Samsung

Samsung Group (Korean: 삼성; pronounced [sʰamsɔŋ]; stylised as SΛMSUNG) is a South Korean multinational manufacturing conglomerate headquartered in the Samsung Town office complex in Seoul. The group consists of numerous affiliated businesses, most of which operate under the Samsung brand, and is the largest chaebol (family-controlled conglomerates in South Korea). As of 2024, Samsung has the world's fifth-highest brand value.^[1]

Etymology

According to Samsung's founder, the meaning of the Korean hanja Samsung (三星) is three stars. The three stands for something big, numerous and powerful, while stars stands for everlasting or eternal.^[1]

1938–1980

In 1938, during the Japanese era, Lee Byung-chul (1910–1987), a member of a large landowning family in Ginei moved to nearby Taikyu and founded Mitsuboshi Trading Company (株式会社三星商会 (Kabushiki gaisha Mitsuboshi Shōkai)), or Samsung Sanghoe (주식회사 삼성상회). Samsung started out as a small trading company with forty employees located in Su-dong (now Ingyo-dong). It dealt in dried fish, locally-grown groceries and noodles.^[1]

1980–2000

In 1980, Samsung acquired the Kumi-based Hanguk Jeonja Tongsin and entered telecommunications hardware. Its early products were switchboards. The facility was developed into the telephone and fax manufacturing systems and became the center of Samsung's mobile phone manufacturing.^[1]

2000–present

In 2000, Samsung R&D opened a development center in Warsaw, Poland. Its work began with set-top-box technology before moving into digital TV and smartphones. The smartphone platform was developed with partners, officially launched with the original Samsung Solstice line of devices and other derivatives in 2008, which was later developed into Samsung Galaxy line of devices including Notes, Edge and other products.^[1]

Influence in South Korea

Samsung has a powerful influence on South Korea's economic development, politics, media and culture and has been a major driving force behind the "Miracle on the Han River". Its affiliate companies produce around a fifth of South Korea's total exports. Samsung's revenue was equal to 22.4% of South Korea's $1.67 trillion GDP in 2022.^[1]

Operations

Samsung comprises around 80 companies. Its activities include construction, consumer electronics, financial services, shipbuilding, and medical services, and two research and development stations that have allowed the chaebol to enter the industries of "high-polymer chemicals, genetic engineering tools [and biotech as a whole], aerospace, and nanotechnology."^[1]

Leadership

Lee Kun-hee (1987–2008, 2010–2020), Lee Byung-chul's third son^[1]

Defunct

Alpha Processor Inc. (API) was established in 1998 as a joint venture with U.S.-based Compaq, to enter the high-end microprocessor market. The venture was also aimed at expanding Samsung's non-memory chip business by manufacturing DEC Alpha CPUs.^[1]

Acquisitions and attempted acquisitions

Samsung formed Samsung Strategy and Innovation Center (SSIC) in 2012 and Samsung NEXT in 2013 for incubation, investment, partnerships, and acquisitions. In 2017, Samsung NEXT created a US$150 million fund for early-stage software and services startups. Samsung Catalyst Fund, SSIC's investment arm, has funded 15-20 startups per year.^[1]