Who Owns Samsung [Brief History and Evolution of Samsung]

Who Owns Samsung: You may be a fan of Samsung’s many electronic devices, but you may be completely unaware of who owns the company.

As a fan or a loyal customer, it is critical that you are aware of the existence of a firm you admire and that you use its high-quality products. Throughout this essay, you will discover everything there is to know about Samsung.

Samsung was founded in March 1938 by Lee Byung-Chull.

He passed away in 1987, which was a tragedy. His son, Kun-hee Lee, becomes the sole owner of the Samsung Corporation immediately.

Lee Kun-hee passed away in October 2020 after suffering from a long-term illness. His family is expecting to assume control over him, and they have already begun a legal battle to do so.

The Samsung logo and how the brand evolved over the years
Who Owns Samsung

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For a better understanding of how Samsung evolved to dominate the world’s market on numerous platforms, it is necessary to comprehend the company’s history of innovation and leadership.

Here’s some food for thought:

Samsung did not start out as a prominent manufacturer of high-quality items in a variety of categories.

When Mr. Lee Byung-Chull first opened the store, it was primarily a grocery trade store. He traded goods that were produced in Korea, which is where the company was founded.

Noodles, for example, were exported by Samsung to China and its environs.

Korea then entered a state of war, causing the country’s economy to collapse.

As a patriotic citizen of his country, Lee entered the textile industry in order to aid in the redevelopment of his homeland.

He established a massive woolen mill in the Korean capital of Seoul.

In order to assist in the revitalization of its country, the government enacted protectionist laws that benefited large domestic corporations such as Samsung.

Samsung benefited from government measures that were tailored to its needs, including protection from competition and cheap financing.

As a result, in the 1970s, Samsung expanded its operations to include the complete textile manufacturing process.

It has the ability to process raw materials and turn them into finished goods.

The corporation focussed on industrialization as a result of the effects of expansion, and the following subsidiaries were established during that time:

In the 1970s, Samsung established a number of subsidiaries

The Samsung Precision Corporation

Samsung Heavy Industries Company, often known as Samsung Techwin, is a Korean multinational corporation headquartered in Seoul, South Korea.

Samsung Shipbuilding & Marine Engineering

Around this time, Samsung became interested in the petrochemical and chemical industries, prompting Lee to make significant investments in these sectors. It was at this time that the company began to see signs of prospective growth.

Samsung made its first foray into the electronics business in 1969. The company’s earliest products were televisions that could only display in two colors: black and white.

It also manufactured various types of home electronics, which were supplied to other nations as well. For a brief while during this period, the corporation was a well-known Korean manufacturer, and it had acquired a 50% ownership in Korean Semiconductor.

When it came to technology, the company’s companies grew tremendously at the end of the 1970s and the beginning of the 1980s. By establishing branches for the electronics and semiconductor industries, Lee and his management contributed to the growth of those industries.

Founded in 1978, Samsung’s aerospace section was the first of its kind. It was in 1985 that the company launched Samsung Data Systems, which is now known as Samsung SDS, that it was able to demonstrate its consistent growth.

By then, many firms were in desperate need of system development, and Samsung Data Systems came to the rescue. As a result, Samsung has risen to the top of the list of the world’s biggest information technology services companies.

Lee passed away in 1987, and his son, Kun-Hee, took over as president.

Under his direction, the firm continued to grow and consolidate its position as the world’s leading electronics manufacturer.

Despite the significant development and expansion, the trip has not been without its difficulties.

The corporation was implicated in a number of patent infringement and bribery investigations.

It was in the 2000s that Samsung achieved its pinnacle of success with the debut of its Galaxy smartphone series.

Millions of buyers fell in love with the devices, which propelled them to the top of the worldwide smartphone sales charts.

Since 2006, the company has been at the forefront of the television manufacturing and distribution industries. In 2010, the company introduced the Galaxy Tab, a line of tablet computers that complements the Samsung Galaxy series.

A Glimpse of Samsung History for the Past Years

1969–1987: The formative years

Samsung Electric Industries was created as an industrial division of the Samsung Group on January 19, 1969, in Suwon, South Korea, as part of the Samsung Group.

According to the company’s website, the Samsung Group was known to the South Korean public at the time as a trading organization that specialized in fertilizers and sweeteners.

Despite a lack of technology and resources, which placed it even further behind its domestic competitors, Samsung Group was able to improve its position in the manufacturing industry by collaborating with Japanese companies, a decision that sparked a significant amount of anti-Japanese public outrage as well as widespread opposition from competitors who feared that the Japanese were attempting to subordinate the entire industry.

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The approach was only able to take off once the government and Samsung jointly announced that the corporation would solely focus on exporting in the coming years.

In addition, Toshio Iue, the founding father of Sanyo, served as a counselor to Lee Byung-chul, the founding father of Samsung, who was a complete rookie in the electronics business.

In December of the same year, Samsung Electric formed a joint venture with Sanyo Electric and Sumitomo Corporation, which was named Samsung-Sanyo Electric. This company was the direct forerunner of the current Samsung Electronics.

According to the company’s website, Samsung Group was known to the South Korean public at the time as a trading organization that specialized in fertilizers and sweeteners. Later items included computers and electronic devices.

As part of a joint venture with Japan’s NEC Corporation and Sumitomo Corporation, Samsung founded the Samsung-NEC joint venture in 1970 to manufacture household appliances and audiovisual products.

In later years, Samsung-NEC was renamed Samsung SDI, which became the group’s display and battery business unit. Samsung and Sanyo joined together in 1973 to form Samsung-Sanyo Parts, which was the forerunner of Samsung Electro-Mechanics. By 1981, Samsung Electric had produced more than ten million black-and-white televisions, according to company records.

In 1974, the Samsung Group entered the semiconductor market by acquiring Korea Semiconductor, which was on the edge of bankruptcy at the time and was in the process of constructing one of the country’s first chip-making facilities.

Soon after, Korea Telecommunications, a manufacturer of electronic switching systems and a member of the Samsung Group, acquired the semiconductor business, which was renamed Samsung Semiconductor & Communications after its founder.

When the “Tokyo Declaration” was made in February 1983, Lee, along with the board of directors of the Samsung industry and corporation agreement and assistance by sponsoring the event, declared that Samsung intended to become a dynamic random-access memory (DRAM) vendor, the announcement was dubbed the “Tokyo declaration.”

In 2013, Samsung stated that it had successfully built a 64-kilobyte dynamic random access memory (DRAM), narrowing the technological gap between enterprises from first-world countries and the youthful electronics manufacturer from more than a decade to around four years. Samsung utilized technologies imported from Micron Technology in the United States for the development of DRAM, and technologies imported from Sharp Corporation in Japan for the development of SRAM and ROM.

Samsung Electronics was formed in 1988 when Samsung Electric Industries and Samsung Semiconductor & Communications merged to from Samsung Electronics.

Previously, the two companies had not been one company and had not been a leading corporation together, but they were not competitors because they had been in talks for a long time prior to the merger.

Leading Technology was the brand name under which Samsung offered personal computers during the 1980s and early 1990s. The equipment, on the other hand, was made by Samsung, and the FCC filings from this time period almost always refer to Samsung goods as a whole. [32]

From 1988 through 1995, consumers faced a variety of challenges.

Samsung Electronics introduced the world’s first mobile phone on the South Korean market back in 1988. Sales were initially disappointing, but by the early 1990s, Motorola had a market share of more than 60% of the country’s mobile phone industry, compared to Samsung’s market share of only 10%.]

It was also a source of contention within the company as Samsung’s mobile phone division battled with poor quality and substandard products until the mid-to-late 1990s, and the company’s possible exit from this sector was a frequent topic of discussion.

Samsung Influence

A primary driving force behind the “Miracle on the Han River,” Samsung has a significant impact on South Korea’s economic development, politics, media, and culture, and has been a vital contributor to the country’s development.

Its associate companies account for around one-fifth of South Korea’s entire export output. In 2013, Samsung’s income accounted for 17 percent of South Korea’s $1,082 billion gross domestic product (GDP).  

“It is even possible to argue that the chairman of Samsung is more powerful than the president of South Korea. South Koreans have come to believe that Samsung is invincible and above the law, according to Woo Suk-hoon, host of a popular economics podcast, in a Washington Post article titled “In South Korea, the Republic of Samsung.” Woo Suk-podcast hoon’s is available on iTunes “, which was published on December 9th, 2012.

Samsung was accused of driving out smaller businesses, limiting options for South Korean consumers, and occasionally conspiring with fellow giants to fix pricing while intimidating individuals who sought to investigate the company’s practices.

A debate between Lee Jung-hee and other South Korean presidential candidates revealed that Lee Jung-hee believes that “Samsung has the power to influence the government.

Samsung is in charge of the legal world, the press, academia, and bureaucracy, among other things “. 

Operations

Samsung is made up of approximately 80 firms.

Construction, consumer electronics, financial services, shipbuilding, and medical services are some of the industries in which it operates.

As of April 2011, the Samsung Group consisted of 59 unlisted entities and 19 publicly traded companies, all of which were listed on the Korea Exchange as their primary listing.

A total of 220 trillion KRW ($172.5 billion) in consolidated revenues was announced by Samsung for the fiscal year 2009.

In the fiscal year 2010, Samsung reported consolidated revenues of 280 trillion KRW ($258 billion) and profits of 30 trillion KRW ($27.6 billion), based on a KRW-USD exchange rate of 1,084.5 KRW per USD, the spot rate on August 19, 2011, and profits of 30 trillion KRW ($27.6 billion). It should be noted that these figures do not reflect income from Samsung’s businesses based outside of South Korea.  

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Samsung Leadership

1. Lee Byung-chul (1938–1966, 1968–1987), who lived from 1938 to 1966 and 1968 to 1987.

2. Lee Maeng-hee (1966–1968), Lee Byung-first chul’s son, was born in 1966 and died in 1968.

3. Lee Kun-hee (1987–2008, 2010–2020), Lee Byung-third chul’s son, is a South Korean actor.

4. Lee Soo-bin (2008–2010) is a South Korean actor.

What Will Those Who Will Take Over Kun-Hee Lee’s Leadership Face?

As previously stated, the family of the late Samsung chairman, Lee Kun-hee, is already fighting in court over who should take over the company’s leadership.

Running a corporation is not easy, and it will take some extra effort and abilities to keep Samsung in its current position.

The following are some of the factors that may impede or stress the new leadership’s ability to manage the company properly and preserve its status:

1. The Crown Jewels

The family’s leadership must keep the required percentage of shares in order to maintain control of Samsung Electronics Co Ltd, the conglomerate’s crown jewel. Currently, the family owns 5.8 percent of the company.

The late Kun-Hee owned 4.18 percent of the company, which the family wants to inherit altogether. When you add up the family’s stake ownership in Samsung C&T Corp and 8.5 percent in Samsung Life Insurance, it’s clear that they want to dominate Samsung.

Jay Y. Lee, the presumed heir to Samsung following Kun-death, Hee’s owns 0.7 percent of Samsung Electronics. His dominance, however, will be bolstered by his 17.3 percent holding in Samsung C&T. His stake in Samsung C&T makes him the second-largest shareholder in Samsung Life Insurance.

2. Unpaid Taxes

The incoming Samsung executives will have to find a means to pay the unpaid tax.

They may be required to sell stocks in their Samsung SDS or other affiliated firms in order to pay their tax payments.

Dividends from Samsung’s combined holdings reached $702 billion.

It accounts for about 32% of the company’s annual tax burden. The sum could be used to pay the company’s yearly tax obligation by the new leadership.

The new leadership might possibly sell stock or take out loans to help pay off the debt.

Selling Samsung’s holdings may be unavoidable during the handover process. As a result, the family’s hold over Samsung Electronics will dwindle.

3. Resolving Inherited Taxes

If Lee’s family inherits his holdings, the tax burden will rise by about $10 trillion.

One-sixth of the total tax must be paid up front, with the remainder paid in payments over a five-year period. This means that annual tax payments could exceed $1 billion.

4. Legal squabbles

If the proposed legislation is passed, insurance companies will not hold huge amounts of non-financial stakes. As a result, Samsung may be obliged to sell an estimated $20 billion in stock. Lee’s family will be financially crippled if this occurs.

To keep control of the company, the family may decide to sell its Samsung C&T investment to supplement its other holdings.

Over the years, Samsung has experienced tremendous growth and profit, propelling it to the top of the list of the world’s greatest corporations. It is also well-known for its successful business divisions, which include the following:

Business Divisions of Samsung

  • Electronics
  • Medical equipment
  • The field of information technology
  • Communications using mobile devices
  • Refrigerators

Samsung would not have gotten this far without the help of crucial subsidiaries. Samsung owns the following businesses:

Companies owned by Samsung

  • AdGear
  • International Industries Harman
  • Joyent
  • Nexus
  • LoopPay
  • Novaled
  • Simpress
  • Proximal Information
  • SmartThings
  • Prismview

Despite the fact that the preceding information contains a wealth of knowledge on Samsung, you may still have unanswered queries. To assist you, the following are solutions to frequently asked Samsung inquiries.

A Detailed Guide About Products of Samsung

Samsung Electronics owns five companies.

Samsung Electronics Co. Ltd. (005930), headquartered in South Korea, is one of the world’s largest electronics corporations.

It is the largest firm controlled by the colossal Samsung Group, one of Korea’s renowned chaebols.

Chaebols are huge business conglomerates whose enterprises are controlled by a single family dynasty and which frequently benefit from government tax breaks and subsidies.

While chaebols are under fire for their own structure and involvement in corruption scandals, they played a critical role in South Korea’s quick transformation from an agrarian economy to one of the world’s largest economies focused on manufacturing and high technology.

Samsung Electronics, founded in 1969, emerged during the early years of this change and swiftly became one of South Korea’s economic foundations.

SmartThings

Smart Home and IoT Applications are the type of business.

  • Estimated acquisition cost: $200 million
  • Date of Purchase: August 15, 2014 (acquisition announced)

SmartThings, which was created in 2012, creates software apps and runs an open platform for consumers to utilize in their smart homes.

SmartThings also makes use of the Internet of Things. With a single smartphone app, customers can monitor, control, and automate their houses from anywhere.

SmartThings can be used to turn on lights when users get up and turn them off when they leave for work; it can lock doors and activate security cameras; it can notify homeowners of water leaks or unusual activity; and it can turn on music and other home appliances, among other things. In 2014, Samsung Electronics purchased SmartThings and incorporated it into the Samsung Open Innovation Center (OIC), an effort tasked with bringing software and service innovation to the firm.

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SmartThings is part of Samsung’s drive into connected technology and the Internet of Things.

LoopPay is a payment system that allows you to (now Samsung Pay)

  • Business Type: Digital Wallet Platform
  • Approximately $250 million was paid for the acquisition.
  • Date of Purchase: February 18, 2015 (acquisition announced)

LoopPay, which was created in 2012, provides a digital wallet platform that allows for contactless payment solutions.

The platform makes use of the company’s patented Magnetic Secure Transmission (MST) technology, which was developed with the help of an early investment from Samsung.

In 2015, Samsung bought LoopPay to increase its ability to provide smooth, secure, and dependable mobile wallet solutions

Samsung then established Samsung Pay by repurposing LoopPay’s intellectual property.

As both firms strive to generate service income, Samsung’s mobile payment software competes directly with Apple Inc.’s (AAPL) Apple Pay app.

TeleWorld

  • TeleWorld Solutions is a company that provides telecom services.
  • Network Services Provider is a type of business.
  • The purchase price was not disclosed.

Date of acquisition: January 13, 2020 (acquisition completed)

TeleWorld Solutions, founded in 2002, is a network services firm that specializes in wireless engineering and consulting.

The company specializes in 5G cellular network technologies, the intersection of AI and wireless networks, smart-city infrastructure, machine learning, and the Internet of Things (IoT).

In January, Samsung Electronics bought TeleWorld Solutions to expand its network infrastructure capabilities, particularly in 5G.

TeleWorld is another step toward Samsung’s objective of being a leader in smart infrastructure and IoT.

Novaled

  • Organic Electronics is a type of business.
  • The purchase price is $347 million.
  • Date of Purchase: August 9, 2013 (announced)

Novaled was created in 2001 as a spin-off from the Technical University and the Fraunhofer Institute, two of Germany’s leading scientific organizations.

The firm develops patented organic materials and accompanying revolutionary technologies for improved organic light-emitting diodes (OLEDs), which are utilized in digital displays and lighting.

The acquisition of Novaled has enabled Samsung to significantly improve the quality of its televisions and other screens in the highly competitive electronics market.

Our Final Thoughts

I hope after reading this article, you already understand the owner and other facts about Samsung. 

Frequently Ask Questions

Is It Simple to Purchase Samsung Stock in the United States?

You can acquire Samsung stock in the United States, but it is difficult because Samsung is a Korean firm.

As an American, it is simple to locate and purchase Samsung items. However, this is not the situation with the company’s stock.

Because Samsung is a foreign corporation, you cannot purchase its stock on exchanges such as the NYSE.

To purchase Samsung shares, you must do so as an over-the-counter ‘pink sheet’ stock, which means the transaction is unregulated. You can also purchase the company’s stock on KRX (Korea Exchange). To use this strategy, you must first open a brokerage account with a South Korean broker.

However, before you buy Samsung stock, you must complete the following:

  • Examine the company’s trends as well as expert analysis. Conduct qualitative and quantitative research to evaluate whether it is safe to purchase the shares at that moment.
  • Determine how well the company fits your investment objectives. Understand the distinction between a stock and an ETF. Also, research the competition to assist you make an informed decision about investing in Samsung.
  • Determine how much money you need to spend. Consider the following to help you determine the appropriate amount to invest:
  • The strategy you want to employ in the future
  • Your objectives and goals for the short term
  • How the amount will effect the balance of your portfolio

Do Americans Possess Samsung?

Unfortunately, many people believe this is due to the company’s success and global dominance in creating and selling a variety of items.

As previously said, Samsung is acquired by a Korean family.

However, the corporation has a considerable annual impact on the US economy. In addition, Samsung Telecommunications America, a subsidiary of Samsung, is headquartered in Richardson. It has over 1,000 employees in Texas.

Who's the owner of Samsung?

Samsung is owned by a Korean family. Kun-Hee, the founder’s son, took control when his father died. Following Kun-death Hee’s in late 2020, his family will assume control of Samsung.

To maintain the company’s worldwide and business prominence, the successors will need to step up their game.

If you have any questions, comments, or suggestions, please use the comment section below.

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