Is Samsung a company based in China? Is Samsung a multinational corporation headquartered in the United States? Who owns Samsung now?
We’ve covered all there is to know about Samsung. We often use a company’s products but have no clue where they came from, just as few people know Samsung’s roots. It’s understandable, and in this situation, shoppers are learning about the product and the company’s history.
You will learn everything there is to know about Samsung in this article. Lee Byung-Chull established Samsung in March 1938. It was a sorrow when he died in 1987. Kun-hee Lee, his son, became the sole owner of the Samsung Corporation right away.
Lee Kun-hee died in October 2020 after a lengthy battle with sickness. His family expects to claim ownership and has already launched legal proceedings.
Who Owns Samsung? | How Has Samsung Changed Under Its Owners?
It would be best if you understood Samsung’s leadership and development history to learn better how it came to monopolize the international market on numerous platforms.
Here’s an interesting fact: Samsung did not start as a renowned manufacturer of high-quality goods. It started as a food trade shop under Mr. Lee Byung-Chull. He traded items made in Korea, where the business started. Noodles, for example, were supplied by Samsung to China and its environs.
Korea then went to war, ruining the economy in the process. As a patriot to his nation, Lee entered the textile business to assist in the rebuilding of his homeland. He established a huge woolen mill in Korea City. To help rebuild the country, the government implemented protectionist laws to aid major local firms like Samsung.
Samsung was protected from competition and had easy access to capital thanks to government measures tailored to its needs. As a side benefit, in the 1970s, Samsung expanded to include the full textile production process.
As a result of its growth, the firm focused on mechanization and established three subsidiaries.
1. Samsung Precision Manufacturing Co., Ltd.
2. Samsung Techwin or Samsung Heavy Industries Company
3. Samsung Shipbuilding Company.
Around this time, Samsung became interested in the petrochemical and chemical sectors, motivating Lee to invest in these fields hugely. The firm began to show signs of vast growth after that.
Samsung entered the electronics sector in 1969. The company’s early products were televisions that only displayed black and white images. It also made various household machines that it sold in other nations.
The company was a popular Korean manufacturer with a 50% shareholding in Korean Semiconductor. The company’s technological companies had grown significantly by the end of the 1970s and the beginning of the 1980s. Lee and his management improved the electronics and semiconductor industries by establishing branches.
Samsung launched its aeronautical section in 1978. In 1985, the corporation founded Samsung Data Systems, which today is known as Samsung SDS. That demonstrated its continued expansion.
Many firms needed systems development at the time, and Samsung Data Systems took control. Thus; Samsung was named the premier provider of information technology services.
Lee died in 1987, and his successor was his son, Kun-Hee. The corporation grew and dominated the global electronics industry under his leadership. Despite the major development and prosperity, the growth wasn’t easy. There are links of several patent violations and bribery charges to the firm.
A Look Back At Samsung’s History Over The Years
1. The Formative Years Were 1969–1980
On January 19, 1969, Samsung Electric Industries started in Suwon, South Korea, as an industrial branch of the Samsung Group. Regardless of the lack of emerging technologies and funds that put it further behind its existing rivals, Samsung Group enhanced its manufacturing standpoint by partnering with Japanese companies.
This decision triggered a widespread anti-Japanese uproar and opposition from rivals who feared that the Japanese were actively trying to subordinate the entire industry. The strategy could only take off once the government and Samsung jointly stated that Samsung would entirely focus on exports in the following years.
Furthermore, Toshio Iue, Sanyo’s founding father, worked as an advisor to Lee Byung-Chul, Samsung’s founding father, a total rookie in the electronics industry.
In December of 1969, Samsung Electric established a joint venture with Sanyo Electric and Sumitomo Corporation called Samsung-Sanyo Electric. This firm was the direct progenitor of Samsung Electronics, which is still in operation today.
According to the company’s website, the South Korean people knew Samsung Group at the time as a trade organization that specialized in fertilizers and sweeteners. They added computers and technological gadgets later.
From 1980 To 2000
With the purchase of Hanguk Jeonja Tongsin in 1980, Samsung joined the telecoms hardware market. Samsung began manufacturing telephone switchboards, telephone and fax systems, and mobile phones.
In the early 1980s, Samsung moved into Germany, Portugal, and New York.
In 1982, Samsung Printing Solutions was founded. A branch of this firm provides digital solutions to the printing industry. The next year, Samsung began making personal computers, and by 1984, its sales had topped one trillion Korean won.
The next ten years saw much more improvement and accomplishments. Samsung swiftly ascended to the semiconductor industry’s top, founded Samsung Motors, and began making digital televisions.
In addition, the firm began substantially investing in the design and production of components for other businesses. It aimed to become the largest consumer electronics producer in the world.
Samsung Ventures was established in 1999 to invest in startups that would focus on several of Samsung’s main offerings.
From 2000 To The Present
The SPH-1300, an early touch-screen prototype unveiled in 2001, was Samsung’s first incursion into the phone business. In 2005, the business also created the first speech-recognition phone.
Samsung bought firms that created technology for electronic devices in the late 2000s and early 2010s. Samsung debuted the Galaxy S II in 2011, followed by the Galaxy S III in 2012, one of the world’s most popular smartphones.
Samsung also became the world’s largest mobile phone manufacturer in 2012, and it acquired mSpot to give entertainment to Samsung device consumers.
The firm amassed several investments in the years afterward. That includes businesses that will help it grow its services in medicine and technology, smart TVs, OLED screens, security systems, printing solutions, cloud services, payment solutions, and artificial intelligence.
Samsung launched the Gear VR in September 2014, a virtual reality gadget designed to work with the Galaxy Note 4. Samsung had more U.S patents issued than any other corporation before the end of 2015, with over 7,500 utility patents awarded before the year’s conclusion.
The firm received official approval to test a self-driving car in 2017.
The Samsung Influence
Samsung has had a considerable effect on South Korea’s economic growth, politics, media, and society and has been a major contributor to the country’s development. Samsung was a primary driving factor behind the “Miracle on the Han River.”
Its subsidiaries contribute to almost one-fifth of South Korea’s total export production. Samsung’s earnings accounted for 17% of South Korea’s $1,082 billion gross domestic product in 2013. (GDP).
“It’s even plausible to claim that Samsung’s chairman is more influential than South Korea’s president.” According to Woo Suk-hoon, host of a popular economics podcast, the South Koreans believe that Samsung is untouchable and above the law.
There are accusations of Samsung forcing out smaller firms, restricting alternatives for South Korean customers, and occasionally colliding with other industry heavyweights to control prices while threatening anyone who wanted to investigate the company’s operations.
Samsung’s operations have over 80 companies. It operates in various industries, including construction, electronic goods, financial sectors, shipbuilding, and medical services.
The Samsung Group comprised 59 unlisted organizations and 19 publicly traded firms as of April 2011, all listed on the Korea Exchange.
What Awaits The New Head Of The Samsung Company?
As previously stated, the family of the late Samsung chairman, Lee Kun-hee, is already in court over who should head the company. Running a farm is hard, and maintaining Samsung’s position requires further effort and skills.
The following are some of the elements that may obstruct or stress the new leadership’s ability to manage the firm properly and retain its status:
1. The Royal Jewels
To preserve control of Samsung Electronics Co Ltd, the conglomerate’s crown jewel, the family’s leadership must maintain the requisite percentage of shares. The family now owns 5.8% of the firm.
The family hopes to inherit the whole firm from the late Kun-Hee, who held 4.18 percent. When you sum up the family’s stakes in Samsung C&T Corp and Samsung Life Insurance, it’s evident that they aim to control the company.
Following Kun’s death, Jay Y. Lee, the presumptive successor to Samsung, holds 0.7 percent of Samsung Electronics. However, his influence will get strengthened by his 17.3 percent stake in Samsung C & C&T.
2. Unpaid Taxes
The new Samsung management will have to figure out how to pay the backdated taxes. This may force them to sell equities in their Samsung SDS or other linked companies to meet their tax obligations.
Samsung’s combined holdings paid out $702 billion in dividends. It is responsible for around 32% of its annual tax burden. The new leadership might utilize the money to pay the company’s annual tax bill.