Something about Samsung
Samsung is a South Korean multinational conglomerate headquartered in Samsung Town, Seoul.
Notable Samsung industrial affiliates include Samsung Electronics, Samsung Heavy Industries, and Samsung Engineering and Samsung C&T .
Other notable subsidiaries include Samsung Life Insurance, Samsung Everland and Cheil Worldwide .
Samsung has a powerful influence on South Korea's economic development, politics, media and culture and has been a major driving force behind
the "Miracle on the Han River". Its affiliate companies produce around a fifth of South Korea's total exports. Samsung's revenue was equal to 17%
of South Korea's $1,082 billion GDP.
Etymology
According to Samsung's founder, the meaning of the Korean hanja word Samsung is "tri-star" or "three stars". The word "three" represents
something "big, numerous and powerful".
History
1938 to 1970
In 1938, Lee Byung-chul of a large landowning family in the Uiryeong county moved to nearby Daegu city and founded Samsung Sanghoe .
Samsung started out as a small trading company with forty employees located in Su-dong . It dealt in dried-fish,
In the late 1960s, Samsung Group entered the electronics industry. It formed several electronics-related divisions, such as Samsung Electronics
Devices, Samsung Electro-Mechanics, Samsung Corning and Samsung Semiconductor & Telecommunications, and made the facility in Suwon. Its
first product was a black-and-white television set.
1970 to 1990
In 1980, Samsung acquired the Gumi-based Hanguk Jeonja Tongsin and entered telecommunications hardware. Its early products were
switchboards. The facility was developed into the telephone and fax manufacturing systems and became the center of Samsung's mobile phone
manufacturing. They have produced over 800 million mobile phones to date. The company grouped them together under Samsung Electronics in the
1980s.
After Lee, the founder's death in 1987, Samsung Group was separated into four business groups—Samsung Group, Shinsegae Group, CJ Group and
the Hansol Group. Shinsegae was originally part of Samsung Group, separated in the 1990s from the Samsung Group along with CJ Group, and the
Hansol Group . Today these separated groups are independent and they are not part of or connected to the Samsung Group.
In 1980s, Samsung Electronics began to invest heavily in research and development, investments that were pivotal in pushing the company to the
forefront of the global electronics industry. In 1982, it built a television assembly plant in Portugal; in 1984, a plant in New York; in 1985, a plant in
Tokyo; in 1987, a facility in England; and another facility in Austin, Texas, in 1996. As of 2012, Samsung has invested more than in the Austin
facility, which operates under the name Samsung Austin Semiconductor. This makes the Austin location the largest foreign investment in Texas and
one of the largest single foreign investments in the United States.
1990 to 2000
Samsung started to rise as an international corporation in the 1990s. Samsung's construction branch was awarded contracts to build one of the two
Petronas Towers in Malaysia, Taipei 101 in Taiwan and the Burj Khalifa in United Arab Emirates. In 1993, Lee Kun-hee sold off ten of Samsung
Group's subsidiaries, downsized the company, and merged other operations to concentrate on three industries: electronics, engineering and
chemicals. In 1996, the Samsung Group reacquired the Sungkyunkwan University foundation.
Samsung became the world's largest producer of memory chips in 1992 and is the world's second-largest chipmaker after Intel . In 1995, it created
its first liquid-crystal display screen. Ten years later, Samsung grew to be the world's largest manufacturer of liquid-crystal display panels. Sony,
which had not invested in large-size TFT-LCDs, contacted Samsung to cooperate, and, in 2006, S-LCD was established as a joint venture between
Samsung and Sony in order to provide a stable supply of LCD panels for both manufacturers. S-LCD was owned by Samsung and Sony and
operates its factories and facilities in Tangjung, South Korea. As of 26 December 2011, it was announced that Samsung had acquired the stake of
Sony in this joint venture.
Compared to other major Korean companies, Samsung survived the 1997 Asian financial crisis relatively unharmed. However, Samsung Motor was
sold to Renault at a significant loss., Renault Samsung is 80.1 percent owned by Renault and 19.9 percent owned by Samsung. Additionally,
Samsung manufactured a range of aircraft from the 1980s to 1990s. The company was founded in 1999 as Korea Aerospace Industries, the result of
a merger between then three domestic major aerospace divisions of Samsung Aerospace, Daewoo Heavy Industries and Hyundai Space and Aircraft
Company. However, Samsung still manufactures aircraft engines and gas turbines.
2000 to present
In 2010, Samsung announced a ten-year growth strategy centered around five businesses.
On 24 August 2012, nine American jurors ruled that Samsung Electronics had to pay Apple $1.05 billion in damages for violating six of its patents
on smartphone technology. The award was still less than the $2.5 billion requested by Apple. The decision also ruled that Apple did not violate five
Samsung patents cited in the case. Samsung decried the decision saying that the move could harm innovation in the sector. It also followed a South
Korean ruling stating that both companies were guilty of infringing on each other's intellectual property. In first trading after the ruling, Samsung
shares on the Kospi index fell 7.7%, the largest fall since 24 October 2008, to 1,177,000 Korean won. Apple then sought to ban the sales of eight
Samsung phones in the United States which has been denied by the court.
In 2015, Samsung has been granted more U.S. patents than any other company - including IBM, Google, Sony, Microsoft and Apple. The company
received 7,679 utility patents through 11 December.
On 2 August 2016, Samsung Electronics unveiled the Galaxy Note7 smartphone, which went on sale on 19 August 2016. However, in early
September 2016, Samsung suspended sales of the phone and announced an informal recall. This occurred after some units of the phones had
batteries with a defect that caused them to produce excessive heat, leading to fires and explosions. Samsung replaced the recalled units of the phones
with a new version; however, it was later discovered that the new version of the Galaxy Note 7 also had the battery defect. Samsung recalled all
Galaxy Note7 smartphones worldwide on 10 October 2016, and permanently ended production of the phone the following day.
Acquisitions and attempted acquisitions
Samsung has made the following acquisitions and attempted acquisitions:
Rollei – Swiss watch battle
Fokker – Dutch aircraft maker
AST Research
FUBU – clothing and apparel
Lehman Brothers Holdings' Asian operations
MEDISON Co.,Ltd. – ultrasound monitors
Grandis Inc. – memory developer
Samsung and Sony joint venture – liquid crystal displays
mSpot, Inc – music service
NVELO, Inc. – cache software developer
NeuroLogica – portable CT scanner
SmartThings – home automation
Quietside – U.S. air conditioner firm
Proximal Data – data virtualization
LoopPay – U.S. mobile payments firm
YESCO Electronics – U.S.-based manufacturer of light emitting diode displays
Viv – intelligent personal assistant
Rich Communications Services – text messaging standard
Sold parts
Samsung Techwin
Samsung Techwin was listed on the Korea Exchange stock-exchange, with its principal activities being the development and manufacture of
surveillance, aeronautics, optoelectronics, automations and weapons technology. It was announced to be sold to Hanwha Group in December 2014
and the take-over completed in June 2015.
Samsung Thales
Samsung Thales Co., Ltd. was a joint venture between Samsung Techwin and the France-based aerospace and defence company Thales. It was
established in 1978 and is based in Seoul. Samsung's involvement was passed on to Hanwha Group as part of the Techwin transaction. It is highly
diversified, with activities in areas including construction, consumer electronics, financial services, shipbuilding and medical services. These
amounts do not include the revenues from all of Samsung's subsidiaries based outside South Korea.
Affiliates
As of April 2011, the Samsung Group comprised 59 unlisted companies and 19 listed companies, all of which had their primary listing on the Korea
Exchange.
Ace Digitech is listed on the Korea Exchange stock-exchange .
Cheil Industries is listed on the Korea Exchange stock-exchange .
Cheil Worldwide is listed on the Korea Exchange stock-exchange .
Credu is listed on the Korea Exchange stock-exchange .
Imarket Korea is listed on the Korea Exchange stock-exchange .
Samsung Card is listed on the Korea Exchange stock-exchange .
Samsung SDS is a multinational IT Service company headquartered in Seoul. It was founded in March 1985. Its principal activity is the providing
IT system. Samsung SDS is the Korea's largest IT service company. It achieved total revenues of 6,105.9 billion won in 2012.
Samsung C&T Corporation is listed on the Korea Exchange stock-exchange .
Samsung Electro-Mechanics, established in 1973 as a manufacturer of key electronic components, is headquartered in Suwon, Gyeonggi-do, South
Korea. It is listed on the Korea Exchange stock-exchange .
Samsung Electronics
Samsung Electronics is a multinational electronics and information technology company headquartered in Suwon and the flagship company of the
Samsung Group. Its products include air conditioners, computers, digital televisions, liquid crystal displays and active-matrix organic light-emitting
diodes, mobile phones, monitors, printers, refrigerators, semiconductors and telecommunications networking equipment. It is the world's largest
mobile phone maker by unit sales in the first quarter of 2012, with a global market share of 25.4%. It is also the world's second-largest
semiconductor maker by 2011 revenues .
Samsung Electronics is listed on the Korea Exchange stock-exchange .
Samsung Engineering
Samsung Engineering is a multinational construction company headquartered in Seoul. It was founded in January 1969. Its principal activity is the
construction of oil refining plants; upstream oil and gas facilities; petrochemical plants and gas plants; steel making plants; power plants; water
treatment facilities; and other infrastructure. It achieved total revenues of 9,298.2 billion won in 2011.
Samsung Engineering is listed on the Korea Exchange stock-exchange .
Samsung Everland
Samsung Everland covers the three main sectors of Environment & Asset, Food Culture and Resort.
Samsung Fine Chemicals
Samsung Fine Chemicals is listed on the Korea Exchange stock-exchange .
Samsung Fire & Marine Insurance
Samsung Fire & Marine Insurance is a multinational general insurance company headquartered in Seoul. It was founded in January 1952 as Korea
Anbo Fire and Marine Insurance and was renamed Samsung Fire & Marine Insurance in December 1993. Samsung Fire & Marine Insurance offers
services including accident insurance, automobile insurance, casualty insurance, fire insurance, liability insurance, marine insurance, personal
pensions and loans. As of March 2011 it had operations in 10 countries and 6.5 million customers. Samsung Fire & Marine Insurance had a total
premium income of $11.7 billion in 2011 and total assets of $28.81 billion on 31 March 2011. It is the largest provider of general insurance in South
Korea. Samsung Fire has been listed on the Korea Exchange stock-exchange since 1975 . It achieved total revenues of 13,358.6 billion won in 2011
and is the world's second-largest shipbuilder by revenues .
Samsung Heavy Industries is listed on the Korea Exchange stock-exchange .
Samsung Life Insurance
Samsung Life Insurance Co., Ltd. is a multinational life insurance company headquartered in Seoul. It was founded in March 1957 as Dongbang
Life Insurance and became an affiliate of the Samsung Group in July 1963. Samsung Life's principal activity is the provision of individual life
insurance and annuity products and services. As of December 2011 it had operations in seven countries, 8.08 million customers and 5,975
employees.
Samsung Medical Center
The Samsung Medical Center was founded on 9 November 1994, under the philosophy of "contributing to improving the nation's health through the
best medical service, advanced medical research and development of outstanding medical personnel". The Samsung Medical Center consists of a
hospital and a cancer center. The hospital is located in an intelligent building with floor space of more than 200,000 square meters and 20 floors
above ground and 5 floors underground, housing 40 departments, 10 specialist centers, 120 special clinics and 1,306 beds.
The 655-bed Cancer Center has 11 floors above ground and 8 floors underground, with floor space of over 100,000 square meters. SMC is a tertiary
hospital manned by approximately 7,400 staff including over 1,200 doctors and 2,300 nurses. Since its foundation, the Samsung Medical Center has
successfully incorporated and developed an advanced model with the motto of becoming a "patient-centered hospital", a new concept in Korea.
Samsung SDI
Samsung SDI is listed on the Korea Exchange stock-exchange . On 5 December 2012, the European Union's antitrust regulator fined Samsung SDI
and several other major companies for fixing prices of TV cathode-ray tubes in two cartels lasting nearly a decade. SSDI also builds lithium-ion
batteries for electric vehicles such as the BMW i3, and acquired Magna Steyr's battery plant near Graz in 2015. SSDI began using the "21700" cell
format in August 2015. Samsung plans to convert its factory in Göd, Hungary to supply 50,000 cars per year.
Samsung Securities
Samsung Securities is listed on the Korea Exchange stock-exchange .
Samtron
Samtron was a subsidiary of Samsung until 1999 when it became independent. After that, it continued to make computer monitors and plasma
displays until 2003, Samtron became Samsung when Samtron was a brand. In 2003 the website redirected to Samsung.
Shilla Hotels and Resorts
Hotel Shilla opened in March 1979, following the intention of the late Lee Byung-chull, the founder of the Samsung Group. Hosting numerous state
visits and international events, it has played the role of locomotive for the service industry in Korea with pride and responsibility as "the face
representing the Samsung Group" and "the hotel representing Korea". Hotel Shilla maintains elegance and a tradition of winning guests' hearts with
the aim of becoming "the best hospitality company". By joining LHW, it is on par with the most luxurious hotels in the world. Meanwhile, it has
added modernistic design elements on top of the roof called tradition, thus going through changes to make itself a premium lifestyle space. In
addition, with its know-how as a service company in the background, it started a duty-free shop business, and has built its image as the best global
distribution company. Also, it is expanding its business into commissioned management of fitness facilities with five-star hotels in Korea and abroad
as well as into the restaurant business. Hotel Shilla promises to be a globally prestigious hospitality company that offers the best value for money by
making creative innovations and continuously taking on challenges. Shilla Hotels and Resorts is listed on the Korea Exchange stock-exchange .
S-1 Corporation
S-1 was founded as Korea's first specialized security business in 1997 and has maintained its position at the top of industry with the consistent
willingness to take on challenges. S1 Corporation is listed on the Korea Exchange stock-exchange .
Joint ventures
State-run Korea Agro-Fisheries Trade Corp. set up the venture, aT Grain Co., in Chicago, with three other South Korean companies, Korea Agro-
Fisheries owns 55 percent of aT Grain, while Samsung C&T Corp, Hanjin Transportation Co. and STX Corporation each hold 15 percent.
Brooks Automation Asia Co., Ltd. is a joint venture between Brooks Automation and Samsung which was established in 1999. The venture locally
manufactures and configure vacuum wafer handling platforms and 300mm Front-Opening Unified Pod load port modules, and designs,
manufactures and configures atmospheric loading systems for flat panel displays.
Company POSS – SLPC s.r.o. was founded in 2007 as a subsidiary of Samsung C & T Corporation, Samsung C & T Deutschland and the company
POSCO.
Samsung Air China Life Insurance is a 50:50 joint venture between Samsung Life Insurance and China National Aviation Holding. It was
established in Beijing in July 2005.
Samsung Biologics will be jointly owned. Samsung Electronics Co. and Samsung Everland Inc. will each own a 40 percent stake in the venture,
with Samsung C&T Corp. and Durham, North Carolina-based Quintiles each holding 10 percent. It will contract-make medicines made from living
cells, and Samsung Group plans to expand into producing copies of biologics including Rituxan, the leukemia and lymphoma treatment sold by
Roche Holding AG and Biogen Idec Inc.
Samsung Bioepis is a joint venture between Samsung Biologics and the U.S.-based Biogen Idec . In 2014, Biogen Idec agreed to commercialize
future anti-TNF biosimilar products in Europe through Samsung Bioepis.
Samsung BP Chemicals, based in Ulsan, is a 49:51 joint venture between Samsung and the UK-based BP, which was established in 1989 to produce
and supply high-value-added chemical products. Its products are used in rechargeable batteries and liquid crystal displays.
Samsung Corning Precision Glass is a joint venture between Samsung and Corning, which was established in 1973 to manufacture and market
cathode ray tube glass for black and white televisions. The company's first LCD glass substrate manufacturing facility opened in Gumi, South
Korea, in 1996.
Samsung Sumitomo LED Materials is a Korea-based joint venture between Samsung LED Co., Ltd., an LED maker based in Suwon, Korea-based
and the Japan-based Sumitomo Chemical. The JV will carry out research and development, manufacturing and sales of sapphire substrates for
LEDs.
SB LiMotive is a 50:50 joint company of Robert Bosch GmbH and Samsung SDI founded in June 2008. The joint venture develops and
manufactures lithium-ion batteries for use in hybrid-, plug-in hybrid vehicles and electric vehicles.
SD Flex Co., Ltd. was founded on October 2004 as a joint venture corporation by Samsung and DuPont, one of the world's largest chemical
companies.
Sermatech Korea owns 51% of its stock, while Samsung owns the remaining 49%. The U.S. firm Sermatech International, for a business
specializing in aircraft construction processes such as special welding and brazing.
Siam Samsung Life Insurance: Samsung Life Insurance holds a 37% stake while the Saha Group also has a 37.5% stake in the joint venture, with the
remaining 25% owned by Thanachart Bank.
Siltronic Samsung Wafer Pte. Ltd, the joint venture by Samsung and wholly owned Wacker Chemie subsidiary Siltronic, was officially opened in
Singapore in June 2008.
SMP Ltd. is a joint venture between Samsung Fine Chemicals and MEMC. MEMC Electronic Materials Inc. and an affiliate of Korean
conglomerate Samsung are forming a joint venture to build a polysilicon plant.
Steco is the joint venture established between Samsung Electronics and Japan's Toray Industries in 1995.
Stemco is a joint venture established between Samsung Electro-Mechanics and Toray Industries in 1995.
Toshiba Samsung Storage Technology Corporation is joint venture between Samsung Electronics and Toshiba of Japan which specialises in optical
disc drive manufacturing. TSST was formed in 2004, and Toshiba owns 51% of its stock, while Samsung owns the remaining 49%.
Defunct
In 1998, Samsung created a U.S. joint venture with Compaq—called Alpha Processor Inc. --to help it enter the high-end processor market. The
venture was also aimed at expanding Samsung's non-memory chip business by fabricating Alpha processors. At the time, Samsung and Compaq
invested $500 million in Alpha Processor.
GE Samsung Lighting was a joint venture between Samsung and the GE Lighting subsidiary of General Electric. The venture was established in
1998 and was broken up in 2009.
Global Steel Exchange was a joint venture formed in 2000 between Samsung, the U.S.-based Cargill, the Switzerland-based Duferco Group, and the
Luxembourg-based Tradearbed, to handle their online buying and selling of steel.
S-LCD Corporation was a joint venture between Samsung Electronics and the Japan-based Sony Corporation which was established in April 2004.
On 26 December 2011, Samsung Electronics announced that it would acquire all of Sony's shares in the venture.
Partially owned companies
Atlântico Sul
Samsung Heavy Industries owns 10% of the Brazilian shipbuilder Atlântico Sul, whose Atlântico Sul Shipyard is the largest shipyard in South
America. The Joao Candido, Brazil's largest ship, was built by Atlântico Sul with technology licensed by Samsung Heavy Industries. The companies
have a technical assistance agreement through which industrial design, vessel engineering and other know-how is being transferred to Atlântico Sul.
DGB Financial Group
Samsung Life Insurance currently holds a 7.4% stake in the South Korean banking company DGB Financial Group, making it the largest
shareholder.
Corning Inc.
Samsung acquired 7.4% of Gorilla Glass maker Corning, signing a long-term supply deal.
Doosan Engine
Samsung Heavy Industries currently holds a 14.1% stake in Doosan Engine, making it the second-largest shareholder.
Korea Aerospace Industries
Samsung Techwin currently holds a 10% stake in Korea Aerospace Industries . Other major shareholders include the state-owned Korea Finance
Corporation, Hyundai Motor and Doosan .
MEMC KOREA
MEMC's joint venture with Samsung Electronics Company, Ltd. In 1990, MEMC entered into a joint venture agreement to construct a silicon plant
in Korea.
Pantech
Samsung buys 10% stake in rival phone maker Pantech.
Rambus Incorporated
Samsung currently owns 4.19% of Rambus Incorporated.
Renault Samsung Motors
Samsung currently owns 19.9% of the automobile manufacturer Renault Samsung Motors.
Seagate Technology
Samsung currently owns 9.6% of Seagate Technology, making it the second-largest shareholder. Under a shareholder agreement, Samsung has the
right to nominate an executive to Seagate's Board of Directors.
Sharp Corporation
Samsung owns 3% of Sharp Corporation, a rival company.
SungJin Geotec
Samsung Engineering holds a 10% stake in Sungjin Geotec, an offshore oil drilling company that is a subsidiary of POSCO.
Taylor Energy
Taylor Energy is an independent American oil company that drills in the Gulf of Mexico based in New Orleans, Louisiana. Samsung Oil & Gas
USA Corp., subsidiaries of Samsung, currently owns 20% of Taylor Energy.
Wacom
Samsung owns 5% of Wacom.
Major clients
Major clients of Samsung include:
Royal Dutch Shell
United Arab Emirates government
Ontario government
Corporate image
The basic color in the logo is blue, which Samsung has employed for years, supposedly symbolizing stability, reliability and corporate social
responsibility.
Audio logo
Samsung has an audio logo, which consists of the notes E♭, A♭, D♭, E♭; after the initial E♭ tone it is up a perfect fourth to A♭, down a
perfect fifth to D♭, then up a major second to return to the initial E♭ tone. The audio logo was produced by Musikvergnuegen and written by
Walter Werzowa.
Font
In July 2016, Samsung unveiled its SamsungOne font, a typeface that hopes to give a consistent and universal visual identity to the wide range of
Samsung products. SamsungOne was designed to be used across Samsung's diverse device portfolio, with a focus on legibility for everything from
smaller devices like smartphones to larger connected TVs or refrigerators, as well as Samsung marketing and advertisements. The font family
supports 400 different languages through over 25,000 characters.
Samsung Medical Center
Samsung donates around US$100 million per annum to the Samsung Medical Center, a non-profit healthcare provider founded by the group in
1994. Samsung Medical Center incorporates Samsung Seoul Hospital, Kangbook Samsung Hospital, Samsung Changwon Hospital, Samsung
Cancer Center and Samsung Life Sciences Research Center. The Samsung Cancer Center, located in Seoul, is the largest cancer center in Asia.
Samsung Medical Center and pharmaceutical multinational Pfizer have agreed to collaborate on research to identify the genomic mechanisms
responsible for clinical outcomes in hepatocellular carcinoma.
Sponsorships
Samsung Electronics spent an estimated $14 billion on advertising and marketing in 2013. At 5.4% of annual revenue, this is a larger proportion
than any of the world's top-20 companies by sales . Samsung became the world's biggest advertiser in 2012, spending $4.3 billion, compared to
Apple's $1 billion. Samsung's global brand value of $39.6 billion is less than half that of Apple.
Controversies
Financial scandals
In 2007, former Samsung chief lawyer Kim Yong Chul claimed that he was involved in bribing and fabricating evidence on behalf of the group's
chairman Lee Kun-hee and the company. Kim said that Samsung lawyers trained executives to serve as scapegoats in a "fabricated scenario" to
protect Lee, even though those executives were not involved. Kim also told the media that he was "sidelined" by Samsung after he refused to pay a
$3.3 million bribe to the U.S. Federal District Court judge presiding over a case where two of their executives were found guilty on charges related
to memory chip price fixing. Kim revealed that the company had raised a large amount of secret funds through bank accounts illegally opened under
the names of up to 1,000 Samsung executives—under his own name, four accounts were opened to manage 5 billion won.
Antitrust concerns
"You can even say the Samsung chairman is more powerful than the President of South Korea. Korean people have come to think of Samsung as
invincible and above the law", said Woo Suk-hoon, host of a popular economics podcast in a Washington Post article headlined "In South Korea, the
Republic of Samsung", published on 9 December 2012. Critics claimed that Samsung knocked out smaller businesses, limiting choices for South
Korean consumers, and sometimes colluded with fellow giants to fix prices while bullying those who investigate. Lee Jung-hee, a South Korean
presidential candidate, said in a debate, "Samsung has the government in its hands. Samsung manages the legal world, the press, the academics and
bureaucracy".
Viral marketing
The Fair Trade Commission of Taiwan is investigating Samsung and its local Taiwanese advertising agency for false advertising. The case was
commenced after the Commission received complaints stating that the agency hired students to attack competitors of Samsung Electronics in online
forums. Samsung Taiwan made an announcement on its Facebook page in which it stated that it had not interfered with any evaluation report and
had stopped online marketing campaigns that constituted posting or responding to content in online forums.
Labor abuses
Samsung was the subject of several complaints about child labor in its supply chain from 2012 to 2015.
In July 2014, Samsung cut its contract with Shinyang Electronics after it received a complaint about the company violating child labor laws.
CLW issued a statement in August 2014 claiming that HEG employed over ten children under the age of 16 at a factory in Huizhou, Guangdong.
The group said the youngest child identified was 14 years old. Samsung said that it conducted an onsite investigation of the production line that
included one-on-one interviews but found no evidence of child labor being used. CLW responded that HEG had already dismissed the workers
described in its statement before Samsung's investigators arrived.
CLW also claimed that HEG violated overtime rules for adult workers. CLW said a female college student was only paid her standard wage despite
working four hours of overtime per day even though Chinese law requires ovetime pay at 1.5 to 2.0 times standard wages.
In Canada, during 1999, some DRAM micro chip manufacturers conspired to price fix, among the accused included Samsung. The price fix was
investigated in 2002. A recession started to occur that year, and the price fix ended; however, in 2014, the Canadian government reopened the case
and investigated silently. Sufficient evidence was found and presented to Samsung and two other manufacturers during a class action lawsuit
hearing. The companies agreed upon a $120 million agreement, with $40 million as a fine, and $80 Million to be paid back to Canadians who
purchased a computer, printer, MP3 player, gaming console or camera from April 1999 to June 2002.
Notable Samsung industrial affiliates include Samsung Electronics, Samsung Heavy Industries, and Samsung Engineering and Samsung C&T .
Other notable subsidiaries include Samsung Life Insurance, Samsung Everland and Cheil Worldwide .
Samsung has a powerful influence on South Korea's economic development, politics, media and culture and has been a major driving force behind
the "Miracle on the Han River". Its affiliate companies produce around a fifth of South Korea's total exports. Samsung's revenue was equal to 17%
of South Korea's $1,082 billion GDP.
Etymology
According to Samsung's founder, the meaning of the Korean hanja word Samsung is "tri-star" or "three stars". The word "three" represents
something "big, numerous and powerful".
History
1938 to 1970
In 1938, Lee Byung-chul of a large landowning family in the Uiryeong county moved to nearby Daegu city and founded Samsung Sanghoe .
Samsung started out as a small trading company with forty employees located in Su-dong . It dealt in dried-fish,
In the late 1960s, Samsung Group entered the electronics industry. It formed several electronics-related divisions, such as Samsung Electronics
Devices, Samsung Electro-Mechanics, Samsung Corning and Samsung Semiconductor & Telecommunications, and made the facility in Suwon. Its
first product was a black-and-white television set.
1970 to 1990
In 1980, Samsung acquired the Gumi-based Hanguk Jeonja Tongsin and entered telecommunications hardware. Its early products were
switchboards. The facility was developed into the telephone and fax manufacturing systems and became the center of Samsung's mobile phone
manufacturing. They have produced over 800 million mobile phones to date. The company grouped them together under Samsung Electronics in the
1980s.
After Lee, the founder's death in 1987, Samsung Group was separated into four business groups—Samsung Group, Shinsegae Group, CJ Group and
the Hansol Group. Shinsegae was originally part of Samsung Group, separated in the 1990s from the Samsung Group along with CJ Group, and the
Hansol Group . Today these separated groups are independent and they are not part of or connected to the Samsung Group.
In 1980s, Samsung Electronics began to invest heavily in research and development, investments that were pivotal in pushing the company to the
forefront of the global electronics industry. In 1982, it built a television assembly plant in Portugal; in 1984, a plant in New York; in 1985, a plant in
Tokyo; in 1987, a facility in England; and another facility in Austin, Texas, in 1996. As of 2012, Samsung has invested more than in the Austin
facility, which operates under the name Samsung Austin Semiconductor. This makes the Austin location the largest foreign investment in Texas and
one of the largest single foreign investments in the United States.
1990 to 2000
Samsung started to rise as an international corporation in the 1990s. Samsung's construction branch was awarded contracts to build one of the two
Petronas Towers in Malaysia, Taipei 101 in Taiwan and the Burj Khalifa in United Arab Emirates. In 1993, Lee Kun-hee sold off ten of Samsung
Group's subsidiaries, downsized the company, and merged other operations to concentrate on three industries: electronics, engineering and
chemicals. In 1996, the Samsung Group reacquired the Sungkyunkwan University foundation.
Samsung became the world's largest producer of memory chips in 1992 and is the world's second-largest chipmaker after Intel . In 1995, it created
its first liquid-crystal display screen. Ten years later, Samsung grew to be the world's largest manufacturer of liquid-crystal display panels. Sony,
which had not invested in large-size TFT-LCDs, contacted Samsung to cooperate, and, in 2006, S-LCD was established as a joint venture between
Samsung and Sony in order to provide a stable supply of LCD panels for both manufacturers. S-LCD was owned by Samsung and Sony and
operates its factories and facilities in Tangjung, South Korea. As of 26 December 2011, it was announced that Samsung had acquired the stake of
Sony in this joint venture.
Compared to other major Korean companies, Samsung survived the 1997 Asian financial crisis relatively unharmed. However, Samsung Motor was
sold to Renault at a significant loss., Renault Samsung is 80.1 percent owned by Renault and 19.9 percent owned by Samsung. Additionally,
Samsung manufactured a range of aircraft from the 1980s to 1990s. The company was founded in 1999 as Korea Aerospace Industries, the result of
a merger between then three domestic major aerospace divisions of Samsung Aerospace, Daewoo Heavy Industries and Hyundai Space and Aircraft
Company. However, Samsung still manufactures aircraft engines and gas turbines.
2000 to present
In 2010, Samsung announced a ten-year growth strategy centered around five businesses.
On 24 August 2012, nine American jurors ruled that Samsung Electronics had to pay Apple $1.05 billion in damages for violating six of its patents
on smartphone technology. The award was still less than the $2.5 billion requested by Apple. The decision also ruled that Apple did not violate five
Samsung patents cited in the case. Samsung decried the decision saying that the move could harm innovation in the sector. It also followed a South
Korean ruling stating that both companies were guilty of infringing on each other's intellectual property. In first trading after the ruling, Samsung
shares on the Kospi index fell 7.7%, the largest fall since 24 October 2008, to 1,177,000 Korean won. Apple then sought to ban the sales of eight
Samsung phones in the United States which has been denied by the court.
In 2015, Samsung has been granted more U.S. patents than any other company - including IBM, Google, Sony, Microsoft and Apple. The company
received 7,679 utility patents through 11 December.
On 2 August 2016, Samsung Electronics unveiled the Galaxy Note7 smartphone, which went on sale on 19 August 2016. However, in early
September 2016, Samsung suspended sales of the phone and announced an informal recall. This occurred after some units of the phones had
batteries with a defect that caused them to produce excessive heat, leading to fires and explosions. Samsung replaced the recalled units of the phones
with a new version; however, it was later discovered that the new version of the Galaxy Note 7 also had the battery defect. Samsung recalled all
Galaxy Note7 smartphones worldwide on 10 October 2016, and permanently ended production of the phone the following day.
Acquisitions and attempted acquisitions
Samsung has made the following acquisitions and attempted acquisitions:
Rollei – Swiss watch battle
Fokker – Dutch aircraft maker
AST Research
FUBU – clothing and apparel
Lehman Brothers Holdings' Asian operations
MEDISON Co.,Ltd. – ultrasound monitors
Grandis Inc. – memory developer
Samsung and Sony joint venture – liquid crystal displays
mSpot, Inc – music service
NVELO, Inc. – cache software developer
NeuroLogica – portable CT scanner
SmartThings – home automation
Quietside – U.S. air conditioner firm
Proximal Data – data virtualization
LoopPay – U.S. mobile payments firm
YESCO Electronics – U.S.-based manufacturer of light emitting diode displays
Viv – intelligent personal assistant
Rich Communications Services – text messaging standard
Sold parts
Samsung Techwin
Samsung Techwin was listed on the Korea Exchange stock-exchange, with its principal activities being the development and manufacture of
surveillance, aeronautics, optoelectronics, automations and weapons technology. It was announced to be sold to Hanwha Group in December 2014
and the take-over completed in June 2015.
Samsung Thales
Samsung Thales Co., Ltd. was a joint venture between Samsung Techwin and the France-based aerospace and defence company Thales. It was
established in 1978 and is based in Seoul. Samsung's involvement was passed on to Hanwha Group as part of the Techwin transaction. It is highly
diversified, with activities in areas including construction, consumer electronics, financial services, shipbuilding and medical services. These
amounts do not include the revenues from all of Samsung's subsidiaries based outside South Korea.
Affiliates
As of April 2011, the Samsung Group comprised 59 unlisted companies and 19 listed companies, all of which had their primary listing on the Korea
Exchange.
Ace Digitech is listed on the Korea Exchange stock-exchange .
Cheil Industries is listed on the Korea Exchange stock-exchange .
Cheil Worldwide is listed on the Korea Exchange stock-exchange .
Credu is listed on the Korea Exchange stock-exchange .
Imarket Korea is listed on the Korea Exchange stock-exchange .
Samsung Card is listed on the Korea Exchange stock-exchange .
Samsung SDS is a multinational IT Service company headquartered in Seoul. It was founded in March 1985. Its principal activity is the providing
IT system. Samsung SDS is the Korea's largest IT service company. It achieved total revenues of 6,105.9 billion won in 2012.
Samsung C&T Corporation is listed on the Korea Exchange stock-exchange .
Samsung Electro-Mechanics, established in 1973 as a manufacturer of key electronic components, is headquartered in Suwon, Gyeonggi-do, South
Korea. It is listed on the Korea Exchange stock-exchange .
Samsung Electronics
Samsung Electronics is a multinational electronics and information technology company headquartered in Suwon and the flagship company of the
Samsung Group. Its products include air conditioners, computers, digital televisions, liquid crystal displays and active-matrix organic light-emitting
diodes, mobile phones, monitors, printers, refrigerators, semiconductors and telecommunications networking equipment. It is the world's largest
mobile phone maker by unit sales in the first quarter of 2012, with a global market share of 25.4%. It is also the world's second-largest
semiconductor maker by 2011 revenues .
Samsung Electronics is listed on the Korea Exchange stock-exchange .
Samsung Engineering
Samsung Engineering is a multinational construction company headquartered in Seoul. It was founded in January 1969. Its principal activity is the
construction of oil refining plants; upstream oil and gas facilities; petrochemical plants and gas plants; steel making plants; power plants; water
treatment facilities; and other infrastructure. It achieved total revenues of 9,298.2 billion won in 2011.
Samsung Engineering is listed on the Korea Exchange stock-exchange .
Samsung Everland
Samsung Everland covers the three main sectors of Environment & Asset, Food Culture and Resort.
Samsung Fine Chemicals
Samsung Fine Chemicals is listed on the Korea Exchange stock-exchange .
Samsung Fire & Marine Insurance
Samsung Fire & Marine Insurance is a multinational general insurance company headquartered in Seoul. It was founded in January 1952 as Korea
Anbo Fire and Marine Insurance and was renamed Samsung Fire & Marine Insurance in December 1993. Samsung Fire & Marine Insurance offers
services including accident insurance, automobile insurance, casualty insurance, fire insurance, liability insurance, marine insurance, personal
pensions and loans. As of March 2011 it had operations in 10 countries and 6.5 million customers. Samsung Fire & Marine Insurance had a total
premium income of $11.7 billion in 2011 and total assets of $28.81 billion on 31 March 2011. It is the largest provider of general insurance in South
Korea. Samsung Fire has been listed on the Korea Exchange stock-exchange since 1975 . It achieved total revenues of 13,358.6 billion won in 2011
and is the world's second-largest shipbuilder by revenues .
Samsung Heavy Industries is listed on the Korea Exchange stock-exchange .
Samsung Life Insurance
Samsung Life Insurance Co., Ltd. is a multinational life insurance company headquartered in Seoul. It was founded in March 1957 as Dongbang
Life Insurance and became an affiliate of the Samsung Group in July 1963. Samsung Life's principal activity is the provision of individual life
insurance and annuity products and services. As of December 2011 it had operations in seven countries, 8.08 million customers and 5,975
employees.
Samsung Medical Center
The Samsung Medical Center was founded on 9 November 1994, under the philosophy of "contributing to improving the nation's health through the
best medical service, advanced medical research and development of outstanding medical personnel". The Samsung Medical Center consists of a
hospital and a cancer center. The hospital is located in an intelligent building with floor space of more than 200,000 square meters and 20 floors
above ground and 5 floors underground, housing 40 departments, 10 specialist centers, 120 special clinics and 1,306 beds.
The 655-bed Cancer Center has 11 floors above ground and 8 floors underground, with floor space of over 100,000 square meters. SMC is a tertiary
hospital manned by approximately 7,400 staff including over 1,200 doctors and 2,300 nurses. Since its foundation, the Samsung Medical Center has
successfully incorporated and developed an advanced model with the motto of becoming a "patient-centered hospital", a new concept in Korea.
Samsung SDI
Samsung SDI is listed on the Korea Exchange stock-exchange . On 5 December 2012, the European Union's antitrust regulator fined Samsung SDI
and several other major companies for fixing prices of TV cathode-ray tubes in two cartels lasting nearly a decade. SSDI also builds lithium-ion
batteries for electric vehicles such as the BMW i3, and acquired Magna Steyr's battery plant near Graz in 2015. SSDI began using the "21700" cell
format in August 2015. Samsung plans to convert its factory in Göd, Hungary to supply 50,000 cars per year.
Samsung Securities
Samsung Securities is listed on the Korea Exchange stock-exchange .
Samtron
Samtron was a subsidiary of Samsung until 1999 when it became independent. After that, it continued to make computer monitors and plasma
displays until 2003, Samtron became Samsung when Samtron was a brand. In 2003 the website redirected to Samsung.
Shilla Hotels and Resorts
Hotel Shilla opened in March 1979, following the intention of the late Lee Byung-chull, the founder of the Samsung Group. Hosting numerous state
visits and international events, it has played the role of locomotive for the service industry in Korea with pride and responsibility as "the face
representing the Samsung Group" and "the hotel representing Korea". Hotel Shilla maintains elegance and a tradition of winning guests' hearts with
the aim of becoming "the best hospitality company". By joining LHW, it is on par with the most luxurious hotels in the world. Meanwhile, it has
added modernistic design elements on top of the roof called tradition, thus going through changes to make itself a premium lifestyle space. In
addition, with its know-how as a service company in the background, it started a duty-free shop business, and has built its image as the best global
distribution company. Also, it is expanding its business into commissioned management of fitness facilities with five-star hotels in Korea and abroad
as well as into the restaurant business. Hotel Shilla promises to be a globally prestigious hospitality company that offers the best value for money by
making creative innovations and continuously taking on challenges. Shilla Hotels and Resorts is listed on the Korea Exchange stock-exchange .
S-1 Corporation
S-1 was founded as Korea's first specialized security business in 1997 and has maintained its position at the top of industry with the consistent
willingness to take on challenges. S1 Corporation is listed on the Korea Exchange stock-exchange .
Joint ventures
State-run Korea Agro-Fisheries Trade Corp. set up the venture, aT Grain Co., in Chicago, with three other South Korean companies, Korea Agro-
Fisheries owns 55 percent of aT Grain, while Samsung C&T Corp, Hanjin Transportation Co. and STX Corporation each hold 15 percent.
Brooks Automation Asia Co., Ltd. is a joint venture between Brooks Automation and Samsung which was established in 1999. The venture locally
manufactures and configure vacuum wafer handling platforms and 300mm Front-Opening Unified Pod load port modules, and designs,
manufactures and configures atmospheric loading systems for flat panel displays.
Company POSS – SLPC s.r.o. was founded in 2007 as a subsidiary of Samsung C & T Corporation, Samsung C & T Deutschland and the company
POSCO.
Samsung Air China Life Insurance is a 50:50 joint venture between Samsung Life Insurance and China National Aviation Holding. It was
established in Beijing in July 2005.
Samsung Biologics will be jointly owned. Samsung Electronics Co. and Samsung Everland Inc. will each own a 40 percent stake in the venture,
with Samsung C&T Corp. and Durham, North Carolina-based Quintiles each holding 10 percent. It will contract-make medicines made from living
cells, and Samsung Group plans to expand into producing copies of biologics including Rituxan, the leukemia and lymphoma treatment sold by
Roche Holding AG and Biogen Idec Inc.
Samsung Bioepis is a joint venture between Samsung Biologics and the U.S.-based Biogen Idec . In 2014, Biogen Idec agreed to commercialize
future anti-TNF biosimilar products in Europe through Samsung Bioepis.
Samsung BP Chemicals, based in Ulsan, is a 49:51 joint venture between Samsung and the UK-based BP, which was established in 1989 to produce
and supply high-value-added chemical products. Its products are used in rechargeable batteries and liquid crystal displays.
Samsung Corning Precision Glass is a joint venture between Samsung and Corning, which was established in 1973 to manufacture and market
cathode ray tube glass for black and white televisions. The company's first LCD glass substrate manufacturing facility opened in Gumi, South
Korea, in 1996.
Samsung Sumitomo LED Materials is a Korea-based joint venture between Samsung LED Co., Ltd., an LED maker based in Suwon, Korea-based
and the Japan-based Sumitomo Chemical. The JV will carry out research and development, manufacturing and sales of sapphire substrates for
LEDs.
SB LiMotive is a 50:50 joint company of Robert Bosch GmbH and Samsung SDI founded in June 2008. The joint venture develops and
manufactures lithium-ion batteries for use in hybrid-, plug-in hybrid vehicles and electric vehicles.
SD Flex Co., Ltd. was founded on October 2004 as a joint venture corporation by Samsung and DuPont, one of the world's largest chemical
companies.
Sermatech Korea owns 51% of its stock, while Samsung owns the remaining 49%. The U.S. firm Sermatech International, for a business
specializing in aircraft construction processes such as special welding and brazing.
Siam Samsung Life Insurance: Samsung Life Insurance holds a 37% stake while the Saha Group also has a 37.5% stake in the joint venture, with the
remaining 25% owned by Thanachart Bank.
Siltronic Samsung Wafer Pte. Ltd, the joint venture by Samsung and wholly owned Wacker Chemie subsidiary Siltronic, was officially opened in
Singapore in June 2008.
SMP Ltd. is a joint venture between Samsung Fine Chemicals and MEMC. MEMC Electronic Materials Inc. and an affiliate of Korean
conglomerate Samsung are forming a joint venture to build a polysilicon plant.
Steco is the joint venture established between Samsung Electronics and Japan's Toray Industries in 1995.
Stemco is a joint venture established between Samsung Electro-Mechanics and Toray Industries in 1995.
Toshiba Samsung Storage Technology Corporation is joint venture between Samsung Electronics and Toshiba of Japan which specialises in optical
disc drive manufacturing. TSST was formed in 2004, and Toshiba owns 51% of its stock, while Samsung owns the remaining 49%.
Defunct
In 1998, Samsung created a U.S. joint venture with Compaq—called Alpha Processor Inc. --to help it enter the high-end processor market. The
venture was also aimed at expanding Samsung's non-memory chip business by fabricating Alpha processors. At the time, Samsung and Compaq
invested $500 million in Alpha Processor.
GE Samsung Lighting was a joint venture between Samsung and the GE Lighting subsidiary of General Electric. The venture was established in
1998 and was broken up in 2009.
Global Steel Exchange was a joint venture formed in 2000 between Samsung, the U.S.-based Cargill, the Switzerland-based Duferco Group, and the
Luxembourg-based Tradearbed, to handle their online buying and selling of steel.
S-LCD Corporation was a joint venture between Samsung Electronics and the Japan-based Sony Corporation which was established in April 2004.
On 26 December 2011, Samsung Electronics announced that it would acquire all of Sony's shares in the venture.
Partially owned companies
Atlântico Sul
Samsung Heavy Industries owns 10% of the Brazilian shipbuilder Atlântico Sul, whose Atlântico Sul Shipyard is the largest shipyard in South
America. The Joao Candido, Brazil's largest ship, was built by Atlântico Sul with technology licensed by Samsung Heavy Industries. The companies
have a technical assistance agreement through which industrial design, vessel engineering and other know-how is being transferred to Atlântico Sul.
DGB Financial Group
Samsung Life Insurance currently holds a 7.4% stake in the South Korean banking company DGB Financial Group, making it the largest
shareholder.
Corning Inc.
Samsung acquired 7.4% of Gorilla Glass maker Corning, signing a long-term supply deal.
Doosan Engine
Samsung Heavy Industries currently holds a 14.1% stake in Doosan Engine, making it the second-largest shareholder.
Korea Aerospace Industries
Samsung Techwin currently holds a 10% stake in Korea Aerospace Industries . Other major shareholders include the state-owned Korea Finance
Corporation, Hyundai Motor and Doosan .
MEMC KOREA
MEMC's joint venture with Samsung Electronics Company, Ltd. In 1990, MEMC entered into a joint venture agreement to construct a silicon plant
in Korea.
Pantech
Samsung buys 10% stake in rival phone maker Pantech.
Rambus Incorporated
Samsung currently owns 4.19% of Rambus Incorporated.
Renault Samsung Motors
Samsung currently owns 19.9% of the automobile manufacturer Renault Samsung Motors.
Seagate Technology
Samsung currently owns 9.6% of Seagate Technology, making it the second-largest shareholder. Under a shareholder agreement, Samsung has the
right to nominate an executive to Seagate's Board of Directors.
Sharp Corporation
Samsung owns 3% of Sharp Corporation, a rival company.
SungJin Geotec
Samsung Engineering holds a 10% stake in Sungjin Geotec, an offshore oil drilling company that is a subsidiary of POSCO.
Taylor Energy
Taylor Energy is an independent American oil company that drills in the Gulf of Mexico based in New Orleans, Louisiana. Samsung Oil & Gas
USA Corp., subsidiaries of Samsung, currently owns 20% of Taylor Energy.
Wacom
Samsung owns 5% of Wacom.
Major clients
Major clients of Samsung include:
Royal Dutch Shell
United Arab Emirates government
Ontario government
Corporate image
The basic color in the logo is blue, which Samsung has employed for years, supposedly symbolizing stability, reliability and corporate social
responsibility.
Audio logo
Samsung has an audio logo, which consists of the notes E♭, A♭, D♭, E♭; after the initial E♭ tone it is up a perfect fourth to A♭, down a
perfect fifth to D♭, then up a major second to return to the initial E♭ tone. The audio logo was produced by Musikvergnuegen and written by
Walter Werzowa.
Font
In July 2016, Samsung unveiled its SamsungOne font, a typeface that hopes to give a consistent and universal visual identity to the wide range of
Samsung products. SamsungOne was designed to be used across Samsung's diverse device portfolio, with a focus on legibility for everything from
smaller devices like smartphones to larger connected TVs or refrigerators, as well as Samsung marketing and advertisements. The font family
supports 400 different languages through over 25,000 characters.
Samsung Medical Center
Samsung donates around US$100 million per annum to the Samsung Medical Center, a non-profit healthcare provider founded by the group in
1994. Samsung Medical Center incorporates Samsung Seoul Hospital, Kangbook Samsung Hospital, Samsung Changwon Hospital, Samsung
Cancer Center and Samsung Life Sciences Research Center. The Samsung Cancer Center, located in Seoul, is the largest cancer center in Asia.
Samsung Medical Center and pharmaceutical multinational Pfizer have agreed to collaborate on research to identify the genomic mechanisms
responsible for clinical outcomes in hepatocellular carcinoma.
Sponsorships
Samsung Electronics spent an estimated $14 billion on advertising and marketing in 2013. At 5.4% of annual revenue, this is a larger proportion
than any of the world's top-20 companies by sales . Samsung became the world's biggest advertiser in 2012, spending $4.3 billion, compared to
Apple's $1 billion. Samsung's global brand value of $39.6 billion is less than half that of Apple.
Controversies
Financial scandals
In 2007, former Samsung chief lawyer Kim Yong Chul claimed that he was involved in bribing and fabricating evidence on behalf of the group's
chairman Lee Kun-hee and the company. Kim said that Samsung lawyers trained executives to serve as scapegoats in a "fabricated scenario" to
protect Lee, even though those executives were not involved. Kim also told the media that he was "sidelined" by Samsung after he refused to pay a
$3.3 million bribe to the U.S. Federal District Court judge presiding over a case where two of their executives were found guilty on charges related
to memory chip price fixing. Kim revealed that the company had raised a large amount of secret funds through bank accounts illegally opened under
the names of up to 1,000 Samsung executives—under his own name, four accounts were opened to manage 5 billion won.
Antitrust concerns
"You can even say the Samsung chairman is more powerful than the President of South Korea. Korean people have come to think of Samsung as
invincible and above the law", said Woo Suk-hoon, host of a popular economics podcast in a Washington Post article headlined "In South Korea, the
Republic of Samsung", published on 9 December 2012. Critics claimed that Samsung knocked out smaller businesses, limiting choices for South
Korean consumers, and sometimes colluded with fellow giants to fix prices while bullying those who investigate. Lee Jung-hee, a South Korean
presidential candidate, said in a debate, "Samsung has the government in its hands. Samsung manages the legal world, the press, the academics and
bureaucracy".
Viral marketing
The Fair Trade Commission of Taiwan is investigating Samsung and its local Taiwanese advertising agency for false advertising. The case was
commenced after the Commission received complaints stating that the agency hired students to attack competitors of Samsung Electronics in online
forums. Samsung Taiwan made an announcement on its Facebook page in which it stated that it had not interfered with any evaluation report and
had stopped online marketing campaigns that constituted posting or responding to content in online forums.
Labor abuses
Samsung was the subject of several complaints about child labor in its supply chain from 2012 to 2015.
In July 2014, Samsung cut its contract with Shinyang Electronics after it received a complaint about the company violating child labor laws.
CLW issued a statement in August 2014 claiming that HEG employed over ten children under the age of 16 at a factory in Huizhou, Guangdong.
The group said the youngest child identified was 14 years old. Samsung said that it conducted an onsite investigation of the production line that
included one-on-one interviews but found no evidence of child labor being used. CLW responded that HEG had already dismissed the workers
described in its statement before Samsung's investigators arrived.
CLW also claimed that HEG violated overtime rules for adult workers. CLW said a female college student was only paid her standard wage despite
working four hours of overtime per day even though Chinese law requires ovetime pay at 1.5 to 2.0 times standard wages.
In Canada, during 1999, some DRAM micro chip manufacturers conspired to price fix, among the accused included Samsung. The price fix was
investigated in 2002. A recession started to occur that year, and the price fix ended; however, in 2014, the Canadian government reopened the case
and investigated silently. Sufficient evidence was found and presented to Samsung and two other manufacturers during a class action lawsuit
hearing. The companies agreed upon a $120 million agreement, with $40 million as a fine, and $80 Million to be paid back to Canadians who
purchased a computer, printer, MP3 player, gaming console or camera from April 1999 to June 2002.
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