Samsung started out as a small export business in Taegu, Korea. Its founding Chairman, Byung-Chull Lee, started the company on March 1, 1938 with an initial investment of 30,000 won. The business primarily focused on exporting dried fish, vegetables and fruits to Manchuria and Beijing in China.
Lee named his business “Samsung,” which means “three stars.” Within more than a decade after its inception, Samsung owned flour mills and confectionery machines. Early on, its operations already included manufacturing and sales.
Samsung diversified its businesses in the 1970s by investing in heavy and chemical and petrochemical industries. This was a part of the strategy to secure the growth of the business. Samsung started to play in the textile industry to secure its competitive position. These diversifications led to the opening of other companies like Samsung Heavy Industries Company and Samsung Shipbuilding and Precision Company.
Its electronics business also saw tremendous growth during this time. Samsung Electronics became Korea’s major manufacturer of electronics. Its position in manufacturing semiconductors was secured by their acquisition of 50% interest in Korea Semiconductor. With the business of electronics and semiconductors beginning to grow in leaps and bounds, Samsung Electronics and Samsung Semiconductor became separate entities.
Samsung also launched its aerospace capabilities with the launching of Samsung Aerospace Industries in February of 1987. Samsung Data Systems was also established in 1985 to provide the company’s IT services, which included systems integration and management, networking services and consulting.
The speed in technological advancements led Samsung to deploy two research and development institutes that would spearhead the company’s potential expansion in electronics, semiconductors, genetic engineering, aerospace, high polymer chemicals and optical telecommunications.
The death of Samsung’s founding Chairman Lee in 1987 after being in the helm of the business for more than five decades put his son Kun-Hee Lee as the new chairman. The young Lee restructured the company to become one of top five electronics companies in the world.
The 1990s saw Samsung produce 17 new products. Some of Samsung products climbed to the top five products for global market in their respective areas. Twelve other products were in the top ranking products in their own respective categories.
Samsung’s commitment to innovation has earned them a respectable position in the world of electronics. Their products are recognized among the bests in the world.
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