Founded Samsung Introduction-2 Important points, 1970’s subsidized, In 1938, Samsung began as a small business trading produce and consumer goods. Almost 70 years later, Samsung has transformed itself into a global powerhouse whose superior products and services now range from semiconductors and LNG ships to fine chemicals and financial services, just to name a few. 1938-1970 Samsung Beginning On March 1, 1938, founding chairman Byung-Chull Lee started a business in Taegu, Korea with 30,000 won (South Korean currency).
At first, Mr. Lee’s little business was primarily in trade export, selling dried Korean fish, vegetables, and fruit to Manchuria and Beijing. But in just over a decade, SAMSUNG – meaning literally “three stars” in Korean – would have its own flour mills and confectionery machines, its own manufacturing and sales operations, and ultimately become the roots of the modern global corporation that still bears the same name today. 969-SAMSUNG-Sanyo Electronics established (Renamed SAMSUNG Electro-Mechanics in March 1975 and merged with SAMSUNG Electronics in March 1977) 1969-SAMSUNG Electronics Manufacturing incorporated (Renamed SAMSUNG Electronics in February 1984) 1970-1980 Samsung Industrial Era Throughout the 1970s, SAMSUNG laid the strategic foundations for its future growth by investing in the heavy, chemical, and petrochemical industries.
The company’s second “Five-Year Management Plan,” announced in August 1973, targeted these industries and also introduced SAMSUNG to the shipbuilding industry Another burst of growth for SAMSUNG came from the burgeoning home electronics business. SAMSUNG Electronics, already a major manufacturer in the domestic (Korean) market, began to export its products for the first time during this period. Another significant development was SAMSUNG’s 1974 acquisition of a 50 percent stake in Korea Semiconductor, further consolidate SAMSUNG Electronics’ reign as a leader in semiconductor manufacturing. 980-1990 Entering the global technology marketplace The late 70s and early 80s represented a time of increasing diversification and global growth for Samsung’s core technology businesses. In 1978, SAMSUNG Semiconductor and SAMSUNG Electronics became separate entities as new products were introduced to the global market. SAMSUNG Precision Company (established in 1977) laid the foundation in another high-tech industry – aerospace.
Renamed SAMSUNG Aerospace Industries in February 1987 (now known as SAMSUNG Techwin), SAMSUNG has been developing its aerospace capabilities with unprecedented speed ever since. Future plans include the development of future space stations – and even space facilities for the Moon and Mars in the early 21st century. SAMSUNG’s increasing focus on technology led to another key development in the mid-80s with the creation of the company’s two Research & Development institutes, SAMSUNG Economic Research Institute (SERI) in 1986.
SAMSUNG Advanced Institute of Technology (SAIT) in 1987. Together, these two pioneering R&D organizations have helped SAMSUNG expand its reach even further into electronics, semiconductors, high polymer chemicals, genetic engineering, optical telecommunications, aerospace and new fields of technology innovation from nanotechnology to advanced network architectures. On November 19, 1987, SAMSUNG’s founding Chairman Byung-Chull Lee passed away after almost fifty years at the helm of the company. His son, Kun-Hee Lee succeeded him as the new Chairman.
On the 50th anniversary of SAMSUNG’s founding in 1988, he announced the “Second Foundation” of the company, directing SAMSUNG’s growth towards becoming a world-class 21st century corporation. For this “Second Foundation,” SAMSUNG challenged itself to restructure old businesses and enter new ones with the aim of becoming one of the world’s top five electronics companies. The merger of SAMSUNG Electronics and SAMSUNG Semiconductor & Telecommunications was undoubtedly a key strategic moment in the progress towards this goal.
For the first time in the group’s history, SAMSUNG was now in a position to maximize its technological resources and develop value-added products. 1990-1997 Leaping onto the Global Stage New management Era New Management is more than a mere re-engineering of SAMSUNG but rather an entire revolution dedicated to making world-class products, providing total customer satisfaction, and being a good corporate citizen. In retrospect, New Management was a decisive turning point for SAMSUNG, the moment when the entire company was repositioned on the basis of “Quality first. During this period, 17 different products – from semiconductors to computer monitors, TFT-LCD screens to color picture tubes – leaped into the ranks of the top five products for global market share in their respective areas. There is no doubt that part of SAMSUNG’s success in these areas is due to its rigorous enforcement of quality control at all its plants across the world.? Thanks to the “Line Stop” system, any employee can shut down the assembly line when inferior products are discovered.
Production is simply halted until the problem is solved. SAMSUNG also adheres to the “Six Sigma” concept of total quality management. 1997-2000 Digital Frontier 1997 was a dark year for nearly all of Korea. That year, nearly all companies in Korea shrank. SAMSUNG was no exception. The company restructured by reducing the number of its affiliated companies to 45, decreasing personnel by almost 50,000, and improving the soundness of its financial structure.
Although the news was bleak, SAMSUNG was one of the few companies able to continue growing thanks to its leadership in digital and network technologies, and its steady concentration on electronics, finances, and related services. 2000-Present Pioneering the Digital Age With the start of the second millennium, SAMSUNG begins its second century. The digital age has brought revolutionary opportunities and changes to global business. The SAMSUNG Group has responded to these changes and is currently upgrading its business structure, management perspective, and corporate culture to meet global standards.
Our commitment of being “World’s Best” has won us the number one global market share for thirteen of our products. We succeeded in achieving the global competitiveness through continually improving our financial structure and profitability, as we examine the structure of our own organization. The quick pace of our development is reflected in our management philosophy “We will devote our human resources and technology to create superior products and services, thereby contributing to a better global society. “