Korea was a very poor country for years until it made the industrial revolution. Of course, Samsung is one of the companies that contributed the most to this industrial revolution. What are the secrets of success; Let's examine Samsung's story:
Samsung was founded on March 1, 1938 in Korea by Lee Byung-chul with a capital of only 30,000 won (about US$27). Samsung initially had only 40 employees, and the company was mainly active in the food industry. The name of the company, which trades many foods especially Chinese dishes, dried fish and vegetables, was formed by combining the words Sam, which means "three" in Korean, and Sung, which means "star". The Korean word Samsung means "three stars", representing greatness and power.
Lee Byung-chul (1910-1987)
In the post-World War II period, besides the food industry in Korea, textile came to the fore as a high-yielding industry. The company, which continued to grow in Seoul until 1947, withdrew from the north of the country after the start of the Korean War and continued its investments in the south. Towards the end of the 1950s, the textile industry in South Korea gained a rapid development momentum. Thereupon, Lee Byung-chul built Korea's largest woolen mill and established a textile factory in Busan. During the 1960s, the company launched some of South Korea's most admired textile products.
In the late 1960s, the company wanted to expand its high success in food and textiles in many areas from construction to shipping, insurance to advertising as South Korea was integrating with world markets. With the job opportunities it offered in this period when the pain of the Korean War was still fresh, it contributed greatly to the growth of South Korea and to forget its pain. In this respect, in the recent history of South Korea, Samsung, beyond being a trademark, can be considered as one of the most important dynamics in the resurgence of the people of South Korea in the post-war period.
The main factor in the rise of the Samsung brand was its investments in the technology and electronics industry since the second half of the 1960s. Electronic companies established within the company have enabled Samsung to achieve great success in the consumer electronics market with an increasing momentum since the 1970s. The company, which introduced the first black and white television produced in the television factory established in Suwon, South Korea, to the market in 1970, also pioneered many developments in the fields of communication and media in South Korea.
Samsung's sales success with black and white televisions enabled it to expand its investments in technological products from the second half of the 1970s. The number of black and white televisions it sold exceeded 1 million in 1976. A year later, the company began production of color televisions and entered the washing machine market. The total number of TV sets sold in 1978 reached 4 million. After the washing machine, the microwave oven entered the product range. In 1980, the company acquired Hanguk Jenja Tongsin and started production in the telecommunications hardware industry.
In the 1980s, the company continued its growth and expansion in many countries, especially in the USA, England and Japan. During this period, he made great investments in the field of desktop computers and information technologies. It entered the mobile phone market in 1985. After Lee Byung-chul's death in 1987, the Samsung Group split into four groups: Shinsegae Group, CJ Group, and Hansol Group.
Samsung's first notebook was launched in 1990. During this period, the company strengthened its software infrastructure to increase its power in the information technology and especially the mobile phone market. Although the brand's power in the world market is generally related to technological products, the power it gained in the mobile phones and semiconductors market in the 2000s reached far beyond other product groups. Launched in 2001, the SPH-i300 heralded Samsung's rise in the mobile phone market. Its investments in LCD technology since 2005 enabled it to reach a great power in the smartphone market today.
Today, Samsung, together with its subsidiaries and affiliates, continues its activities in many fields, especially in technology. Samsung Heavy Industries is the world's second largest shipbuilder. Samsung Engineering is the 13th construction company. Samsung Engineering gained great prestige around the world by building the Burj Khalifa, which holds the title of being the world's tallest building with a height of 828 meters. Samsung Techwin, the engineering unit of the company, has a very important position in the aircraft engines and gas turbines market.
Samsung has a very important place, especially in the South Korean economy. Its total annual income is 17 percent of South Korea's GDP. Moreover, it realizes one-fifth of South Korea's total exports.