown in nearby fields. The company brought in good money, so Lee decided to move to Seoul, where he started processing sugar and later founded a textile factory. Lee tried to make the word “diversification” his slogan. Samsung was involved in many things - insurance business, security, retail trade.

Let's remember how it all happened.

The ability to balance on a knife-edge, instantly respond to changes and be always on the alert - these are the distinctive qualities Samsung. Many Korean companies sank, unable to withstand all sorts of “purges” and persecutions, but Samsung not only survived, but also became a transnational corporation.

Samsung Group "Three Star" logo (late 1980s - 1992)

By the end of the 70s, Samsung Electronics had become the flagship enterprise of the Lee empire, and in the late 80s there was an economic crisis in Korea, and the company became unprofitable.

Samsung announced its first computer in 1983

In 1983, Samsung Electronics launched its first personal computers (Model: SPC-1000). In the same year, the following were released: a 64M DRAM chip with a memory capacity of 64 MB; a player that could read regular CDs, CD–ROM, VIDEO–CD, PHOTO–CD, CD–OK. In 1984, a sales office was opened in England, a production plant was built audio and video equipment in the USA, as well as a production plant microwave ovens(2.4 million pieces per year).

By 1998, Samsung Electronics had the largest share of the LCD monitor market and began mass production of digital TVs.

In January 1999, Forbes Global magazine awarded Samsung Electronics annually awarded prize Best Consumer Electronics Company».

But Samsung is not only a high-tech factory, as it might seem, but also a recognized R&D center.

Byong Chul Lee, founder of Samsung Trading Co

Byong Chul Lee died in 1987 from lung cancer. In one of the Samsung offices, in honor of the blessed memory of its founder, a commemorative bust made of bronze and marble was installed.

Commemorative bust of the company's founder

Founder's son - Lee Gun Hee

At the end of 2012, Lee Gun Hee appointed his son Jay Lee to the post of deputy board of directors, effectively recognizing him as the heir to the Samsung empire.

Jay Lee - heir to the Samsung empire

The post of CEO and Vice President of Samsung Electronics Co is occupied by Kwon Oh Hyun, who took office by decision of the company's board of directors on June 8, 2012.

Kwon Oh Hyun – General Manager and Vice PresidentSamsung Electronics Co

Today Samsung Electronics is a transnational corporation with offices in 47 countries and employing 70 thousand people. The company occupies a leading position in the production of semiconductor and telecommunications equipment, as well as in the field of digital convergence technologies. The company consists of four main divisions: Digital Media Network Business, Device Solution Network Business, Telecommunication Network Business and Digital Appliance Network Business. In 2005, the company's sales were $56.7 billion and net profit was $7.5 billion.

But look how history could have turned out. After all, Samsung could be the first to buy Android!

Rubin had a meeting with 20 Samsung executives to introduce Android, but instead of enthusiasm or just questions, the response was silence.

What kind of army do you want to create this with? You only have six people. Are you high? - that's what they said. They made fun of me in the meeting room. This happened two weeks before Google bought us,” Rubin writes.

The original article is on the website InfoGlaz.rf Link to the article from which this copy was made -