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sheer power in Korea and internationally,
than its closest competitors. This Korean
giant eats the lunch of its nearest competi-
tors in DRAM and NAND.
20% of S. Korea’s exports
According to Etonomics, Samsung is Ko-
rea’s largest exporter with about a 20%
share. The company is so powerful, its
brand, Samsung, which means Three
Stars, is virtually a synonym for home ap- While Samsung’s offshore U.S. fabs are located in Texas, the gi-
pliances and smartphones worldwide. ant’s USA headquarters are in San Jose, Calif. This is the atrium.
(Samsung)
Company headquarters moved several
Samsung was founded times after its founding, including an ex-
in 1938 as the Sam- pansion in 1947 to the capital, Seoul.
sung trading company When the Korean Conflict began in 1950,
by Lee Byung-chul Samsung left Seoul. Headquarters now
(left), the youngest of are in Suwon, Korea, about a dozen miles
four siblings. He at- from Seoul.
tended Waseda Univer-
sity in Tokyo, but did Sugar mill
not graduate. After hostilities ceased in 1953, Chair-
According to “The History of Samsung,” man Lee started a sugar refinery in Busan,
Lee founded Samsung with only about $27 Korea, which marked Samsung’s first sub-
in Taegu, Korea. The company began with sidary company. He rapidly added insur-
40 employees and sold dried Korean fish, ance, securities and textiles.
noodles and vegetables. next page
What is a chaebol? Next, chaebols must do business in a min-
imum of two disparate areas. Although
According to etonomics.com, in Korea, the Samsung Group is primarily known for
there are three main factors that deter- Samsung Electronics, it owns a large
mine whether a company is a chaebol or number of subsidiary companies that
just a large conglomerate. operate in businesses that range from life
insurance to shipbuilding.
“Dynastic”
First, a chaebol must be “dynastic” in Finally, Etonomics says, chaebols almost
leadership and structure. The chairman always have complex cross-shareholding
serves as an “omnipotent patriarch, who structures that ensure ownership and con-
wields absolute power.” Within chaebols, trol are maintained by the ruling family.
key management posts are nearly always The second largest Korean chaebol is
held by relatives of the chairman. Hyndae Motors.
