Challenge ASN NULREPORT ANNUAL SAMSUNG 1995

ETN THE MEETING Challenge ASN NULREPORT ANNUAL SAMSUNG 1995

MEETINGTHE challenge

SAMSUNG ANNUALREPORT http://www.samsung.com 1995

Office of the Samsung Samsung Samsung Samsung Samsung Executive Staff North America Inc. Europe Headquarters Asia Headquarters China Headquarters Japan Corporation 26th floor 105 Challenger Road Great West House 80 Robinson Road Room 909 15F Hamacho Center Samsung Main Building Ridgefield Park, Great West Road No. 21-01 China World Trade Building 250, 2-ga, New Jersey 07660 Brentford Singapore 068898 Center No. 1 2-31-1, Nihonbashi- Taepyung-ro, Chung-gu USA Middlesex TW8 9DQ Tel: 65-225-5868 Jian Guo Men Wai Hamacho Chuo-ku Seoul, South Korea Tel: 1-201-229-7000 UK Fax: 65-227-9662 Avenue Tokyo 103 Japan Tel: 82-2-751-2082 Fax: 1-201-229-7030 Tel: 44-181-380-7000 Beijing, China 100004 Tel: 81-3-5641-9806 Fax: 82-2-751-2083 Fax: 44-181-380-7020 Tel: 86-10-6505-2208 Fax: 81-3-5641-9854 Fax: 86-10-6505-1671 All Samsung products Published by: Printed by: Photography by: Written Produced by: and services mentioned Office of the Executive Samsung Moonwha Eric Myer and edited by: Addison Design Company in this publication Staff of the Samsung group Printing Co. Scott Morgan Jim Dulicai New York are the property of in coordination with Seoul, Korea the Samsung Group. Cheil Communications Inc. Welcome. SAMSUNG TOUCHES LIVES EVERYWHERE. WE INVITE YOU TO SEE HOW THE WORLD’S HOPES AND NEEDS CHALLENGE OUR CREATIVITY AND COMMITMENT…AND HOW SAMSUNG’S UNIQUE VISION, WORLD-CLASS INNOVATION AND GLOBAL GROWTH WILL MAKE US ONE OF THE WORLD’S TOP 10 COMPANIES BY THE YEAR 2000. WELCOME TO THE WORLD OF SAMSUNG. page 6

The hinoki and the pine: ge An14 essay about growing value at Samsung. p.13

Innovation: Samsung’s challenging 360° viewpoint In products, technologies and strategies, innovation is key to our success. And Samsung’s key to innovation is our panoramic perspective–viewing every multifaceted aspect of a situation, inside and out, interconnected, globally, without limits. That 360° viewpoint pays off not only in energizing Samsung’s innovations,pag but in exciting our employees, partners and customers as well. p.30 Vision: The world challenges us to succeed Chairman Kun-Hee Lee outlines his unique vision and the profound challenges that are rapidly transforming Samsung for a new era of unrivaled global competition: “Only the best companies–the most innovatively responsive to the needs of customers and the most honestly responsible to the needs of society–will thrive. Samsung will be one of the best.” p.6 page 13

Globalization: Challenges for the 21st century corporation As the world challenges us with its diverse needs, we grow globally by growing closer to each region–a proactive strategy of globalization combined with localization. In this “global village,” the ubiquitous need is for quality. How do we know? Samsung listens. And delivers. p.14 g 30 age Samsung is: A new Samsung for a new era Take a close-up look at the key components of Samsung–our Electronics, Machinery, Chemicals and Finance Subgroups, and other Samsung companies. Their operations and 1995 results paint a vivid picture of Samsung’s overall strength for continued success in the 21st century. p.64

Financial & Operating Highlights □ With 233,000 employees and 340 offices and facilities in 66 countries, Samsung ranks as one of the world’s largest companies. □ 1995 sales climbed 36% to a record $87 billion. □ Net income more than doubled, to $3.8 billion in 1995, after more than tripling in 1994. □ Return on stockholders’ equity jumped to 23% in 1995 from 16% in 1994. □ Across the board, we’re accelerating toward our goal of becoming one of the world’s top 10 85 companies by the year 2000. Where to find us: A directory of our offices Our worldwide network includes a global matrix of our regional headquarters and a company-by-company directory to help you find your way through the world of Samsung. We welcome you in all our 340Pag locations around the world p.90 Commitment: Traditional values, new responsibilities Contributing to society through business activities, as with our environmentally friendly Green Management, is the only way a 21st century company can earn the public’s trust. We touch many lives with programs for social welfare, culture, the arts and education. The men and women of Samsung give 46richly of themselves to meet the challenges we set ourselves as a company that puts its humanity into practice. p.46 page 64

Financial Information: We’re one of the world’s largest companies –and growing. p.85 ge 90 Vis ion:The world challenges us to succeed 0UR TARGET IS TO MAKE SAMSUNG ONE OF THE WORLD’S TOP 10 COMPANIES BY THE YEAR 2000. HOW? BY MEETING THE CHALLENGES OF CUSTOMERS EVERYWHERE. THAT MEANS PUTTING QUALITY FIRST, TODAY. FOCUSING ON SAMSUNG’S GLOBAL GROWTH IN STRATEGIC BUSINESS AREAS FOR TOMORROW. AND REMEMBERING THE PEOPLE AND COMMUNITIES WE SERVE, ALWAYS. FOR THE WORLD OFFERS CHALLENGES THAT DRIVE US TO SUCCEED, AS YOU’LL SEE....

AN ESSAY ON

VISION BY

KUN-HEE LEE,

CHAIRMAN OF

SAMSUNG

The challenge that unleashes the energy of Samsung is the world and all its needs that our growing company can satisfy. This 21st century vision drives us: We will build a new Samsung for a new era. We will devote our people and technology to create superior products and services, thereby contributing to a better global society. We will make Samsung one of the world’s top 10 companies by the year 2000. We are accelerating our drive. Though 1995’s business performance was our best ever, 1995 also brought a new era of unrivaled global competition. Only the strong will survive, especially when economic conditions are less favorable. Only the best companies–the most innovatively responsive to the needs of customers and the most honestly responsible to the needs of society–will thrive. Samsung will be one of the best. We began asking years ago, where do we really impress customers? What are our unique strengths, best-in-the-world

9 technologies? How many of our businesses and products are truly first-rate–globally? Are we growing internationally as fast as we must, and in the right places? We listened, and learned to abandon old habits–like quantity as our historical measure of success. Today a company that doesn’t focus on quality has little future. Hence our “Quality First” business priority is not only a challenge; it’s a no-compro- mise focus of our everyday work–and essential to our growing number of “World’s Best” products. Worldwide, we’re upgrading our business so each component is mutually enhanced and contributes to a greater whole. We’ve merged more units to strengthen competitiveness,shed others to focus on high-growth businesses like aerospace, telecommunications, retailing. And especially the automobile business: In 1995, we established Samsung Motors and drew on our diverse strengths, aiming to open the complete car market.

10 WE WILL BUILD A NEW SAMSUNG FOR A NEW ERA. WE WILL

DEVOTE OUR PEOPLE AND TECHNOLOGIES TO CREATE SUPERIOR

PRODUCTS AND SERVICES, THEREBY CONTRIBUTING TO

A BETTER GLOBAL SOCIETY. WE WILL MAKE SAMSUNG ONE OF

THE WORLD’S TOP 10 COMPANIES BY THE YEAR 2000.

Our reorganization and acquisitions focus today’s four core industries–Electronics, Machinery, Chemicals and Finance–on tomorrow’s technologies and strategic businesses. Our success in multimedia, for example, is speeding us toward the interactive information superhighway. We’re also accelerating globalization and localization– challenged by varying needs around the world and shifting more operations overseas, closer to local markets. In 1995, we established the fifth regional entity in a new “Second Samsung” level of increasingly autonomous regions: Europe, North America, Japan, China and now Singapore for Southeast Asia. We are changing profoundly for a rapidly emerging new era in which corporations offer not just products–but intellectual assets, philosophy, culture. A new era that transcends two-dimensional thinking; not just a flat-world“game board”on which companies move pieces faster, to new targets–but thinking three-dimensionally

11 of new ways of operating, new Samsung synergies. A new era in which top companies focus on more than the bottom line–earning the customer’s trust, respecting society’s needs, valuing the employees who share the vision. I have confidence in the men and women of Samsung to meet the opportunity of the 21st century: the world itself. Its challenges drive us to succeed.

THE HINOKI AND THE PINE

AN ESSAY ABOUT

GROWING VALUE at SAMSUNG

Consider the hinoki tree–a Sometimes a long wait is the varieties we favor (metaphori- rare beauty, slowly matured, of worth the while: Woodworkers cally speaking) continually grow in extraordinary and enduring value. value the hinoki’s highly aromatic value– a profit we can harvest over It’s a model for a burgeoning, and long-lasting wood for fine cabi- and over while the hinokis of our global Samsung. So is the prosaic netry, and they value their hinoki world slowly mature. pine tree. products highly: A simple cutting What we won’t do is invest in You’ll find the towering, cone- board can cost $30,000. commodity products whose slow shaped hinoki false cypress (Cha- So we take the hinoki as a growth and limited potential for maecyparis obtusa) rising to its full model for planning high-value, added value make them little better height of 30 meters (100 feet) only long-term growth. It challenges than deadwood to us. in one region of Japan known for us to look far ahead in assessing For Samsung’s high-value its heavy rainfall. You too may prize future markets and the value of our growth far into the future, our plan- the impressive form, the sprays of products in them. ning horizons comprehend the best tiny brown cones, the reddish bark On the other hand, sometimes economics–long-term or short,hinoki that peels off in long, thin strips. you can’t afford a long wait. So we or pine. We grow in many ways to But you’ll have to wait a century for also take the pine as a model for meet the world’s challenges. a hinoki, which grows no more than valuable growth. Pine trees don’t 25 centimeters (10 inches) a year, require much investment, or much to attain its full stature. care after the first few years; yet Global ization:Challenges for the 21st century corporation EVERY HEARTBEAT, EVERY MINUTE OF EVERY DAY, THE WORLD’S HOPES AND NEEDS CHALLENGE SAMSUNG. AND AS THE WORLD DRIVES US, WE EMBRACE IT WITH A PROACTIVE STRATEGY OF GLOBALIZATION LINKED WITH LOCALIZATION: TO BUILD GLOBAL STRENGTH, LISTEN TO AND BUILD UP KEY LOCAL AREAS. INCREASE COMMUNICATIONS AND AUTONOMY. EMPOWER EMPLOYEES OF EVERY RACE AND CULTURE. ENRICH THE LIVES OF PEOPLE EVERYWHERE. NOW, FEEL THE PULSE OF SAMSUNG WITH SOME PRIME MOMENTS OUT OF ONE DAY IN THE LIFE OF A UNIQUELY DIVERSE COMPANY AROUND THE WORLD.... and computer monitors, and will add a training center in 1996. A second stage of development to add an R&D center and other products will enhance 7:29our presence in Europe, one of Samsung’s five key regions worldwide. We’ve also bought a site in London to build our headquarters for Europe. 17 Samsung Wynyard Park, opened in October 1995 by Queen Elizabeth II, helps us build global strength by concentrating operations in the most Wynyardimportant areas. This $700 million integrated complex in the north of England began its manufacturing activities with microwave17 ovens (above) 16 contracts –including a waste-water project, a gas-separation plant, a lube-oil-based plant and an office building that will be Thailand’s tallest–add to Samsung’s ownBangkok extensive operations in that nation. All these collectively won us “The Prime Minister Award” for 1995 as the best company in Thailand.14:

19 Samsung, unrivaled in cost competitiveness and technological expertise for ethylene plants, is completing this $350 million facility in southeastern Thailand for Thai Petrochemical Industrial Co.Thailand is one of the economic tigers in our key Southeast Asia region, and such construction :02 18 BucharestSamsung’s “brand shop” in Bucharest, like those in Budapest 9:41 and elsewhere, sells Samsung products exclusively and showcases our worldwide reputation for quality. In only three years, Samsung grew to second in Rumania’s TV market with a 22% share.

20 SETTING UP SHOPS IN THE GLOBAL VILLAGE

an essay about samsung’s global challenge for the 21st century

“Global village.” It’s the challenging manufacturing complex in Mexico. Being smart also matters a lot–like thought of one totally wired, com- Our name’s on the front of the Samsung’s developing next-gener- pletely interconnected, media- first Korean truck to cross Siberia; ation technologies before the last

age planet. Imagine everybody on some of the world’s best exca- generation has grown up. Staying instantly able to know anything– vators, bulldozers and loaders,and ahead also calls for smart partners useful data, billions of neighbors’ on the fastest 2000 cc Prototype II and smart strategies. gossip, everything. It’s almost racing machine at Japan’s 1995 And the smartest idea of all,

here, this see-it-now global village, POKKA International 1000K. we feel, in this world of listen-to-us increasingly wireless, soon two- Samsung’s responsible for the corporate credos, is to listen to you, way and interactive. most luxurious wool fabric and the our customers and partners, and And Samsung is a pioneer finest silk carpet on the planet–113 the world’s diverse needs.

along this information superhigh- million knots, tied by machine. Our global strategy recog- way. In fact, Samsung’s diverse Samsung’s inside the 120 ad- nizes that there isn’t one global technologies and resources have vanced F-16s we’re building for market any more than there’ll be

already helped make us a global South Korea, and probably inside one world car for both autobahn leader in many industries: that new notebook PC you’ll soon and still developing roads.You can Samsung builds the world’s be using. count the number of different volt- biggest container ships and the Such superlatives suggest ages,broadcast standards, even world’s best very large crude-oil continued Samsung success in the languages to interconnect the carriers, with double-hull protec- 21st century. But are they enough? global village, but it’s still a huge tion for fragile marine ecosystems. Even the most exciting companies place, fractured into countless The Samsung ellipse brightens may eventually get tired, or taken communities. With billions of developing economies–shining, over. The world’s rapid change and discrete,overlapping, conflicting, for example, over the best factory in now virtually unrestrained com- changing consumer preferences. Thailand, the largest department petition require size and strength So how do you manage a world- store in Rumania and a huge new and stability–and more–to survive. wide corporation for the 21st cen-

21 tury? Globally.Regionally.Locally. completed in 1995, an increasingly Proactively. As Samsung does. autonomous “Second Samsung” Global: We’re one of the world’s level inTokyo for Japan,Beijing for largest corporations, with China, Singapore for Southeast 1995 sales of $87 billion, Asia, London for Europe,

IN KIHEUNG, KOREA, SEMI- 233,000 men and wo- and NewYork for North CONDUCTOR RESEARCH AND men, and 340 facili- America.These are stra- DEVELOPMENT PROMISES CONTINUED SAMSUNG LEAD- ties in 66 countries. tegic,integrated regions. ERSHIP IN NEXT-GENERATION $ PRODUCTS WORLDWIDE. We invested 9.7 bil- Take, for instance, lion last year to remain a what’s becoming the largest leader.And we’re restructuring investment in Europe by a Korean to become one of the world’s top company, the U.K.’sSamsung 10 companies by the year 2000. Wynyard Park that we started in Example: The synergy of a Janu- 1995 with computer monitors and ary 1996 merger that combined microwave ovens; later we’ll inte- Samsung Corporation’s fin- grate other products and an ance, marketing and R&D center, then a sec-

CAMERAS FOR THE WORLD’S data-gathering ond huge European LARGEST GROWTH MARKET strengths with complex by the year COME FROM OUR INTEGRATED FACILITY IN TIANJIN, CHINA, Samsung Engineer- 2000.Electronics ser- ALONG WITH TVS, VCRS AND ELECTRONICS PARTS. ing & Construction’s vicing also is integrated expertise in technology and into a single system that sup- project management–enhancing ports controlling market shares our overall competitiveness for like fax machines in the U.K., major construction jobs worldwide. VCRs in Spain, cordless phones in Around the world, we’re tar- Austria and color TVs in Hungary. geting the biggest markets, procur- Warranty cards come in seven ing resources and siting manu- languages. facturing for the best econo- In China, we’re building a

OPENING A NORTH YORKSHIRE, mics,accelerating our “Second Samsung”around ENGLAND, PLANT IN 1995 global sales network an integrated complex ENHANCES SAMSUNG’S PRESENCE IN THE EU MARKET FOR HEAVY and building a sin- in Tianjin and another EQUIPMENT LIKE EXCAVATORS, LOADERS AND FORKLIFTS. gle, group-wide system begun in 1995 in Suzhou, for real-time access to infor- where we also broke ground mation. In 1995, for example, 19 for our first non-memory device Samsung Electronics plants in assembly plant outside Korea. 11 countries employed 11,000. By China is, of course, the biggest 2000, our plans are to increase single market in the global village, those figures to include 60 plants and we’re China’s biggest camera in 21countries employing 50,000. seller and VCR maker(sales up115% Regional:We’re managing through last year). We’re building a color-TV a system of regional headquarters picture-tube plant and a largescale

22 material-handling system, pro- and barbecue: Incongruous? Not viding hardware for China’s optical at all. Both were part of the Texas network, sourcing materials for ceremonies. And at Samsung, shipbuilding, and discussing much more than symbolism joint development of air- is at work in the sub-

liners and other projects. stance of integrating OUR COLON, PANAMA, DISTRIBUTION CENTER You’ll find our service our local sites and SUPPLIES PARTS AND centers throughout the helping develop their TECHNICAL ASSISTANCE TO 18 NATIONS IN provinces, and 24-hour economies. Samsung THE HIGH-GROWTH service in Beijing. Tijuana, unlike some com- LATIN AMERICAN MARKET. In India, we’ve begun a $630 panies that simply use local labor, million investment,and we’re open- will get 90% of all its materials ing plants in Malaysia, Thailand, locally in four years.This same Vietnam and other high-growth principle is at work at Wynyard in Asian markets. Europe,and in China, and around InNorth America, our newest the globe.

multiplant site came Samsung also contin- A EUROPEAN TRAINING CENTER OPENED IN 1995 AT on line in March 1996 ues to grow outside TELFORD, ENGLAND, BRINGS in Tijuana, Mexico– these integrated lo- UP-TO-THE-MINUTE TECHNOLOGY FOR SERVICE close to the U.S., which cal regions: coal in INSTRUCTORS FROM will get 75% of its pro- Australia, an oil dis- ACROSS EUROPE. duction. This $200 million facility covery in Algeria, a construction employs 2,300 people to make contract in Russia, a TV-VCR plant color TVs,TV-VCRs, color picture in Brazil, a distribution center in tubes, tuners, cameras and other Panama, a marketing unit in South products.With another 7,000 peo- Africa, inroads into telecommu- ple and $600 million more in- nications markets in Syria and vestment, we’ll add products throughout the Mideast…. and generate $3 bil- To grow globally requires

lion in annual sales by international financial SAMSUNG’S “WORLD’S BEST” SERVICE PROGRAM INCLUDES the year 2000. expertise, as with 1995’s NOT ONLY CENTERS LIKE Bigger still,and debt offerings in cur- THIS ONE IN TIANJIN AND OTHER CHINESE CITIES, only one day before rencies from German to BUT ALSO MOBILE UNITS Samsung Tijuana Park Malaysian, plus Global IN THE PROVINCES. opened, we broke ground across Depository Receipts. Samsung the border in Texas for a $1.3 billion Securities has new offices in New plant that in 1997 will start making York,Hong Kong and Tokyo,and advanced semiconductor products Samsung Japan plans a listing like 16- and 64-megabit dynamic on the Tokyo Stock Exchange. random access memory chips. Of course, at home we’re Local: Picture a Korean drum-and- Korea’s biggest corporation, and dance troupe at a cowboy rodeo twice chosen as one of Asia’s best.

23 We’re the largest systems inte- tions to connect the global village. grator, camera maker, heavy-equip- Nothing is more important to ment manufacturer, and life insur- our value-added growth than our ance company and the first in global research and development: Korea to build an information The Machinery Subgroup alone highway using superfast ATM operates seven R&D centers. In switches for interactive video and 1995, the Finance Subgroup set up teleconferencing. Korea is a base an integrated research center, the from which Samsung increasingly Samsung Medical Center added a integrates itself with the world–as worldclass life-sciences research 1995’s new purified terephthalic center, and many affiliates acceler- acid plant will make us the world’s ated investments and hiring of second-largest producer of this researchers. Samsung Fine Chem- strategic chemical for polyester icals, for instance, expanded its and diverse products. cutting-edge research, boosted Proactive: Nurturing strate- investment at its Daeduk R&D gic, global growth is key to build- Center, pursued technology ing our 21st century corporation. development in China and began The key to growth is taking the cooperation with research facilities world’s needs as our in Russia. challenge. And what the To support all our affiliates, world demands is quality. we’re building a Samsung- We’re emphasizing wide technology base “value added” in busi- headed by the Samsung nesses worldwide: cars, Advanced Institute of planes, ships; optics, Technology. Around the semiconductors, display world, our integrated net- devices; computers, work for production and

THAILAND HONORED A SAMSUNG FACILITY WITH A “BEST PLANT” AWARD, A FIRST FOR ANY KOREAN COMPANY AND A WELCOME ACKNOWLEDGEMENT FROM A KEY NATION IN OUR IMPORTANT SOUTH- EAST ASIA REGION. THE PLANT WON AFTER BEING IN FULL OPERATION FOR LESS THAN A YEAR. computer components/peripher- procurement will be expanded to als, computer systems; cameras, include more R&D. video & audio; innovations in retail- From planning to research to ing, finance, insurance; specialty product development to materials chemicals,strategic petrochemi- sourcing to manufacturing to sales cals, tank terminals; and advanced to service, Samsung is challenged construction like nuclear-power by the world–and we give back as stations, environmental facilities much as we get. and next-generation steel plants. This 21st century corporation Plus, of course, telecommunica- is at home in the global village.

24 Samsung last year became Korea’sSão ﬁrst electronics company to open a plant in Paulo South America–a Manaus, Brazil,TV-VCR facility.Samsung marketers 10:11 (above) aim now for 10% of the video & audio market in Brazil, leading the way to other products and other high-growth economies in South America.

25 Opened in March 1996, Samsung Tijuana Park marks an aggressive first step toward an integrated complex that by the year 2000 will be worth $3 billion a year in sales to North America and Latin America’s booming markets. By then, the plant will offer jobs to 9,300 20 26 Mexicans and will draw almost 90% of its materials from local sources–reﬂecting Samsung’s practice of thorough development of host communities. Our people-orientedTijuana approach pays off in high quality and low employee turnover–just one-tenth of the nation’s average. 13:2

27 Two of China’s billion-plus consumers take home their first VCR–a Samsung naturally, since we’re China’s leading VCR maker in both technological Tianjinsophistication and size–35% of the nation’s production. Top-of-the-line quality, recognized by the Golden Bridge Award from Chinese consumer groups 1 28 and government institutions, means Samsung electronics command premium prices. Besides VCRs, six Samsung ventures in Tianjin produce TVs, VCR parts, 1 cameras, :20wool and ferrite products. By the year 2000, Samsung Electronics will have invested $1 billion in China, plus another $2 billion by the Samsung Group. 829 Innov ation:Samsung’schallenging 360°viewpoint CONSIDER EACH BUILDING BLOCK OF INNOVATION: IT’S A CUBE, THREE-DIMENSIONAL. OR, ROTATED HEAD-ON, IT LOOKS LIKE A SQUARE– TWO-DIMENSIONAL. IF YOU’RE AS EXCITED BY CHALLENGE AS WE ARE, TRY VISUALIZING A LIGHTER, STRONGER, CHEAPER, BETTER-LOOKING, MULTI-PURPOSE BLOCK. ORABOX, WITH SPACE INSIDE– CAN WE SQUEEZE IN MORE? CAN WE, AS CREATIVITY EXPERTS SAY, THINK “OUT OF THE BOX” OF EVERY ASPECT, CONNECTED, WITHOUT LIMITS? THAT’S THE 360° VIEWPOINT, THE GLOBAL PERSPECTIVE THAT DRIVES INNOVATION AT SAMSUNG. TAKE A LOOK AT SOME SHINING EXAMPLES OF THIS MULTIFACETED INNOVATION.... Video’s future beyond videotapes and laser discs is the DIGITAL VIDEO DISC (DVD). And Samsung’s innovative DVD-Player technology (100 patents pending) gives us a competitive edge in price and reliability with its unique optical pickup for audio CDs as well as DVDs. Next: Samsung’s DVD-Recorder, which squeezes more than an hour onto one 13-centimeter (5-inch) disc.

32 Samsung’s DIGITAL CAMCORDER (top) surpasses today’s analog format with digital tapes that deliver a picture like a fine photograph and sound better than a CD– for every copy as well for the original tape. Digital camcorders’ lighter weight, smaller size and advanced features will spur consumer demand over the next 10 years. Samsung’s new DIGITAL STILL CAMERA (bottom) can take up to 127 photos with its 2-megabit memory card…interact with a notebook PC or other computer, or with a TV, to edit or copy images..…and print photos on ordinary paper in any color printer – instantly.

33 Wide-screen TVs offer the best possible viewing with the same width-to-height ratio as a movie-theater screen. These TVs require a special kind of WIDE-SCREEN PICTURE TUBE GLASS that was developed by Samsung Corning. The affiliate is expanding its production capacity to produce 25% of the world’s supply of picture tube glass. TFT-LCD spells growth for Samsung. Now used mostly in small computers, these thin film transistor-liquid crystal displays are relatively small, like the 10.4-inch screen pouring off our newest production line. And in 1995, we added a 14.2-inch model in a TV, introduced the world’s largest TFT-LCD – 22 inches – and developed a 30-inch model.

34 With a touch of the pen and the finger on its screen, Samsung’s DIGITIZER SYSTEM converts your handwriting or drawing into digital data for your computer. In 1995, we began producing a smaller touch panel that uses either a pen or fingers to enter data into a PC or PDA (Personal Digital Assistant) with improved accuracy and reliability.

35 Samsung’s Cheil Industries unit in 1995 developed an environmentally friendly flame retardant resin called PC/ABS. This resin is a vastly improved type of acrylonitrile butadiene styrene that’s used in monitor and printer housings and other products. PC/ABS has excellent mechanical properties and processability, and better weather- and heat-resistance than other ABS resins.

36 WITH A 360° VIEWPOINT YOU SEE EVERYTHING, CONNECTED

an essay about innovation at samsung

Imagine yourself in a garden pa- first “Bio-TV” that emits far-infrared materials, effects of production vilion. Everywhere you look, the pan- rays beneficial for living organisms. and eventual recyclability. Others orama of nature surrounds you. No Everybody has a camera; we have think about financing, inventory walls to divide inside from out, no the world’s first 4x zoom camera demands, service support, every- windows to define your perspective, and a 7x zoom in development. We thing–360º.

just 360º of possibilities. Just like make the world’s smallest plain- We look inside and out, ask- innovation at Samsung. paper fax. The world’s quietest ing, “What do we know?” and Our 360º viewpoint looks not vacuum cleaner–only one-quarter “Where can we grow?” So, for just for “a better product” but encom- the noise of conventional models. instance, Cheil Industries knows

passes broad creativity, intercon- Our product strategy is clear: materials like its high-end fabrics nections, synergies, new purposes. We intend to quickly offer the best and resins; now it’s diversifying Another way of putting that is what products at the lowest possible into plastics base materials and we call “multifaceted integration,” price to secure strong competitive- artificial marble. a concept we can explain by going ness, starting at home and expand- Multifaceted integration back a couple of steps and looking ing distribution globally.We require applies as much to services as to at some concrete examples. each affiliate to introduce one products, as with the Finance Products: Thinking today “World’s Best” product each year. Subgroup’s four companies in one about tomorrow brings exciting With products, our 360º view- building to offer consumers in new products like top-of-the-line point means, for example, that Seoul one-stop shopping for their audio systems, high-definition while a new device may be a techni- insurance, credit-card and securi- television (HDTV), Digital Video cal wonder to our lab people, what ties needs. Disc (DVD) players–all innovations do our production engineers think Technologies: Next, let’s focus one you’ll find at Samsung. about actually manufacturing it? level up from products and ser- We also think creatively of Our marketers ask whether there’s vices– at the advanced technolo-

making conventional products un- any demand for it and, if there is, gies themselves now dawning, conventional: a 46-inch super-wide will it sell at the price needed? Our like home automation, intelligent TV;a flat,wall-hanging TV; the world’s environmentalists consider the raw buildings, interactive video, the

37 information superhighway,ro- And our semiconductor skills botics,artificial intelligence.And make possible the first 22-inch all these, too,are well advanced thin-film-transistor liquid-crystal at Samsung. displays (TFT-LCDs) for ultraflat We think of next-generation TVs, and thus to a head start for technologies not in isolation HDTV and other next-generation but synergistically–mutually technologies. reinforcing and advancing Strategies: Finally, look at the the total state of the art at highest level of innovative inte-

top to bottom Samsung.This technology strategy gration–Samsung’s strategies. DEVELOPMENT OF AN is another aspect of multifaceted Restructuring is one strategy to ENDOSCOPE DATA SYSTEM ADVANCED integration, another benefit of our reshape the basic form of our OUR GOAL OF BECOMING 360º viewpoint. 20th-century business into a ONE OF THE WORLD’S LEADING MAKERS OF For example, we integrate our sophisticated new structure with MEDICAL EQUIPMENT. expertise in television, telecommu- a 21st-century vision. Doing so

SAMSUNG MOTORS’ nications and computers with our around global industries with high- DESIGN INSTITUTE, OPENED IN 1995 NEAR state-of-the-art multimedia tech- growth potential is another stra- LOS ANGELES, nology to offer consumers home tegy. Focusing on developing key CALIFORNIA, ADDS EXPERTS WHO HAVE shopping, home banking, home technologies for new businesses HANDLED PROJECTS automation.To facilitate interac- is yet another. Linking everything is FOR THE WORLD’S TOP AUTOMAKERS–SOON tive video,teleconferencing,and a multi-faceted integration, our 360º TO INCLUDE SAMSUNG. faster information superhighway. viewpoint of innovation. You might

WE SEE THE AUTOMOBILE Ideally, technological inte- call it our “strategies strategy.” EVOLVING INTO A HYBRID THAT’S HALF gration spans the entire For a prime example of this ELECTRICAL AND Samsung Group. The 360º viewpoint at work, ELECTRONIC –TWO OF THE AUTO-RELATED picture-tube glass consider the auto- AREAS IN WHICH SAMSUNG IS A LEADER. for our wide mobile. We see TVs comes from it evolving into a Samsung Corning, hybrid that’s half elec- whose knowledge of cer- trical and electronic, areas amics strengthens both elec- where we’re a long-established tronics and telecommunica- leader. We see our base in auto- tions.Our expertise from motive parts and components laptops to supercom- expanding, our recent years of puters expands to the experience making and selling systems business. Our trucks and other vehicles extend- dynamic random access mem- ing now to vans,soon tocars.We see ory (DRAM) chips–we’re first in four growth for our machine-tool busi- generations at once–leads now to ness, a huge new opportunity for

our billion-bit DRAM, and to non- our global trading organization, memory chips like microprocessors. and distinctive after-sales services.

38 We look ahead to becoming one We’re not doing all this by our- of the world’s leading automobile selves because Samsung’s 360º manufacturers by the year 2010. viewpoint includes seeing where Established in March 1995, we can learn from others–in cars, Samsung Motors broke ground for especially from close ties with a technology center in Kiheung and Nissan. In 1995 we opened a U.S. a plant in Pusan to produce 80,000 design institute staffed with ex- units in 1998. We’re developing perts who’ve handled projects for components, setting up overseas the world’s top automakers; in branches, building a company-wide 1996 we’re adding R&D centers information network, hiring and in Japan and Europe. training people from Korea, Japan, Across Samsung, we’ve set Europe and the U.S. up 26 international technology In 1996 we’re centers, from Boston to Moscow, top to bottom doubling the R&D to acquire and develop world-class SAMSUNG’S NEW SQUID– staff and beginning technologies. Worldwide, strategic A SUPERCONDUCTOR QUANTUM INTERFERENCE tests to ensure flaw- acquisitions are under way to DEVICE–WILL FIND less cars. Implicit in strengthen Samsung’s overall level USE IN SUPER- COMPUTERS, MEDICAL our 360º viewpoint of innovative technology, while PRODUCTS AND OTHER HIGH-TECHNOLOGY is anticipating problems,seeing strategic alliances build fruitful APPLICATIONS. potential failures as well as suc- two-way links with other leaders. OPENING OUR UTOO cesses. So we’re building in active Recent acquisitions in- ZONE–A TOTAL FASH- and passive safety systems. And clude: IgT, securing chip-related ION SHOWROOM WITH MANY BRANDS, A we’re differentiating Samsung from technology for the information RECORD STORE, TRAVEL AGENCY AND OTHER other Korean automakers by mak- superhighway; Union Optical, a SERVICES– SETS A NEW ing quality the highest priority. semiconductor, optics and instru- STANDARD IN KOREAN RETAILING. By early in the next decade, ment maker; control of computer we’ll have invested $5.5 billion and maker AST, and an interest in Jazz DIGITAL DISCS’ STOR- AGE CAPACITY be making 500,000 cars a year, Multimedia, bringing image and INCREASES AS THE LASER’S sound technology. Acquiring WAVELENGTH SHORT- technology, Samsung Gen- ENS– INFRARED TO RED TO GREEN–AND eral Chemicals signed an SAMSUNG’S NEW BLUE agreement with UOP of LASER CAN PACK IN FOUR TIMES AS MUCH the U.S. for a $526 million DATA AS BEFORE. aromatics plant. Recent joint-venture with a new model every year, in- and technical agreements link cluding alternative-energy cars by Samsung to such other top com- 2005.That’s multifaceted integra- panies as Fujitsu for TFT-LCDs; tion in innovation–product, tech- NEC for microcomputers; Toshiba nology, strategy. for integrated circuits and flash

39 memories; SGS-Thomson for passenger airliners and is part microprocessors; Toray for semi- of groups developing advanced conductor bonding; General trainer aircraft, light helicopters Instrument for multimedia ICs; and a four-passenger vertical- Siemens for smart cards; Siemens takeoff plane. We’re also strong in and InterDigital for telecommuni- large helicopter engines. cations; CommQuest for satellite Even so, innovation speeds communications; SMS for a new globally from company to com- cellular-phone technology; Dancall pany, so we’re increasing our for mobile phones; Motorola for emphasis on design for a distinc- personal digital assistants; tive Samsung look to products. Honeywell for aircraft-electronics We’ve stepped up investment, software; Bovis & Turner, Trafalgar added top-notch designers & Tywood and Parsons for con- and established the Samsung struction engineering, and BP and Advanced Design Research Union Carbide for a vinyl acetate Institute, the Innovative Design

ACROSS SAMSUNG, WE INTEND TO

MORE THAN TRIPLE OUR RESEARCH STAFF

AND BOOST R& D SPENDING

FROM 5 % OF SALES IN 1995 TO 12% BY THE YEAR 2000.

monomer plant. We also cooper- Studio, the Samsung Art Design ate on development with many School and design centers in governments. Tokyo, Frankfurt and San Francisco. One of the most important Samsung’s 1996 “Year of the industries for joint development Design Revolution” will enhance and our independent work is group-wide excellence with a new our key business area of aero- “look of superiority.” space. Besides being chosen as Which is just one more prime contractor for the Korean way that Samsung’s 360º view-

F-16 Fighter Program, Samsung point pays off in every aspect of Aerospace is developing midsized innovation.

40 You can see innovation in Samsung’s unique PLUSONE™ TV, which displays a full-width, error-free image virtually identical to what the TV camera captured. Its sound system and exterior design, both of which have won prizes, also make the PlusOne™ a breakthrough receiver–at a price comparable to conventional TVs–for owners of ordinary sets and first-time buyers in developing nations.

41 A billion bits of data on one chip–and Samsung has the prototype design for this 21st-century product. As impressive as the capacity of this SYNCHRONOUS DYNAMIC RANDOM ACCESS MEMORY CHIP, equivalent to 8,000 newspaper pages, are its low power consumption and its rapid data trans- mission–all key innovations for the developing multimedia industry. Innovating for all compact-disc applications, in 1995 Samsung introduced the world’s first HOLOGRAM PICKUP that uses a surface-emitting laser diode. The pickup is the core component that reads recorded data, and Samsung’s new technology slashes manufacturing costs by 50% and power consumption by 90%–strong competitive advantages in a developing $2 billion market. Innovative models in our SYNCMASTER series of computer monitors have won multiple honors: Innovations ’96 Awards • Energy Star awards from the U.S. Environmental Protection Agency • The Editor’s Choice • The Recommended seal and a tie for first place in assessments by leading computer magazines. • It’s the monitor of choice for desktop publishing. Of the thousands of heavy-construction equipment models surveyed by Construction Equipment, the leading U.S. trade journal, Samsung models make the list of the top 100 products year after year. We’re Korea’s largest maker of heavy construction equipment, and we’re aiming to boost our share of this global market by aggressively expanding exports and by moving production overseas, as with our U.K. heavy-equipment plant completed in 1995. The first F-16 JET FIGHTER ever assembled in South Korea, and the first of an advanced F-16 model ever assembled anywhere outside the U.S., rolled out of a Samsung plant in 1995. As prime contractor for the Korea Fighter Program, we’re also strengthening our aerospace technology for civilian aircraft and helicopters.

44 Driving to become one of the world’s leading automakers by the year 2010, Samsung is accelerating investments and innovations, like our FORMULA SAMSUNG RACING MACHINE. Just two months after its 1995 debut, the car came in first in the 2000 cc Prototype II competition at Japan’s POKKA International 1000K.

45 Comm itment:Traditional values, new responsibilities NOURISHMENT AND HEALTH, KNOWLEDGE AND WELCOME– JUST A FEW OF THE THINGS SAMSUNG PEOPLE AND TECHNOLOGY CONTRIBUTE TO OUR WORLD. WE TOUCH MANY LIVES MANY WAYS WITH PROGRAMS FOR SOCIAL WELFARE, CULTURE AND THE ARTS, ACADEMICS AND EDUCATION, THE ENVIRONMENT, AND EMPLOYEE VOLUNTEERISM. SAMSUNG’S COMMITMENT TO SOCIETY IS OUR ABIDING CHALLENGE: PLANT SOME SEEDS, INVEST CARE, REAP A BOUNTY FOR GENERATIONS. IT’S OUR DUTY AS PEOPLE, AND OUR SATISFACTION AS SAMSUNG PEOPLE. HERE ARE SOME OF OUR STORIES.... MinAS AN ACCOUNT EXECUTIVE FOR CHEILOh COMMUNICATIONS, MIN KYUNG OH’S LOVE IS ART, AND SHE SHARES HER MUSE AS A TUTOR TO AN YONG SOON, AN 8-YEAR-OLD CANCER PATIENT.

TUTORINGKyung CRITICALLY ILL HOSPITAL PATIENTS IS JUST ONE OF THE MANY WAYS SAMSUNG PEOPLE HELP

PEOPLE. WE ENCOURAGE, REWARD AND COORDINATE EMPLOYEE VOLUNTEERS;

PROVIDE PAID VACATION TIME FOR SOCIAL-WELFARE WORK; AND SOMETIMES UNDERWRITE THEIR ACTIVITIES.

WE SPONSOR AN ANNUAL VOLUNTEER WEEK, WHICH IN 1995 MOTIVATED 50,000 SAMSUNG

VOLUNTEERS IN KOREA TO FORM 1,900 GROUPS WHOSE WIDE RANGE OF PROJECTS DEMONSTRATES

SAMSUNG’S CORE VALUE: TO CONTRIBUTE TO SOCIETY. (Art Tutor)

48 49 50 OkHYUN OK WOO BELIEVES IN WHAT SHE DOES AS A TRAINER, AND FOLLOWS HER COMMITMENT HyunIN HER LIFE. IT TOOKWo HER TO VIETNAM o AS A COMPUTER TUTOR FOR CHILDREN IN SAMSUNG’S INTERNATIONAL VOLUNTEER PROGRAM, CALLED STARGEO. WE’VE ALSO SET UP THE SAMSUNG-VIETNAM EXCHANGE

FUND FOR UNIVERSITY-LEVEL SUPPORT. WORLDWIDE, ANOTHER SAMSUNG PROGRAM EACH YEAR SENDS OVER

500 HIGH-POTENTIAL EMPLOYEES TO IMMERSE THEMSELVES IN THE CUSTOMS AND LANGUAGES OF

OTHER NATIONS; THE ONLY WORK THEY’RE ASKED TO DO IS INVEST AT LEAST TWO OF THEIR 12 MONTHS ABROAD

IN SOCIAL SERVICE– IMPROVING THE WORLD, THEMSELVES, AND SAMSUNG’S FUTURE. (Computer Instructor)

51 Augustin aneaAS A YOUTH-SOCCER COACH IN BUCHAREST AS WELL AS AN ADMINISTRATOR, M AUGUSTIN MANEA IS ONE OF MANY SAMSUNG PEOPLE WHO SHARE THE EXCITEMENT OF BUSINESS AND SPORTS COOPERATING HAND IN HAND.

WE’VE ESTABLISHED THE SAMSUNG CUP SOCCER TOURNAMENT

IN RUMANIA, AND WE SPONSOR PROFESSIONAL SOCCER TEAMS IN HUNGARY,

POLAND, GERMANY, ENGLAND, ARGENTINA, CHILE, CHINA AND OUR

BLUE WINGS IN KOREA. OTHER SAMSUNG TEAMS COMPETE INTERNATIONALLY

IN WRESTLING, BASEBALL, BASKETBALL AND TABLE TENNIS. WE ALSO

SPONSOR INTERNATIONAL COMPETITIONS–FROM WOMEN’S GOLF AND

TAEKWONDO TO THE 1996 SUMMER OLYMPIC GAMES

IN THE U.S.–AND, WE’RE THE FIRST CORPORATE SPONSOR OF THE

1998 BANGKOK ASIAN GAMES. (Coach)

52 THE GOLDEN RULE, INCORPORATED

AN ESSAY ABOUT SAMSUNG'S CONTRIBUTION to SOCIETY

We all live together in society. We do so with programs for the We renovate facilities for the And today, living harmoniously environment, customers, em-ploy- physically disabled, and we’ve requires extending the reciprocal ees; with quality controls, built and donated 117 vehicles responsibility of the traditional investments, contributions; with specially built for them. We also community to the global village. education, medical advances, di- provide transportation and Harmony within the family, saster relief; with volunteer work, surgery for the blind. the community, the culture–and care for our communities, sports. Our guide-dog school, the people in harmony with nature– We’re taking on new roles and in- only one in Korea, develops train- is a central concept in the East. creasing our social contributions, ers as well as seeing-eye dogs “No man is an island” in the West to over $295 million in 1995. at our Everland Zoo, resort and either, at least in the vision of the Social Welfare Programs and amusement park. This program is English poet John Donne and the activities are wide-ranging, from perhaps the finest expression of imperative of “do unto others”– improving public hygiene to send- Samsung’s belief that the re- a“Golden Rule” that is Confucian ing social workers abroad for lationship between people and and Christian and commonplace advanced training. While caring animals enriches both and also worldwide. for people in need, like providing improves society as a whole Call it everyday humanity or hot lunches for the elderly poor, through greater humanity and age-old jen, this ubiquitous idea we seek fundamental appreciation of the sanctity of all of doing good for one another is solutions to the problems of the life. With international coopera- the tradition behind the corporate disadvantaged–including job tion,we’re doubling the number of culture of a global Samsung. We training and placement to help seeing-eye dogs contributed believe that fully realizing the develop their self-sufficiency. For in 1996 and planning further in- role of a good corporate citizen, example, we established and sup- creases in 1997. contributing to society through port two electronics factories Samsung’s Special Purpose business activities and social de- designed exclusively to employ Dog Training Center prepares velopment, is the only way a 21st the physically handicapped as dogs for search-and-rescue work century company can earn the full-fledged members of the and the police and military. It’s public’s trust and social consent. Samsung community. an exchange program with the

53 U.K.’s West Midlands Police, for children with heart defects which has praised Samsung’s or facial deformities. “amazing commitment.” We also Culture and Arts Programs offer cooperate with the U.K. in our diverse support for our Korean Toy Dog Kennel, which breeds and global heritage.Our Ho-Am pets for adoption by employees, Art Museum, for example, incor- who are willing to wait as much porates both masterpieces of as a year. traditional Korean art and the Our Pet AsTherapy program finest art from the West. Our contributes dogs to orphanages, Rodin Gallery is to be dedicated retirement and nursing homes, in 1997, followed by the Samsung mental-health institutions and Modern Art Museum in 2000. We hospitals for the handicapped. supported 1995’s opening of the One example: an autistic boy Korean Gallery at New York’s whose behavior has improved Metropolitan Museum as we’d dramatically through his rela- previously established the tionship with his new Labrador Samsung Gallery at London’s retriever. Victoria & Albert Museum. From our work to preserve Some treasures are for allof Korea’s Jindo dogs and other humanity to share.The Tripitaka rare breeds, to the U.K.’s annual Koreana, the 13th century wood- Crufts Dog Show, to the Feder- block engravings of the complete ation Equestre International/ Buddhist sacred texts, in 1995 left SAMSUNG Samsung International Jumping were designated by UNESCO WELFARE CENTER HAS BUILT AND OPERATES &Dressage Competitions,to bird as “World Heritages,” along 26 DAYCARE CENTERS protection, to the preservation of with their temple. With funding FOR LOW-INCOME WORKING COUPLES, rare wild species like the white and technical expertise from AND PLANS TO BUILD tiger, no other company dedicates Samsung, the Tripitaka Koreana MANY MORE BY THE itself to animal welfare in quite is newly available on CD-ROM– YEAR 2000. the same way as Samsung. all 53 million Chinese right THE HO-AM Children, the fu- characters recon- ART MUSEUM’S ture of our society, ciled and ren- THOUSANDS OF PRICELESS OBJECTS are at the heart of dered in digital INCLUDE MANY many programs. format. Now DESIGNATED AS We’ve built 26 we’re helping NATIONAL TREASURES, WHILE ITS SPECIAL daycare centers reference the EXHIBITIONS and plan many more. text, pr0ducing INTRODUCE KOREANS TO MAJOR TRENDS IN We’ve set up the Center an electronic version ART for Early Education & Develop- of the Korean-language Tri- WORLDWIDE. ment. We provide “Big Brothers” pitaka and planning an English and financial help to teenagers translation–in order to share who’ve lost their parents and one vision of harmony within taken charge of their households. the cultural plurality we value We arrange medical assistance around the world.

54 Looking to the future, we’re of human existence, the earth’s working to stimulate creativity biosphere, through an internal with the Samsung Children’s system called Total Quality far left SAMSUNG CHILDREN’S Museum, which opened Environment Management MUSEUM, OPENED in 1995. Meanwhile, and through external activities IN 1995, IS KOREA’S FIRST EXPE- our $26 million and ecological organizations. RIENTIAL LEARNING CENTER TO HELP CHILDREN MAMPIST pro- Samsung affiliates’environmental EXPAND THEIR THINKING gram will develop activities have been expanding ABILITIES. 200 young profes- for years, and in 1996 we adopted sionals in music, art, a Green Management film, drama, dance and Declaration for the whole arts management. Samsung Group.Our Green Academics and Education Pro- Management ob-jectives grams offer broad assistance to include: universities, plus thesis prizes to □ Minimize the adverse individuals to stimulate research environmental impact of pol- and technology exchange. Ano- lution-causing emissions and ther program, Samsung’s Ho-Am wastes and, by the year 2000, Prize, recognizes research in six create plants that don’t produce above VOLUNTEERS FROM THE SAMSUNG ELECTRONICS SUWON areas that further human welfare: effluents. FACILITY CLEAN UP THE WON- basic science, engineering, med- □ Be environmentally respon- CHUN RIVER TWICE A MONTH. OUR “ADOPT A ical science, the arts, mass com- sible for the entire life cycle of RIVER” AND SIMILAR “ADOPT A munication and social services. products, from inception to safe MOUNTAIN” PROGRAMS HAVE We fund interna- disposal. SPREAD TO HUNDREDS OF OTHER ORGANIZATIONS. tional exchange pro- □ Operate all work

grams, plus acti- sites to protect the left HYUN-JAE LEE, CHAIRMAN vities around the world in which OF THE HO-AM PRIZE COMMITTEE, PRESENTS THE world: Korean we live–with no 1996 HO-AM PRIZE studies pro- pollution, no acci- FOR SOCIAL SERVICES TO grams at leading dents,no illness. LOIS F. LINTON. ESTABLISHED BY SAMSUNG, THE AWARD HONORS universities; Korean- Toaddress local INDIVIDUALS OR GROUPS FOR language programs in issues, everyone is THEIR CONTRI-BUTIONS TO SOCIAL DEVELOPMENT AND THE Russia and China; SAT II mobilized on Earth Day. ENHANCEMENT OF SOCIAL (Scholastic Aptitude Test) for For years, people from each WELFARE. Korean-language majors in the Samsung affiliate have volun- right SAMSUNG OPERATES THE U.S., and–to help develop Third teered for our “Adopt a River” ONLY GUIDE-DOG World communities–scholar- and “Adopt a Mountain” clean- TRAINING SCHOOL IN KOREA, ships, computers, audio/visual up programs. And as they’ve ONE OF MANY PROGRAMS EXPRESSING OUR BELIEF THAT aids and books for schools. We’re undertaken cooperative action in THE RELATIONSHIP BETWEEN now sponsoring the translation of their parts of Korea, such PEOPLE AND ANIMALS ENRICHES Korean literary masterworks into programs have now taken root BOTH. English. with the general public and Environmental Preservation with 450 other companies and Programs address the very basis public institutions, benefiting

55 12 rivers and 26 mountains their own lives by their service. with the societies in which they around the country. In 1994 we established this have operations. An environmentally sensi- employee volunteer program To our own employees we tive Samsung starts with training at every Samsung location in offer extensive training, en- for every employee worldwide. Korea. Drawing on their own couraging creativity and self- Cleaneraircomes from the pollu- interests and abilities as well development in computers, tion-prevention programs we’ve as on their professional skills, foreign languages and other completed, and from our clean- 50,000 people volunteered to areas. Women, too often over- burning fuel. Broad improve- work on nearly 2,000 teams. looked in the Asian work force, ments come from recycling and We encourage families as get additional programs like a minimizing waste–by 50% at con- well as employees to volunteer night university. struction sites–and from treat- for community involvement, from With all of Samsung’s so- ing and reusing water; we raise Seoul to remote villages needing cially responsible commitments, carp at some water-treatment donations, legal counseling, we’ve heard some plants. We also take responsi- medical assistance or good feedback bility for our products, right down other help. We provide from the pub- to overseeing the collection and awards, financial sup- lic, host gov- proper disposal of consumer port, insurance and up ernments and electronics at the end of their to seven days paid leave our own em- long lives. for employees’ volunteer ployees. A survey The challenge of environ- activities, and sometimes we in Korea, for example, mental commitment drives underwrite their social- rated Samsung first in service both our business and THIS SYMBOL welfare causes. to the nation and to society OF A STAR CREATED BY social practices.These PEOPLE JOINING HANDS MARKS Immediately in general. must not conflict, SAMSUNG’S POLICY OF SOCIAL after the earth- We also listen to our own COMMITMENT. IT SYMBOLIZES OUR and ideally they quake that killed hearts to know that Samsung’s FIVE PROGRAMS FOR SOCIAL WELFARE, overlap–amultifac- CULTURE AND ARTS, ACADEMICS AND 5,000 in Kobe, social commitment is right. To eted integration of EDUCATION, ENVIRONMENTAL PRE- Japan, Samsung measure whether we’re reaching corporate responsibil- SERVATION AND EMPLOYEE was the first private our goal of incorporating our tra- VOLUNTEERISM. ity. Examples: our own cata- relief organization to ditional values into all of the new lyst for auto exhausts, an en- reach the scene, with 87 rescue contributions that a 21st century vironmentally friendly flame workers, followed by 20 medical corporation must make, we look retardant, heat-treatment tech- personnel to assist for a month. to Samsung’s vision: nology for urban sludge, a non- We also provided relief after Are we devoting our human polluting tanker, a high-efficiency disasters in Egypt, China and resources and technology to solar cell, and we’re working on a Russia’s Sakhalin Island. contributing to the betterment practical electric car. Samsung and the Tokyo of society? Employee Volunteer Programs Volunteer Service Center in 1995 Yes. And we’ll do more to encourage the men and women jointly arranged a mountain enhance our contributions to of Samsung around the world to climbing event in Korea for 30 creating a better, harmonious contribute to solving local social blind people, with a similar event society. To us, being a good cor- problems. They not only put into to be held in Japan in 1996. porate citizen is an integral part practice our fundamental belief Examples multiply around of being a first-class company. in harmony between businesses the world as Samsung affiliates That’s Samsung’s challenge to and society, but are enriched in shape their activities in harmony succeed in every way.

56 SUNG JIN KIM’S CHALLENGE

IS THE ENVIRONMENTAL

LEGACY WE LEAVE FOR FUTURE

GENERATIONS,

A VALUE HE SHARES WITH

MANY OTHER SAMSUNG PEOPLE

WHO ALSO VOLUNTEER

TO CLEAN UP A RIVER IN THEIR

AREA; OTHER AFFILIATES

ADOPT NEARBY MOUNTAINS.

SAMSUNG UNITS CAREFULLY

MONITOR WATER QUALITY, AND

TREAT AND REUSE

WASTE WATER. WE’VE EVEN

DEVELOPED A REVERSE-OSMOSIS

FILTER THAT CAN TURN SEA

WATER INTO POTABLE FRESH WATER

AND FILTER OUT HEAVY

METALS AND OTHER POLLUTANTS

DOWN TO 1/10,000TH

OF A MICRON (A MILLIONTH

OF A METER). THROUGHOUT

SAMSUNG, OUR GREEN

MANAGEMENT PROGRAM WORKS

FOR A HEALTHY FUTURE.

THE SEJONG SOLOISTS, A “ DREAM ENSEMBLE” FORMED IN 1995 FROM PRIZE- WINNING YOUNG

SOLOISTS REPRESENTING FIVE NATIONS, THRIVE WITH THE SPONSORSHIP OF THE SAMSUNG FOUNDATION

OF CULTURE. AND THIS CELEBRATED STRING ENSEMBLE COUNTS ON THE HELP OF THE

FOUNDATION’ S OH SUNG KWON, WHO’ S IN CHARGE OF FUND- RAISING AND OTHER ACTIVITIES SUCH

AS SCHEDULING THE GROUP’ S TOURS THROUGHOUT THE U.S. AND KOREA. TO DEVELOP

EXCEPTIONAL STUDENTS WHO DREAM OF A FUTURE IN MUSIC, WE’ RE ESTABLISHING AN INSTRUMENT BANK TO LEND THEM SPECIAL INSTRUMENTS, AND WE’ RE ENCOURAGING TRADITIONAL MUSIC Jin LESSONS FOR PUPILS FROM ELEMENTARY THROUGH HIGH SCHOOLS. Sung (EnvironmentalKim (Project Manager)OhSungKwon Manager)

59 62 57 58 58 58 SUNG JIN KIM’S CHALLENGE

IS THE ENVIRONMENTAL

LEGACY WE LEAVE FOR FUTURE

GENERATIONS,

A VALUE HE SHARES WITH

MANY OTHER SAMSUNG PEOPLE

WHO ALSO VOLUNTEER

TO CLEAN UP A RIVER IN THEIR

AREA; OTHER AFFILIATES

ADOPT NEARBY MOUNTAINS.

SAMSUNG UNITS CAREFULLY

MONITOR WATER QUALITY, AND

TREAT AND REUSE

WASTE WATER. WE’VE EVEN

DEVELOPED A REVERSE-OSMOSIS

FILTER THAT CAN TURN SEA

WATER INTO POTABLE FRESH WATER

AND FILTER OUT HEAVY

METALS AND OTHER POLLUTANTS

DOWN TO 1/10,000TH

OF A MICRON (A MILLIONTH

OF A METER). THROUGHOUT

SAMSUNG, OUR GREEN

MANAGEMENT PROGRAM WORKS

FOR A HEALTHY FUTURE.

THE SEJONG SOLOISTS, A “ DREAM ENSEMBLE” FORMED IN 1995 FROM PRIZE- WINNING YOUNG

SOLOISTS REPRESENTING FIVE NATIONS, THRIVE WITH THE SPONSORSHIP OF THE SAMSUNG FOUNDATION

OF CULTURE. AND THIS CELEBRATED STRING ENSEMBLE COUNTS ON THE HELP OF THE

FOUNDATION’ S OH SUNG KWON, WHO’ S IN CHARGE OF FUND- RAISING AND OTHER ACTIVITIES SUCH

AS SCHEDULING THE GROUP’ S TOURS THROUGHOUT THE U.S. AND KOREA. TO DEVELOP

59 62 57 SUNG JIN KIM’S CHALLENGE

IS THE ENVIRONMENTAL

LEGACY WE LEAVE FOR FUTURE

GENERATIONS,

A VALUE HE SHARES WITH

MANY OTHER SAMSUNG PEOPLE

WHO ALSO VOLUNTEER

TO CLEAN UP A RIVER IN THEIR

AREA; OTHER AFFILIATES

ADOPT NEARBY MOUNTAINS.

SAMSUNG UNITS CAREFULLY

MONITOR WATER QUALITY, AND

TREAT AND REUSE

WASTE WATER. WE’VE EVEN

DEVELOPED A REVERSE-OSMOSIS

FILTER THAT CAN TURN SEA

WATER INTO POTABLE FRESH WATER

AND FILTER OUT HEAVY

METALS AND OTHER POLLUTANTS

DOWN TO 1/10,000TH

OF A MICRON (A MILLIONTH

OF A METER). THROUGHOUT

SAMSUNG, OUR GREEN

MANAGEMENT PROGRAM WORKS

FOR A HEALTHY FUTURE.

THE SEJONG SOLOISTS, A “ DREAM ENSEMBLE” FORMED IN 1995 FROM PRIZE- WINNING YOUNG

SOLOISTS REPRESENTING FIVE NATIONS, THRIVE WITH THE SPONSORSHIP OF THE SAMSUNG FOUNDATION

OF CULTURE. AND THIS CELEBRATED STRING ENSEMBLE COUNTS ON THE HELP OF THE

FOUNDATION’ S OH SUNG KWON, WHO’ S IN CHARGE OF FUND- RAISING AND OTHER ACTIVITIES SUCH

AS SCHEDULING THE GROUP’ S TOURS THROUGHOUT THE U.S. AND KOREA. TO DEVELOP

59 62 57 COMBINEHwang A CONCERN FOR PEOPLE IN NEED WITH A LOVE OF ANIMALS AND YOU GET JIN AH HWANG’S Jin CARING CHALLENGE: TO TRAIN SEEING-EYE DOGS FOR THE BLIND. THE RESULT DELIGHTS JI HO YANG, AhHIS DOG “ABE,” AND ALL OF US AT SAMSUNG. WE RUN KOREA’S ONLY GUIDE-DOG SCHOOL AND MANY OTHER PROGRAMS FOR THE BLIND. WE DONATE SPECIAL COMPUTERS AND TEXT-TO-SPEECH SYNTHESIZERS,

FUND SCHOLARSHIPS TO MUSIC SCHOOL, PRODUCE BOOKS ON TAPE AND PROVIDE SOCIAL SERVICES

TO A VILLAGE FOR THE BLIND. (Dog Trainer)

63 SamsungA new Samsung for a i

64 Samsung ranks as one of increased regional autonomy the environment and to give the world’s largest companies: with a“SecondSamsung”level back to society, including expand- 1995 sales rose 36% to in key geographic areas. ing our social contributions to a record $87 billion. We’ve stepped up research over $295 million in 1995. Assets of $86.8 billion at and development spending We’ve improved across the year-end 1995, a 33% increase and capital investments in high- board, boosting return on to another record. growth businesses like average shareholders’equity to 233,000 employees with 340 aerospace,telecommunications, 23% in 1995 from 16% the year facilities in 66 countries. retailing and– a major new before, as 1994’s was more And we intend to become effort–automaking. than twice the 1990–1993 range. one of the world’s top 10 We’ve built strategic links to And we’ve more than doubled companies by the year 2000. other global leaders, from net income,to $3.8 billion in 1995, We’re accelerating our progress: Japan,across Eurasia,to theU.S. after more than tripling it in 1994. We’ve completed a restruc- We’ve overhauled our cor- In these pages, you’ll turing into four core industries– porate culture to enhance find a sector-by-sector, company- Electronics, Machinery, innovation,responsiveness and by-company look at the diverse Chemicalsand Finance–plus quality in every product and strengths of a global leader– one group of independent service. At the same time,we’ve and a close-up view of how we’re companies. deepened our traditional building a new Samsung for a We’ve expanded globally and commitment to actively protect challenging new era.

is:new era

65 Electronics The Electronics Subgroup is a cohesive unit capable of turning raw materials into highly sophisticated finished products. Fully integrated, Samsung Electronics produces video & audio products, appliances, information systems, computers and semiconductors.

Samsung Electronics Co., Ltd. Samsung Display Devices Co., Ltd. Samsung Electro-Mechanics Co., Ltd. Samsung Corning Co., Ltd. Samsung Data Systems Co., Ltd. Hewlett-Packard Korea Co., Ltd. Samsung-GE Medical Systems Co., Ltd.

Employees: 103,857 1995 Sales: $26.7 billion

Machinery Vertically and horizontally integrated, the Machinery Subgroup covers such areas as power plants, waste-treatment facilities, infrastructure, material-handling systems and “mechatronics”–the interface of mechanics and electronics.

Samsung Heavy Industries Co., Ltd. Samsung Aerospace Industries Co., Ltd. Samsung Watch Co., Ltd.

Employees: 23,195 1995 Sales: $5.4 billion

Chemicals Samsung Chemical operations are built around petrochemical production. From this base, group affiliates continue to expand into such new, highly sophisticated products as high-polymer compos- ites, engineering plastics and specialty chemicals.

Samsung General Chemicals Co., Ltd. Samsung Petrochemical Co., Ltd. Samsung Fine Chemicals Co., Ltd. Samsung-BP Chemicals Co., Ltd.

Employees: 3,221 1995 Sales: $2.1 billion Finance The Finance Subgroup includes life, property and casualty insurance as well as credit card and securities operations. Aiming to become a leading player in 21st century global markets, the subgroup is accelerating growth to make it one of the world’s 100 largest financial institutions. All of the companies expect to be formally united after the year 2000 under the umbrella of a single holding company, to be called Samsung Financial Services Co.

Samsung Life Insurance Co., Ltd. Samsung Fire & Marine Insurance Co., Ltd. Samsung Card Co., Ltd. Samsung Securities Co., Ltd.

Employees: 86,419 1995 Sales: $19.8 billion

Other Samsung Companies The Independent Affiliates Subgroup includes our new auto company, Korea’s highest-rated hotel, its leading newspaper publisher, state-of-the-art medical and research institutes and cultural and welfare foundations.

Samsung Motors Inc. Samsung Corporation Samsung Engineering Co., Ltd. Cheil Industries Inc. Joong-Ang Development Co., Ltd. Hotel Shilla Co., Ltd. The Joong-Ang Ilbo Cheil Communications Inc. S1 Corporation Samsung Entertainment Group Samsung Lions Samsung Medical Center Samsung Economic Research Institute Samsung Human Resources Development Center Samsung Advanced Institute of Technology Samsung Foundation of Culture Samsung Welfare Foundation

Employees: 39,397 1995 Sales: $33 billion Elec- tronics

Samsung Electronics’ 1995 sales climbed 31% to a record $21 billion, making it a world leader in electronics, and No. 1 for four consecutive years in sales of dynamic random access memory chips. Samsung Electro-Mechanics, capitalizing on the trend towards smaller and lighter electronics products, makes the world’s smallest tuners and is accelerating next- generation products. Samsung Display Devices is the world’s largest maker of color picture tubes, with 17% of the global market, and is boosting R&D spending to 15% of sales to increase its higher added-value products. Samsung Corning, a high-tech glass company in Asia and Europe, has been chosen by the Harvard Business School as a model case study of a successful joint venture with Corning Inc. of the U.S.

68 SAMSUNG new technology-intensive prod- overseas. In 1995, SDD pro- ELECTRONICS CO.,LTD. ucts, SEC is forming strategic duced 26.5 million color picture Samsung Electronics Co. (SEC) alliances with leading compa- tubes, representing 17% of the manufactures a broad range of nies around the world, investing world market. At the same time, electronics-related items, from in numerous joint ventures and the company continues to semiconductors to finished acquiring part or all of overseas expand its production base for consumer electronics, telecom- companies. SEC recently pur- its full range of other display munications hardware and chased LUX of Japan, bought a devices. multimedia products. major share of AST Research of Investment in R&D has In recent years, SEC has the U.S., and entered into tech- been increased to 15% of annual emerged as a major player in the nology sharing arrangements sales to create top quality prod- world electronics industry, rank- with Toshiba, NEC, Digital, SGS- ucts with higher added value. ing first in world sales of dynamic Thomson and Siemens. SDD has a research network that random access memory (DRAM) Samsung Electronics is spans six countries, including chips for four years in a row. In both globalizing and localizing the new European R&D Center 1994, Samsung Electronics operations. The company oper- in Germany. This network allows became Korea’s first manufac- ates five overseas regional the company to develop prod- turer to exceed $13 billion in total headquarters, in London, Tokyo, ucts that better satisfy the sales ($14.9 billion that year). Beijing, Singapore and New specific needs of local markets. Total sales for 1995 broke the $21 York, and maintains a global net- Picture tubes are the base billion mark, and exports reached work comprising 64 offices. In from which SDD has developed $14.5 billion. order to better respond to local into a leading manufacturer of Samsung Electronics is a market demands, SEC maintains display devices, and has main- leader in manufacturing multi- 22 offshore production facilities, tained its technological edge in media products, which integrate including integrated electronics this area. Recently, Samsung many different advanced tech- complexes in the U.K., Mexico Display Devices developed the nologies. SEC has developed a and Malaysia and two in China. world’s first 2.5R ultraflat picture 22" thin-film-transistor liquid In addition, SEC operates eight tubes as well as many wide- crystal display (TFT-LCD), the overseas R&D centers as well as screen TV picture tubes. SDD is world’s largest to date, setting a product design center at each the first to apply the “spin coat- the stage to make wall-hanging of its overseas regional head- ing” technique to create the “low TVs commonplace in the mar- quarters. resistance, electromagnetic- ket. Other important R&D Employees: 71,440 emission-blocking” picture tube. successes include a digital video 1995 Sales: $21 billion SDD’s new “long-life” picture disc (DVD) player, key semicon- Tel: (82) 2-727-7114 tube lasts three times longer ductors for high-definition TV Fax: (82) 2-727-7851, 7985 than conventional models, while (HDTV) and 3-D graphics chips. Major Products: TVs, VCRs, the image on the “quick start” In telecommunications, camcorders, audio systems, picture tube appears the instant SEC was the first to commercial- CD players, laser disc players, the power is switched on. ize the code division multiple CD-ROMs, HDDs, refrigerators, Liquid crystal displays access (CDMA) digital telecom- microwave ovens, desktop PCs, (LCDs) are emerging as key munications system. The notebook PCs, workstations, high-tech components in the company has also produced monitors, electronic telephone electronics industry. SDD mass- such key parts as CDMA signal switching systems, facsimile produces 10.4" and 11.3" color amplification chips, chips for machines, keyphones, cordless super-twisted nematic (STN) asynchronous transfer mode phones, pagers, cellular phones, LCDs for notebook PCs. (ATM) switching systems, and optical fiber, DRAMs, SRAMs, Research is now under way on hardware for personal commu- flash memory devices, 33" color plasma display panels. nications services (PCS). SEC EEPROMs, ASICs, TFT-LCDs, The LCD Research Center was also exports electronic switching PABX systems established in 1995 to rapidly systems to Russia, Eastern develop this area of business Europe, Southeast Asia and SAMSUNG and diversify SDD’s product Latin America; and will soon DISPLAY DEVICES CO.,LTD. line-up. offer telecommunications ser- Samsung Display Devices At the same time, SDD is vices as well. (SDD) is the world’s largest applying picture tube produc- In order to rapidly secure maker of color picture tubes, tion technology to mass produce new technology and develop with 90% of its products sold vacuum fluorescent displays

69 (VFDs) and aims to be the the world market for deflection tuners, cable TV converters, aims to be one of the world’s world’s largest VFD maker by yokes (13.5%, worth $193 million) capacitors, surface mounting major players in the 21st century the year 2000. The company and for flyback transformers devices, spindle motors, sensors, information industry. Main busi- is also aggressively expanding (13.8%, worth $148 million). electromagnetic interference ness areas include systems production of light-emitting Samsung Electro-Mechanics filters, floppy disc drives, laser integration, systems manage- diodes (LEDs), which are used operates production subsidiaries diodes, light-emitting diodes, ment, telecommunications in everything from instrument in Portugal, China (Tianjin and laser scanning units services and training. panels to electronic outdoor Dongguan), Thailand and Mexico Quality is the top priority at billboards. and maintains 15 offices in a SAMSUNG CORNING CO.,LTD. SDS. In April 1994, the company Samsung Display Devices global network designed to keep Samsung Corning is a joint ven- became Korea’s first informa- continues to diversify as well, the company close to its cus- ture between the Samsung tion services company to receive moving into such areas as bat- tomers and to supply overseas Group and Corning Inc. of the ISO 9001 certification. teries, digitizers, lamps and markets quickly. U.S. to produce high-tech mate- The company’s impressive color filters. In 1995 the com- The trend in the electronics rials. Main products include track record includes developing pany began to build Korea’s industry is toward products that glass for TV picture tubes and an automated clearance first color filter plant, located at are ever smaller and lighter. In PC monitors, indium-tin-oxide system for Korea’s Customs Chunan, Korea, which includes response to changing needs, glass for liquid crystal displays Administration as well as a a production and marketing Samsung Electro-Mechanics has and rotary transformers for VCR worker’s compensation system system for metal halide lamps developed the world’s smallest head drums. Each of these prod- for the Ministry of Labor. and high-voltage arc lamps. tuners (15cc) and is now mass uct categories represents at Various systems integration SDD became the first producing chip-type electrolytic least 15% of the world market. services include visiting client domestic LCD maker to become capacitors. Next-generation The company continues to companies to understand their ISO 9001 certified. In 1995, components such as laser evolve with the rapidly-changing information-related problems the British Standards Institute diodes and magnet cores are electronics industry and provide and developing efficient solu- bestowed ISO 14001 DIS certifi- also being developed. top customer satisfaction by tions. SDS uses its unique cation on SDD’s Pusan Plant, In 1995, the Samsung Group developing new, high-tech prod- business re-engineering meth- the first production facility became involved in the auto- ucts. Samsung Corning is now ods to create a new working in Korea to pass this strict mobile business. As part of manufacturing glass for HDTV, environment for clients. The international standard for this effort, Samsung Electro- wide-screen TVs and TFT-LCDs. company will open its Unitel environmental quality. In May Mechanics is preparing to apply In addition to the two pro- service in 1996, allowing 1995, SDD was selected as the its “mechatronics” (mechanics + duction complexes in Korea (at subscribers to access news, Company of the Year by the electronics interface) technology Suwon and Kumi), color picture data bases, education, home Korea Management Association. to develop and produce automo- tube glass plants in Germany shopping and entertainment via Meanwhile, the globaliza- tive parts. R&D activities are and Malaysia, and a ferrite their personal computers. tion process is well under way at also focused on surface mount- plant in China, plans call for Samsung Information Samsung Display Devices. In ing devices and related core an ongoing expansion of the Technology Academy offers a 1995, steps were taken to add materials as well as on digital global network. full curriculum that covers new offshore production facili- technology, radio communi- All Samsung Corning basic computer use as well as ties in China and Brazil to those cations technology and the production operations are rec- specialized information- already in operation in Malaysia, production of parts and com- ognized as being friendly to related technology. Using Germany and Mexico. ponents for fiber optics systems. the environment. The company computer-aided instruction Employees: 12,000 The company currently invests has also been selected as a and other advanced multimedia 1995 Sales: $3 billion over 5% of total sales in research. model case study of a successful techniques, the academy is Tel: (82) 2-727-3114 Employees: 10,000 joint venture by the Harvard educating computer specialists Fax: (82) 2-727-3111 1995 Sales: $1.7 billion Business School. for the future. Major Products: color picture Tel: (82) 331-210-5114 Employees: 3,600 SDS services bring together tubes, liquid crystal displays, Fax: (82) 331-210-6363 1995 Sales: $777 million computers, communications vacuum fluorescent displays, Major Products: multilayer Tel: (82) 2-3457-9638 and information. Systems inte- light-emitting diodes printed circuit boards, electronic Fax: (82) 2-3457-9539 gration services combine tuners, deflection yokes, flyback Major Products: TV picture tube various multimedia hardware, SAMSUNG ELECTRO- transformers, radio frequency glass, LCD glass, soft ferrite packaged software, geographic MECHANICS CO.,LTD. modulators, radio frequency information systems, computer- Samsung Electro-Mechanics modules, components for tele- SAMSUNG aided manufacturing, strategic manufactures key parts and communications systems, VCR DATA SYSTEMS CO.,LTD. information systems, business components for electronic prod- heads, drum motors, VCR cylin- Samsung Data Systems Co. process reengineering and ucts. In 1995, the company ders, AC motors, audio decks, (SDS) is Korea’s largest infor- consulting to provide state-of- recorded the largest share of speakers, keyboards, cable TV mation services company and the-art infrastructure to public

70 institutions, as well as compa- produced workstations, which (CT) systems, ultrasound sys- nies involved in electronics, are being exported worldwide tems, X-ray systems and patient heavy industries, chemicals, through Hewlett-Packard monitor systems. finance and retail. At the same sales channels. In 1993, the company began time comprehensive systems The company is the fore- to locally produce and market the management services covering most supplier of sophisticated RT-MAX, a mid-tier ultrasound everything from planning to instruments, with world-class system. The next year, it began installation and maintenance are reliability and precision, to the producing the RT4600, a high- offered to over 20 Samsung domestic market. Technologies tier ultrasound system, and in Group affiliates. Finally, SDS’s for measurement, computation 1995 Samsung-GE Medical telecommunications services and communication are being Systems began producing and offer a wide variety of quality integrated to create new, com- marketing CT systems. global multimedia coverage 24 prehensive solutions for clients. The company’s strict qual- hours a day. The Computer Division ity control system has earned Employees: 5,500 locally markets palmtop PCs, it ISO 9001 and EN46001 1995 Sales: $715 million inkjet printers, UNIX RISC work- certifications and has helped Tel: (82) 2-360-6000 stations and various server Samsung-GE Medical Systems Fax: (82) 2-360-6468 systems. The division leads maintain the top share of Main Businesses: systems Korea in the development of Korea’s diagnostic imaging integration, systems manage- unrestricted client/server sys- machine market. ment, CAD/CAM, geographic tems. It also holds a 48% share The medical systems busi- information systems, telecom- of the world market for UNIX ness requires advanced munications, information systems and supplies a wider technology covering both basic technology training, consulting, range of RISC systems than any and applied science to ensure on-line services other company. The division was high added value and environ- first to introduce Deskjet print- mental safety. Samsung-GE HEWLETT-PACKARD ers to Korea, helping to Medical Systems is bringing KOREA CO.,LTD. popularize color printers. It now Samsung’s excellent human Hewlett-Packard Korea was supplies the world’s best print- resources and manufacturing established in 1984 as Samsung ers and network products, expertise together with GE’s Hewlett-Packard, a joint venture Scanjet and PC servers. advanced technology to research between Hewlett-Packard and In addition to outstanding and develop new products that Samsung Electronics. The pre- products, Hewlett-Packard feature strong international sent corporate name was Korea offers clients comprehen- competitiveness. adopted in March 1995. sive service support, consulting The latest product is the This company markets and optimal solutions to suit LOGIQ-a 200, a new, super-pre- Hewlett-Packard computers, their specific needs. mium Ultrasound machine of instruments, medical diagnostic No. of Employees: 1,070 high quality and with a low price. machines and other types of 1995 Sales: $638 million It will go to international mar- analytical equipment. Tel: (82) 2-7690-114 kets in January 1997. The company’s production Fax: (82) 2-784-7084 Employees: 247 unit, Instrument Operation, Major Products: computer sys- 1995 Sales: $65 million in Seoul, Korea, has developed tems and peripherals, printers, Tel: (82) 342-406-001 and is manufacturing over instruments, medical diagnostic Fax: (82) 342-42-0423 15,000 power supply units a machines, analysis equipment, Major Products: MRI systems, year for sale worldwide. The components CT systems, X-ray systems, International Purchasing ultrasound systems, PET sys- Division, which first exported SAMSUNG-GE MEDICAL tems, gamma cameras, over $100 million in 1993, pur- SYSTEMS CO.,LTD. radiotherapy systems, patient chases electronic parts and Samsung-GE Medical Systems monitoring systems, fetal components from domestic was established in 1984 as a joint monitoring systems, defibrilla- manufacturers and exports venture between the Samsung tors, EKG systems, central them to Hewlett-Packard Group and General Electric. The piping systems production facilities around company develops, produces, the world. Samsung Electronics markets and services magnetic and Hewlett-Packard also work resonance imaging (MRI) sys- together on domestically tems, computerized tomography

71 Machin- ery

Samsung Heavy Industries derives almost half its sales outside Korea from industrial machinery and plants, offshore structures, construction equipment, vehicles and shipbuilding–including record ship orders in 1995. Samsung Aerospace Industries, which in 1995 produced the first of 120 advanced F-16s in Korea, builds on its aerospace base with operations in industrial machinery and factory automation, precision instruments and opto-electronics. Samsung Watch, enhancing its expertise and product line with new designers and technicians, is moving into Switzerland with a branch operation and the 1995 acquisition of a watch-case plant.

72 SAMSUNG has achieved the top rating for Samsung Aerospace is Japanese companies. The com- HEAVY INDUSTRIES CO.,LTD. customer satisfaction and the gaining valuable technology in pany plans to invest $13 million Samsung Heavy Industries second largest market share. numerous other areas as over the next three years, thereby (SHI) has a wide range of prod- The durability of SHI trucks was well.The company is part of one expanding machine tool sales ucts and activities, including demonstrated in a 35,000km international consortium to to $169 million a year by 1998. It industrial machinery and test drive from Vladivostok to develop new kinds of aircraft is also increasing its investment plants, shipbuilding, offshore Lisbon via Siberia during 1995. engines, and part of another to in factory automation to develop structures, construction equip- SHI operates four R&D upgrade F-5 fighters. SSA is also new robots and other value- ment, construction and centers, one for each of its main working with Bell Helicopter added systems to support the commercial vehicles. business areas. These centers of the U.S. to develop and pro- Samsung Group’s entry into the SHI’s global network spans are developing highly economi- duce the B427 helicopter. automobile business. twelve countries, including cal, next-generation ships like Other projects include compo- Employees: 9,530 five local subsidiaries and ten high-speed cargo ships and nents for satellites; the KTX-2, 1995 Sales: $1.5 billion branches, to offer customers yachts and new construction an experimental trainer aircraft; Tel: (82) 2-751-8853 around the world quick service equipment models. a twin-engine airplane made Fax: (82) 2-751-8590 and information access. In Almost half of SHI’s of composite materials; and a Main Businesses: Korea Fighter addition, SHI operates a heavy revenues is now earned interna- new mid-sized commercial Program, Korean Trainer equipment plant in the U.K., a tionally, and it continues to airliner. At the same time, SSA Experiment 2 Project, F-5 fighter tank farm in Thailand, and con- strengthen these activities.By is producing airframe parts and upgrade, satellite components, tinues to build its global sales 2001, SHI plans to have a helicopter engines for export. twin-engine composite aircraft, and after-sales service network. global network of 36 sales, pro- In the defense industry, mid-sized commercial airliners, With the completion of duction, after-sales service and Samsung Aerospace has airframe parts, helicopter co- Dock No. 3 at its Koje Shipyard R&D facilities in 29 countries. developed a self-propelled gun, development, helicopter shuttle in 1994, the capacity of 1995 Employees: 13,500 various artillery pieces and service, aircraft engine produc- ship exports increased to 1995 Sales: $3.8 billion equipment for combat engi- tion and development, 155mm $1.1 billion, making SHI one of Tel: (82) 2-3458-6100 neers. The company has also self-propelled guns, ammunition the world’s leading shipbuilders. Fax: (82) 2-3458-6264 helped modernize the Korean cars and aiming vehicles, SHI received more new ship Main Businesses: ships, off- military by supplying it with armored combat engineering orders in 1995 than ever before, shore platforms, bridges, steel multi-phase rockets and missile cars, multi-function combat sup- including major oil companies structures, energy systems, envi- propulsion systems. port cars, cameras, industrial y Chevron and Mobil as well as ronmental protection facilities, SSA has recently reorganized machinery, factory automation China’s COSCO. refineries, chemicals plants, its operations into four main systems, precision instruments, The Heidrun, a 3rd-genera- cargo and material handling business divisions–Aircraft, opto-electronics devices tion 125,000DWT shuttle tanker systems, marine engines, refrig- Industrial Machinery & Factory delivered to Conoco of the eration and air conditioning Automation Systems, Precision SAMSUNG WATCH CO.,LTD. Dupont Group, was chosen one systems, parking systems, dis- Instruments and Opto-electronics Samsung Watch Co. (SWC), of the “Best Ships of 1995” tributed control systems, Devices. Since acquiring the established in 1983, produces by leading industry journals in construction equipment, forklift Rollei camera brand, SSA has 1.8 million wristwatches, wall the U.S. and U.K. This marks trucks, commercial vehicles developed its own 4-power zoom clocks and desktop clocks the eleventh year in a row model and has set up camera a year, maintaining a 20% share that SHI-built ships have been SAMSUNG AEROSPACE plants in Mexico and China to bet- of the Korean market. so honored. INDUSTRIES CO.,LTD. ter supply overseas markets. In January 1995, SWC SHI exports heavy equip- Samsung Aerospace Industries Opto-electronics is a ended a technology-sharing ment to 49 countries through a (SSA) was established in 1977 rapidly growing business area arrangement with Seiko network of 119 dealers. In 1995, to perform aircraft engine over- that includes mini-labs, control of Japan and acquired a watch- heavy equipment exports haul and assembly. Since then, devices, charge coupled case plant (76 employees, totaled over 3,000 units, up the company has been involved devices and instruments. SSA annual sales of $7.8 million) 50% from 1994. Construction in numerous projects that has acquired a stake in Union from Nouvelle Piqueres SA in Equipment, the leading U.S. require both high technology Optical Co. of Japan, gaining Bassecourt, Switzerland in industry journal, has chosen ten and high precision. access to technology concerning order to focus production on different models of SHI excava- Samsung is the prime con- high-performance microscopes Swiss-style watches and clocks. tors, loaders and bulldozers as tractor for the Korea Fighter as well as an overseas R&D cen- Employees: 164 among the “Top 100 New Program, with plans to produce ter. The acquisition is expected 1995 Sales: $74 million Products of the Year” for the 120 advanced F-16s by 1999. The to allow SSA entry into the med- Tel: (82) 342-40-8114 past four years. first F-16 made in Korea rolled ical systems business. Fax: (82) 342-40-8312/3 Eighteen months after off the assembly line in May Samsung Aerospace is Major Products: wristwatches putting its commercial vehicles 1995 for delivery to the Republic developing new machine tools in (Rollei, Burett, Samsung, Kappa, on the domestic market, SHI of Korea Air Force. technical collaboration with Dolce) clocks (Rollei, Kappa)

73 Chemi- cals

Samsung General Chemicals, which produces everything from base olefins to composite materials and specialty chemicals, is aggressively expanding products, moving into new lines and setting up plants outside Korea. Samsung Fine Chemicals, continuing to diversify, stresses global R&D–including a new lab in Russia; facilities in China, Hungary and Germany; and Korean development and production of specialty chemicals that formerly had to be imported. Samsung Petrochemical, whose 1995 opening of a third purified terephthalic acid plant made it the world’s third-largest PTA producer, has been named a “Model Enterprise of Environmental Management” and in 1996 won ISO 14001 certification. Samsung-BP Chemicals, a joint venture with British Petroleum, is adding a vinyl acetate monomer plant in 1996 and a second acetic acid plant in 1997 as part of its sustained effort to expand and diversify.

74 SAMSUNG 1995 Sales: $850 million SAMSUNG Employees: 866 GENERAL CHEMICALS CO.,LTD. Tel: (82) 2-772-6114 FINE CHEMICALS CO.,LTD. 1995 Sales: $402 million Samsung General Chemicals Fax: (82) 2-772-6694 Samsung Fine Chemicals (SFC) Tel: (82) 2-772-1900 (SGC) operates a large Major Products: ethylene, propy- started out in 1964 as Asia’s Fax: (82) 2-772-1809 petrochemical complex with a lene, butadiene, benzene, C4 largest maker of urea fertilizer. Major Products: urea fertilizer, naphtha cracking center that can raffinates, styrene monomer, SFC has continued to diversify melamine, methylamine, turn out 500 tons of ethylene a ethylene oxide/ethylene glycol, its business and now produces dimethylfromamide, malonate, year, as well as 13 downstream low-density polyethylene, ethyl everything from general chemi- formic acid, furfuryl alcohol, plants that produce everything vinyl acetate, linear low-density cals to value-added specialty methyl chloride, chloroform, from base olefins to composite polyethylene, high-density poly- chemical products. chlorine, caustic soda, methyl materials, specialty chemicals ethylene, polypropylene, In 1995 the company com- cellulose, ethylene amines, and new materials in a single, composite materials, paraxy- pleted a production facility for and such chemical production continuous process. lene, purified terephthalic acid, tetra methyl ammonium hydrox- equipment as reactors, towers By aggressively expanding specialty chemicals, colored ide (TMAH), a compound used and columns, pressure tanks product lines as well as moving paving material (Roadmer) as a semiconductor develop- and heat exchangers into new areas not directly ment solution. A second

related to naphtha, Samsung SAMSUNG hydroxyl propyl methyl cellulose SAMSUNG-BP General Chemicals aims to PETROCHEMICAL CO.,LTD. (HPMC) plant is scheduled for CHEMICALS CO.,LTD. become one of the world’s ten Samsung PetrochemicalCo. completion in July 1996. SFC’s Samsung-BP Chemicals Co., largest chemical makers by (SPC), a joint venture of the HPMC is widely recognized in established as a joint venture early in the 21st century. More Samsung Group, Amoco world markets for its top quality. between the Samsung than 60% of SGC’s 1995 Chemical Co. and Mitsui SFC has set up an R&D lab- Group and British Petroleum, revenues came from exports to Petrochemical Industries,is the oratory at Russia’s Zelinsky produces 200,000 tons of such markets as China and world’s third-largest producer Institute of Chemistry, as part of 99.9% pure acetic acid and Southeast Asia. of purified terephthalic acid a globalization drive that already 8,500 tons of hydrogen a year. In 1995, SGC linear low- (PTA),the preferred raw material includes research and informa- The acetic acid is supplied to density polyethylene (LLDPE) for polyester. tion-gathering facilities in China, domestic makers of purified plants received ISO 9002 The company’s No. 3 Hungary and Germany. The terephthalic acid as well as certification, so now all SGC’s plant in Ulsan, Korea started up company also sponsors semi- exported to China, Taiwan and polyolefin (including high-den- operation, boosting the com- nars in cooperation with leading Southeast Asia. sity polyethylene, polypropylene pany’s total annual production overseas research institutes to To remain competitive, and low-density polyethylene) capacity to 900,000 tons. promote the commercialization Samsung-BP Chemicals is plants have been ISO 9002 certi- Currently, SPC supplies 40% of of newly developed specialty engaged in an ambitious R&D fied. Armed with its strict quality the Korean PTA market and 6% chemicals. program that includes joint control system, the company of world demand. The company operates 19 projects, technical information is now working to develop the SPC has long been widely production facilities inside the exchanges and conferences world’s very best high-density recognized as the domestic Ulsan industrial complex. These for presenting research results. polyethylene and bi-axially leader in environmental manage- plants produce 42 products, By 2005, the company oriented polypropylene film. ment. The company has including specialty chemicals, aims to be one of the world’s SGC set up a new R&D cen- switched to clean burning fuel industrial-use chemicals, phar- top three producers of acetyls. ter at the Daeduk Research and adopted the latest waste maceutical intermediates, Employees: 210 Complex, outside Taejon, Korea water treatment technology for organic compounds and inter- 1995 Sales: $154 million in April 1995. The center is its new No. 3 plant. SPC has mediate materials for pesticides Tel: (82) 2-753-5644 developing new materials, com- been named a “Model Enterprise and herbicides. Ten of the spe- Fax: (82) 2-753-8338 pounds for use in electronics, of Environmental Operation” by cialty chemicals, including Major Products: acetic acid, environmentally friendly resins, the Korean government for three HPMC, were developed by SFC vinyl acetate monomer new energy sources and spe- years in a row, from 1992–1994. and are being produced for the cialty chemicals. The facility will In August 1995, SPC became the first time in Korea. By producing maximize the synergy effect first Korean company to be des- them locally, Korean industry among all chemical-related ignated as an “Environmentally- can cut production costs and Samsung affiliates. As of year- friendly Enterprise.” Samsung Fine Chemicals can end 1995, the group employed Employees: 545 export new products that long over 400 researchers who spe- 1995 Sales: $810 million had been the exclusive domain cialize in chemicals, and will Tel: (82) 2-772-6300 of multinational specialty chemi- increase that to more than 3,000 Fax: (82) 2-754-5620 cal makers. technicians by the year 2000. Major Product: purified tereph- SFC aims to record annual Employees: 1,600 thalic acid sales of $1.3 billion by 2000.

75 Finance

Samsung Life Insurance posted the best 1995 results of any Korean financial institution in total assets, policies in force and premiums paid. Samsung Fire & Marine Insurance restructured to enhance its focus on customers and quality. Samsung Card Co., adding services for competitive advantage, is expanding internationally with U.S., Japanese and Chinese agreements. Samsung Securities ranks first in Korea in institutional accounts and is second in bond trading as well as underwriting.

76 SAMSUNG nationwide, provides free Tel: (82) 2-758-7114 payment guarantees, insurance LIFE INSURANCE CO.,LTD. lunches to elderly persons in Fax: (82) 2-758-7803 sales, ticket booking and Samsung Life Insurance (SLI) need and sponsors corrective Main Businesses: fire insurance, advance sales, flower delivery, faced more severe competition surgery for persons with physi- automobile insurance, marine rentals, moving from domestic life insurance cal deformities. insurance, casualty insurance, companies than ever before. To Employees: 79,063 long-term insurance, private SAMSUNG remain competitive, SLI initiated 1995 Sales: $15.4 billion annuity insurance SECURITIES CO.,LTD. the industry’s first quality assur- Tel: (82) 2-751-8000 Samsung Securities Co. (SSC) ance system and pursued a Fax: (82) 2-751-8100 SAMSUNG CARD CO.,LTD. has achieved a strong reputation quality-oriented management Major Products: life insurance, Samsung Card Co., Ltd., estab- for reliability among investors. approach. Results for the year real estate lished in 1988 to help develop a SSC ranks 12th in overall perfor- were the top among all domestic credit-based society in Korea, mance among Korea’s 32 financial institutions: $489 bil- SAMSUNG FIRE & MARINE makes customers and service its securities firms and is first in the lion in business in force, $29.2 INSURANCE CO.,LTD. top priorities. nation in institutional investor billion in total assets and $12.5 Samsung Fire & Marine Insurance As of the end of 1995, accounts and ranks second in billion in premiums received. (SF&MI) leads Korea’s non-life Samsung Card had 3.5 million bond trading and underwriting. Another industry first in insurance business. cardholders. Gross volume for Samsung Securities is cur- 1995 was to achieve business in In-house campaigns in the year was $8.4 billion and the rently focusing on strengthening force of more than 10 million 1995 helped further improve company recorded over $2.6 bil- its institutional investment policies. Samsung has rated the service quality. The organization lion in total assets. business in order to achieve a highest overall among domestic was restructured to make it Samsung Card continues to balanced competitiveness in the life insurance companies for the more customer-oriented and initiate new services ahead of the face of the ongoing market dereg- past ten years and the highest a quality assurance system was competition in the domestic ulation. Samsung Securities sales record of any Korean adopted. As a result of these market to offer cardholders the intends to be one of the nation’s financial institution for nine efforts, Samsung Fire & Marine greatest convenience. It issued top five in the industry in the 21st years in a row. became Korea’s first property the Samsung Automobile Card; century, and is developing Liaison offices were set up and casualty insurer to achieve increased the number of interest- international brokerage, under- in Beijing and Hong Kong in the $2.6 billion milestone in free installment sales estab- writing and bond trading as 1995, and the company is cur- total sales and assets. lishments; adopted a “one-stop” “strategic” business areas. rently investing in stocks and A new personnel system customer service system; intro- SSC has invested heavily in bonds in 15 countries. was instituted to make the best duced a service warranty system. computer systems and research The Samsung Finance use of individual talent by send- Samsung Card has become activities to quickly provide Plaza offers customers access to ing employees to universities Korea’s first credit card company investors with accurate infor- the services of Samsung Life outside Korea to be trained as to open overseas offices, estab- mation. In 1995, it ran a series Insurance, Samsung Fire & accountants, underwriters, loss lishing branches in New York of tests in preparation for the Marine Insurance, Samsung adjusters or risk managers. A and Tokyo. Arrangements have opening of the KOSPI 200 Securities and Samsung Card– similar internship program has been concluded with Union futures market. SSC also all under one roof for greater also been opened for people Credit Card of Japan and China became the first security com- convenience. SLI has opened a interested in working in Korea. International Travel Service to pany in Korea to invest in a new training course for agents in In 1995, Samsung Fire & begin internationalizing joint venture with an overseas cooperation with Ehwa Women’s Marine sponsored various cul- Samsung credit cards. partner in order to expand its University in Seoul to upgrade tural and sports events, donated The company is also break- investment and trust business. customer services and enhance guide dogs to visually impaired ing new ground by developing a Employees: 838 professionalism. persons and dispatched interna- multi-purpose IC card and is 1995 Sales: $155 million Samsung Life continues to tional social service teams to also getting involved in con- Tel: (82) 2-318-4788 develop new products to satisfy help people in Vietnam and sumer finance, home shopping, Fax: (82) 2-726-0290 changing customer needs and Myanmar. travel, insurance and informa- Major Businesses: stock and to create new markets. One of By the year 2000, Samsung tion services as part of efforts to bond brokerage, securities its annuity policies was pur- Fire & Marine Insurance plans offer products and services of savings products, bond manage- chased by 830,000 persons in to attain a total direct premium greater convenience. ment funds, repurchase 1995 alone, winning SLI the income of $8.8 billion, a work Employees: 2,300 agreements, certificates of grand prize for financial prod- force of over 6,400 employees, a 1995 Sales: 534 million deposit ucts by the Economic Daily policy sales force of over 44,000 Tel: (82) 2-727-8000 newspaper. (international and domestic) Fax: (82) 2-753-1047 The Samsung Life and total assets of $13.8 billion. Major Businesses: cash advances, Insurance Welfare Foundation Employees: 4,218 installment purchases, loans, operates 18 daycare centers 1995 Sales: $2.8 billion financing, travel arrangements,

77 Other Samsung Companies

Samsung Motors, established in March 1995 as a major entry into the automobile business, began work on its state-of-the-art assembly plant. Samsung Corporation, our global trading company, merged with our Engineering & Construction affiliate; in 1995 it also extended its retailing innovations. Cheil Industries, integrating its textile and synthetics business, is moving into new kinds of fabrics, home-building materials and interior decoration. Samsung Advanced Institute of Technology in 1995 won Korea’s Presidential Prize in the multimedia category.

78 SAMSUNG MOTORS INC. satisfaction and offer its employ- buildings when completed in Samsung Motors Inc., estab- ees a high quality of life. 1996), and the 63-story Royal lished on March 28, 1995 with an Employees: 3,060 Charoen Krung Building initial capital investment of $125 Tel: (82) 2-3707-5223 in Thailand. million, is now heavily engaged Fax: (82) 2-3707-5262 Samsung Corp.’s in building a plant on a 1.6 Main Businesses: manufacture Construction & Engineering million-square-meter site in and sale of passenger cars Division is Korea’s first con- the Shinho Industrial Complex struction-related concern to near Pusan. The plant will SAMSUNG CORPORATION receive ISO 14001 DIS certifica- be equipped with state-of-the-art Samsung Corporation was des- tion for all operations–civil facilities. And will be the first ignated as Korea’s first General works, building construction, automobile plant in Korea with Trading Company by the Korean housing (apartment) construc- the Intelligent Body-assembly government in 1975. Since then tion, plant construction and System–a flexible, computer- the company has continued to land development. To ensure controlled production line capable develop new overseas markets, top quality work, the division of turning out up to eight differ- boosting Korea’s foreign trading has regular inspections by ent models, from subcompact activities. In 1995, Samsung outside supervisory teams and to large cars. The plant is sched- Corp. sold $16.5 billion worth of has initiated the “lifetime uled for completion in goods in more than 150 coun- quality assurance system.” November 1996 and will start tries, accounting for 13% of all The Motor Sales & up production in early 1998, Korean exports. Currently the Marketing Division is charged producing 80,000 units of pas- company has 109 overseas with marketing and servicing senger cars in the first year. offices. Samsung Corp., with its passenger cars developed and The investment by 2002 will be 58-year history, has experience built by Samsung Motors starting $5.5 billion for parts and pro- not only in trading but also in in 1998. The division will employ duction facilities. raising capital, developing nat- a unique approach to automo- Samsung Motors will intro- ural resources, and organizing bile sales and after-sales service duce a new car model every year large-scale projects. to differentiate Samsung from after initial production start-up. Samsung Corp. has under- other automakers and will better The company will focus on gone considerable restructuring, satisfy changing customer multi-purpose vehicles, station including the merger of Samsung requirements. Integrated service wagons, hatchbacks, minicars, Engineering & Construction Co. centers will be operated in Korea subcompacts, compact and large and Samsung Corp. The restruc- to provide a complete line of models–increasing its exports tured company has four main services, and Samsung Corp’s. and giving customers a wider divisions: Trade, Construction & extensive international network selection of cars to choose from. Engineering, Motor Sales & will serve to export Samsung- By 2010, annual produc- Marketing, and Fashion & Retail. built automobiles. tion will be 1.5 million units, The Trade Division pro- The Fashion & Retail as Samsung Motors works to motes the sale of Korean-made Division extends Samsung Corp.’s be one of the world’s top ten products in world markets and existing apparel production automakers. imports high quality products sales operations.Samsung Corp. Samsung Motors has also and sophisticated technology offers a new form of retailing established offices in Detroit, into Korea. designed from the shoppers’ Tokyo and Frankfurt, begun The Construction & perspective. The Fashion & construction of the Kiheung Engineering Division carries out Retail Division is adopting new Technology Center and opened construction, civil works, land retailing approaches to elimi- Samsung Design America, Inc. development and industrial nate complex distribution in California to increase its plant projects at home and procedures and thereby offer design capabilities and obtain internationally. The division has goods at lower prices to the the latest information on export stepped up its involvement in consumer. Retail outlets feature markets. Samsung Motors plans overseas development and is a comfortable atmosphere and to set up four R&D centers in preparing to begin nuclear power a variety of leisure activities to three countries. plant construction. make shopping more enjoyable. Backed by teamwork and a Recent projects include the The new UTOO Zone thorough Quality, Cost & Delivery Petronas Tower #2 of the Kuala store in Seoul’s fashionable (QCD) system, Samsung Motors Lumpur City Centre (it’s twin Myungdong District specializes intends to provide full customer towers will be the world’s tallest in fashion clothing for young

79 women and is setting Environment R&D Center, customer service through the a new standard in Korea’s which is working on technology “Topfas” teams that specialize in retail industry. for sewage treatment, water treating customers with friendli- Employees: 11,025 purification, industrial waste ness and professionalism. 1995 Sales: $28 billion incineration, alcohol fuel pro- In 1995, domestic sales of Tel: (82) 2-751-3345 duction and air pollution control CII’s Galaxy line of men’s suits Fax: (82) 2-728-4000 systems. These efforts have won exceeded $130 million, topping Main Businesses: trade, con- the company the Korean govern- all competing brands. Cheil also struction, retail, clothing ment’s first Environmental introduced its new line of golf manufacture and sale Technology Prize, awarded in wear, Vincere and Ivy Club, a new December 1995. line of clothing for students. SAMSUNG The company recently As part of the company’s new, ENGINEERING CO.,LTD. established a new environmen- more open management style, Samsung Engineering Co., Ltd. tal R&D center in New York employees now can meet monthly (SECL) was established in January to further its developmental with their managers in an informal 1970 as part of the government’s efforts in this critical area. setting to discuss issues freely. policy to achieve technological Employees: 1,800 Employees: 4,315 self-sufficiency in the chemical 1995 Sales: $972 million 1995 Sales: $1.2 billion and heavy industries. Tel: (82) 2-3458-3000 Tel: (82) 2-751-3355 In the 1970s, SECL focused Fax: (82) 2-3458-4047/50 Fax: (82) 2-527-2100 on the design and construction Main Businesses: design, Main Businesses: yarn, wool, of oil refineries, fertilizer plants, procurement, construction worsted and woolen fabrics, car- and petrochemical plants. In the supervision and operation pets, men’s and ladies’ apparel, 1980s, it expanded into facilities management for refineries, general-use synthetic resins, for electronics, textiles and petrochemical plants, gas pro- engineering plastics foods as well as power plants duction facilities, fertilizer and and environmental protection chemical plants, clean rooms, JOONG-ANG facilities. In the 1990s, Samsung power plants, food processing DEVELOPMENT CO.,LTD. Engineering is exporting plants, waste treatment plants, Joong-Ang Development Co.,Ltd. plants and technology on a dust collectors, incinerators (JDC) operates Everland, whose turnkey basis to markets such as more than 8 million visitors a Southeast Asia and China. CHEIL INDUSTRIES INC. year make it the world’s eighth- SECL is now building a Cheil Industries Inc. (CII) pro- largest theme park. The $350 million ethylene plant and duces synthetic fabric, high company is also involved in lube base oil plant in Thailand, fashion garments and sophisti- resorts and leisure, building a low-density polyethylene plant cated synthetic materials that management, golf courses and in Singapore and an ethylene are a blend of aesthetics and food services, foodstuff oxide/ethylene glycol plant in technology. Business lines have management, landscaping, and Indonesia. The company is been strategically integrated to is preparing for a new round of building an ethylene plant and promote corporate growth. New growth to launch it into the an ethylene oxide/ethylene areas being explored include 21st century. glycol plant for Jilin Chemical new kinds of fabrics, building In 1996, the name of the in China and a gas separation materials for the home and Yong-in Farmland, run by JDC plant in Thailand. interior decoration products. for 20 years, was changed to Domestically, SECL is Cheil Industries has devel- Everland representing the overseeing the construction oped Lansmere 170, the world’s Yong-in resort complex, and the of a new refinery for Yukong, an first wool fabric with a yarn count Farmland name was changed to ethylene glycol plant for Honam of 130 (130 meters of yarn from Festival World. The Everland Petrochemical and an expansion a single gram of wool fibers). Speedway, Korea’s only on-road of the Jinro brewery. The com- This is the finest fabric of its kind race track, changed its name pany provides the full range of in the world marketplace. from Farmland Motor Park. All of services, from design and pro- CII maintains local sub- these changes put Everland well curement to construction sidiaries in Italy, the U.S. and on the way to becoming a full- supervision and operation man- Australia, and exchanges fashion- fledged resort town. agement. related information through Other park attractions Samsung Engineering these channels. In Korea, the include Safari World; the Global is operating Korea’s first company has enhanced its Fair shopping district; the Fable

80 Fantasy Parade and Miraculous program to keep the Shilla one company became Korea’s first Laser Show. The park also fea- of the world’s best hotels. press-related company to begin tures the Four Seasons’ Garden, The company’s operations offering an Internet news service. with special flower festivals to include the luxurious resort It has also initiated J-Vision, coincide with each season. hotel, the Shilla Cheju, catering outdoor electronic news boards Joong-Ang Development and duty-free shopping, sports with moving pictures, estab- manages two of Korea’s most and leisure and hotel manage- lished a variety of specialized exclusive golf courses, the 30- ment consulting. data bases, and is expanding its year-old Anyang Country Club Employees: 2,500 CD-ROM publishing activities. near Seoul and the Dongrae 1995 Sales: $324 million Joong-Ang Ilbo encourages Country Club outside of Pusan. Tel: (82) 2-233-3131 its employees to take part in The Building Engineering Fax: (82) 2-233-5073 community service and has Division, which has over 30 years’ Main Businesses: 5-star deluxe launched the Newspaper in experience in building manage- hotel in Seoul, 5-star resort hotel Education (NIE) and Internet ment, has teamed up with Koll and casino on Cheju Island, in Education (IIE) campaigns Co. of the U.S. to offer building duty-free shops in Seoul and on to support young people. The management consulting services. Cheju Island, outside restau- company also sponsors an The division is also involved in rants, catering services environmental preservation alternative energy development, exposition each year. such as solar power. THE JOONG-ANG ILBO Employees: 1,507 The Food Service and Food In addition to a daily newspaper 1995 Sales: $512 million Management Divisions provide circulation of 2.2 million, the Tel: (82) 2-751-5114/9114 catering services, supply restau- company publishes more than Fax: (82) 2-751-9709 rants and develop new organic ten magazines and trade jour- Main Businesses: the Joong-Ang farming methods. nals, including the Newsweek Ilbo, WIN, The Economist, Employees: 2,700 Hankuk Pan (the Korean edition Newsweek Hankuk Pan, 1995 Sales: $381 million of Newsweek magazine) and the Stereo Music, Art Monthly, Tel: (82) 335-30-8011 Economist. In addition, the Literary Joong-Ang, Seoul Eye, Fax: (82) 335-30-8019 Joong-Ang On-line Information Labelle, CALLA, Ceci, JOINS, Main Businesses: resort devel- and News Service (JOINS) Ho-Am Art Hall opment and operation, golf keeps subscribers informed of course management, building world events on a real time basis CHEIL COMMUNICATIONS INC. management and consulting for via the Internet. Cheil Communications Inc. (CCI) every sectors, alternative energy, The Joong-Ang Ilbo was is involved in a wide range of food services the first newspaper in Korea activities, including advertising to print in a section format and on planning and production, public HOTEL SHILLA CO.,LTD. its 30th anniversary, added a new relations, sales promotion, sport- The Hotel Shilla was established morning edition. On October 9, ing events, films and large-scale in 1973 to act as a “civilian diplo- Hangul Day (a holiday commem- promotional events such as trade mat representing Korea to the orating the Korean alphabet), the shows. CCI is Korea’s largest world.” The hotel was built on newspaper was printed in all hori- advertising agency and has led the historic site of the Yeong Bin zontal lines, facilitating reading the development of the domestic Gwan, a guest house used for and comprehension. advertising industry. The com- foreign dignitaries visiting Korea Currently, the company pany is now among the world’s in traditional times. operates two bureaus and top twenty-five advertising firms Leading financial publica- three branches overseas and and it plans to be one of the ten tions such as Institutional has dispatched over 20 foreign largest advertising agencies early Investor (U.S.) and Euromoney correspondents around the in the 21st century. (U.K.) have repeatedly ranked world. Information is also sup- Cheil boasts the largest the Hotel Shilla as one of the plied through 26 overseas wire data bank among Korean adver- world’s best. Now 23 years old, services and newspaper compa- tising companies; its marketing the hotel has launched a new nies having cooperative ties with research center carries out corporate identity campaign, the Joong-Ang Ilbo. Korea’s largest and most thor- changing its logo from the Yeong The Joong-Ang Ilbo is ough nationwide consumer Bin Gwan symbol to the Rose of increasing its multimedia invest- survey every year to support Sharon (Korea’s national flower) ments to stay abreast of the advertising activities. Some of and has launched an ambitious latest trends. In March 1995, the CCI’s advertising recent clients

81 include Pulmuwon Foods Co., The Social Systems Regency Production Inc. and Employees: 700 Ltd., Bukwang Pharmaceutical Engineering Institute, established Warner Home Video. SEG is Tel: (82) 2-3458-1114 Ind. Co., Ltd., Cheil Foods & in 1993 as S1’s R&D, unit has also strengthening ties with Fax: (82) 2-3458-1410 Chemicals Inc., and Samsung developed unique electronic domestic movie production Main Businesses: movie produc- Corporation. application systems and expects companies to improve the qual- tion and distribution, cable TV Creativity is the most to launch its Home Security ity of films made in Korea. broadcasting, music production important factor behind Cheil’s System in the second half of 1996. Ultimately SEG plans to estab- and distribution, laser discs, success. CCI’s Creative Teams S1 also is developing its lish a nationwide theater chain video CDs win 30%-50% of all domestic “system engineering” business in Korea. advertising awards every year, with advanced technologies and SEG’s music business SAMSUNG LIONS and over 90% of the annual for- highly experienced personnel for includes the production and The Samsung Lions baseball eign advertising awards won by applications in the public sector distribution of records, tapes, team was organized in 1982 and all Korean agencies. Cheil has (including airports, harbors, the CDs, video CDs and laser discs, is the franchise in Taegu, the won more than 70 Clio, Cannes, military, etc.) as well as in private as well as presenting live per- third largest city in Korea. New York Festival and other industry. formances. SEG has established The Samsung Lions has world-renowned advertising S1 Corporation contributes itself as the Korean industry been a leading influence in the competitions. to the community in many ways. leader by working closely with development of Korean profes- Cheil Communications’ An in-house Social Services major domestic production sional baseball, capturing the global network connects Korea Group is involved in such activi- companies and is moving into Korean Championship in 1985. with the Americas, Europe, the ties as building public rest international markets. In In 1995, it completed the Middle East and Asia. This net- rooms, helping needy families, addition, the company is build- Lions Ballpark. With an indoor work helps the company develop promoting blood drives, spon- ing world-class performing practice facility that includes new markets for Korean clients. soring environmental protection arts centers. a weight room, swimming pool CCI has also maintained a tech- campaigns and supporting SEG operates two cable and dormitory rooms for nology-sharing arrangement social welfare institutions. channels–Catch One, Korea’s team members, it is the largest with Hakuhodo of Japan since Employees: 3,755 only premium cable movie baseball facility in Asia. 1973 and has a joint venture with 1995 Sales: $223 million channel, and the Q Channel, The home ballpark also Bozell of the U.S.. Tel: (82) 2-3670-8146 which offers documentaries. features advanced colorful Employees: 1,026 Fax: (82) 2-3670-8149 To secure the best programs electronic signs, artificial turf, 1995 Billings: $806 million Main Businesses: electronic for its cable TV channels, SEG and services offered to fans Tel: (82) 2-7240-303 security systems, including local has contracts with 20th Century that are second to none. Fax: (82) 2-7240-108 security and closed circuit TV Fox Telecommunications Employees: 60 Main Businesses: planning, pro- systems; security system design, International, Inc; Warner 1995 Sales: $198 million duction and execution of TV, installation and consulting; elec- Brothers International Television; Tel: (82) 2-563-4970 radio, newspaper, magazine, tronic surveillance systems Buena Vista International, Inc.; Fax: (82) 2-539-7023 outdoor and transit advertising, Paramount Pictures International; Main Businesses: professional sales promotion, public rela- SAMSUNG MCA International and the baseball team, sports center tions, research, corporate ENTERTAINMENT GROUP Discovery Channel. Meanwhile, identity programs, marketing, Business divisions related to the SEG is moving into satellite SAMSUNG MEDICAL CENTER and customized services movie and entertainment indus- broadcasting, pay-for-view, Samsung Medical Center is try at various Samsung Group video-on-demand and other new responsible for three general hos- S1 CORPORATION affiliates recently merged to forms of broadcasting. pitals (two in Seoul and one in S1 Corporation was established form the Samsung Entertainment SEG maintains cooperative Masan) and a bioscience research in 1981 as Korea’s first full- Group (SEG), the first company ties with Korea’s leading univer- institute. SMC’s hospitals have a service security company and of its kind in Korea. SEG’s vision sities to help prepare young combined total of 2,430 beds, are remains the nation’s biggest. It is to emerge as one of the people for the entertainment staffed with topnotch personnel is also the nation’s first security leading entertainment com- business. To promote the and include state-of-the-art company to be listed on the panies by 2010. domestic movie business and facilities such as a prescription stock market. Operations cover SEG’s film business help make Korean culture Order Communication System, over 121 Korean cities and includes movie production and and art better known interna- Picture Archiving and Communi- towns, offering security services distribution, theater operation tionally, SEG is also sponsoring cations System, Precision to more than 60,000 customers. and home video rental and various events such as the Clinical Pathology Systems, and It has close to 3,800 personnel, sales. Samsung has built a firm Samsung Entertainment Group automated material handling over 300 emergency dispatch foundation for foreign movie Film Scenario Contest, the Seoul systems. SMC takes advantage vehicles and state-of-the-art sales and distribution in Korea Short Film Festival and the of the latest medical technology to electronic systems and com- through strategic alliances with Seoul Documentary Film and provide the very best treatment puter networks. such industry giants as New Video Festival. and services to patients.

82 Samsung Medical Center the sections of society that activities at each group affiliate. are working on medical imaging is prepared to share its facilities need it most, as it carries out Consulting services are also systems and digital hearing aids. and research results with its mission of contributing to offered to affiliates to help them The chemical unit otherKorean hospitals to elevate social development. develop specific training pro- researches petrochemical Korea’s medical profession. An outstanding research grams to address specific needs. processes, metallocene catalysts The company is training its staff infrastructure and top notch Employees: 170 and other areas in the petro- and initiating research to research personnel provide the Tel: (82) 2-238-3485 chemical industry as well as contribute to a better quality strength for SERI to achieve Fax: (82) 335-30-3401/2 environmentally-friendly and life for people everywhere. its goals. Main Activities: recruitment, special-function materials, Employees: 5,500 Employees: 154 training photopolymers, conducting Tel: (82) 2-3410-2114 Tel: (82) 2-728-8000 polymers and other new materi- Fax: (82) 2-3410-3159 Fax: (82) 2-728-8005 SAMSUNG ADVANCED als, as well as the synthesis of Main Businesses: Samsung Main Activities: research and INSTITUTE OF TECHNOLOGY organic intermediates, environ- Medical Center (main hospital), policy development, technology The Samsung Advanced mental biotechnology, and Kangbuk Samsung Hospital, exchange and market research, Institute of Technology (SAIT) is biotransformation. Masan Samsung Hospital, management training, the Samsung Group’s central SAIT’s vision is to improve Samsung Bioscience Research operational troubleshooting, research organization, estab- the quality of people’s lives Institute publishing papers on domestic lished in October 1987 to through research and thereby and foreign business develop the core technology that develop into one of the world’s SAMSUNG ECONOMIC and economies, international will lead the group into the next leading R&D institutes. RESEARCH INSTITUTE academic exchanges century. Using “Breakthrough” Employees: 900 The Samsung Economic as their motto, over 900 Tel: (82) 2-744-0011 Research Institute (SERI) is the SAMSUNG HUMAN RESOURCES researchers work in one of three (82) 331-280-9114 largest private institution of DEVELOPMENT CENTER main areas: electronics, bio-med- Fax: (82) 2-744-6217 its kind in Korea. It was estab- The Samsung Human Resources icine and chemicals. The overall (82) 331-280-9099 lished in 1986 to support the Development Center (HRDC) effect and applications of their Main Research Areas: electron- Samsung Group’s global busi- is responsible for developing efforts within the next decade is ics, bio-medicine, chemicals ness activities and to suggest Samsung employees and foster- expected to be enormous. economic policy strategies ing the Group’s corporate The electronics unit SAMSUNG to the government for national culture. HRDC manages four focuses on audio & video input/ FOUNDATION OF CULTURE and social development. institutions: the main training output, software, super-high- The Samsung Foundation of SERI has been reorganized center (Changjo Kwan), the live- speed data processing, Culture was founded to cultivate into three main sections: a in foreign languages training electronics-related materials and culture in all its forms in order stronger policy research unit, center (Ho-Am Kwan), the devices, “mechatronics” (elec- to promote a balanced develop- a domestic and overseas Advanced Technology Training tronics + mechanics technology ment of society and the human macroeconomics research unit Center and the Global interface), “bio-electronics,” spirit. For more than 30 years, and a corporate management Management Institute. energy and automotive electron- the foundation has worked support research unit. The training system is ics. Research successes to date to uncover and preserve lost As a private think-tank, designed to meet the needs of include a text-to-speech synthe- parts of Korea’s rich cultural SERI is in a different position employees through every stage sizing computer for the visually heritage and to rekindle popular than the government-run of their careers at Samsung. impaired, a digital video disc interest in this heritage. It has research institutions, yet it is Programs include basic training recorder (D-VDR), erbium sponsored art exhibits and also differentiated from the cor- for new recruits, training to doped fiber amplifiers, and blue supported a wide range of cul- porate-centered research units prepare employees who have laser diodes. The D-VDR won tural activities. at other private enterprises. been promoted to new levels of the Korean government’s The Ho-Am Art Museum, Systematic research results in responsibility, and a course to Presidential Prize in the opened in 1982, houses over theories that contribute to the prepare senior managers to Multimedia category for 1995. 15,000 art objects and historical nation as well as to its enter- become CEOs in the 21st century. The bio-medical unit is relics, including paintings, prises and people. Research Other courses prepare involved in basic medicine ceramics and handicrafts. The results are widely shared among employees to be more effective clinical medicine and clinical collection includes 91 pieces the general population as well. in the international arena. These biomedical engineering. The that have been designated as The Samsung Economic courses teach technical skills, focus of the medical research is either Cultural Treasures or Research Institute offers sugges- foreign languages and the like. on the human immune systems, National Treasures by the tions on strategies and A group-level training gene therapy, and forms of can- Korean government. directions for Korea to become program is also designed to cer and other diseases that still The Ho-Am Art Gallery, a fully developed nation in develop professional in-house have no known cure. Clinical taken over by the Samsung the 21st century and supports trainers and to support training bio-medical engineering experts Foundation of Culture in 1992,

83 has sponsored a series of exhibits One of the most important of main trends in Korea’s art his- areas of involvement is provid- tory as well as modern art trends ing daycare for the children of around the world. low-income families with work- The Samsung Foundation ing mothers. of Culture presents various The My Home Way Project, prizes to encourage new talent. is also aimed at low-income It sponsors the Korean families, provides financial Traditional Music Contest and support and helps participants the Grand Bell Awards Film learn a trade so they can develop Festival, the largest event sup- economic security and become porting the Korean movie homeowners. industry. The Foundation also The Samsung Center for sponsors the annual Samsung Early Education & Development Prize for Literature. is responsible for developing new The Samsung Foundation programs and teaching aids for of Culture also supports acade- use in the daycare centers. It also mic activities related to Korean provides ongoing training for Studies. A recent project of note daycare providers. has been the translation into The Samsung Welfare English of the Tripitaka Koreana Foundation provides financial (13th century woodblock support for social welfare activi- engravings of the complete ties nationwide. It also sends Buddhist canon). The Tripitaka persons overseas for specialized Koreana was designated as training, sponsors a youth vol- a “World Heritage” by UNESCO unteer corps and helps orphaned in December 1995. teenagers who must take care of The MAMPIST program is their younger siblings. designed to educate young pro- The foundation’s “Filial fessionals who will lead cultural Piety Prize” honors those who and artistic activities in the future. have exemplified this virtue and Education is conducted annually hope to inspire others to respect in six fields of culture and to this traditional value. The the arts: music, art, movie, play, Ho-Am Prize (Korea’s version of dance and arts management. the Nobel Prize) is given to indi- Employees: 187 viduals or groups who have Tel: (82) 2-750-7850/9 made outstanding contributions Fax: (82) 2-750-7827 to society or who have achieved Main Activities: Ho-Am Art exceptional results in research. Museum, Ho-Am Art Gallery, It currently covers six categories: Samsung Modern Art Museum, Basic Science, Engineering, Samsung Children’s Museum, Medical Science, Social Services, Samsung Prize for Literature, the Arts, and Special Awards. Grand Bell Awards Film Festival, To enhance its prestige, Korean Traditional Music the Ho-Am Prize Committee, Contest, publishing, MAMPIST, made up of prominent social support for Korean studies, con- leaders, was formed in 1995 to struction of the Tokto Hall take charge of all activities related to managing the Prize. SAMSUNG WELFARE Employees: 38 FOUNDATION Tel: (82) 2-259-7842/50 The Samsung Welfare Fax: (82) 2-259-7880 Foundation, established in 1989, Main Activities: child care, My aims to provide hope to the Home Way Project, teenager underprivileged, and many of volunteer program, Ho-Am its activities help children and Prize, Filial Piety Prize, support young adults. for social welfare programs

84 INTRODUCTION to FINANCIAL DATA

THE SAMSUNG GROUP

NET SALES TOTAL ASSETS EXPORTS NET INCOME dollars in billions dollars in billions dollars in billions dollars in millions

87.0 86.8 39.7 3,802

63.9 64.0 29.3

51.3 48.9 50.6 48.2 21.0 43.9 43.5 18.6 17.9 1,681

521 348 375

91 92 93 94 95 91 92 93 94 95 91 92 93 94 95 91 92 93 94 95

RETURN ON AVERAGE SALES by SECTOR STOCKHOLDERS EQUITY EMPLOYEES dollars in millions percent thousands

b c

23.0 233

206 189 191 183 d 16.0

7.0 6.0 6.0 e

91 92 93 94 95 91 92 93 94 95

a ELECTRONICS: $26.7 BILLION(30.7%) b MACHINERY: $5.4 BILLION (6.2%) c CHEMICALS: $2.1 BILLION (2.4%) d FINANCE $19.8 BILLION(22.8%) e OTHER SAMSUNG COMPANIES:* $33.0 BILLION(37.9%)

* including trade and construction

85 COMBINED BALANCE SHEET

THE SAMSUNG GROUP

W O N W O N W O N US DOLLAR ECU millions millions millions thousands thousands at year-end 1993 1994 1995 1995 1995

Current assets

Cash and bank deposits 2,024,171 2,939,225 3,966,210 5,119,672 3,896,250

Marketable securities 868,616 1,089,230 8,431,036 10,882,969 8,282,320

Notes receivable and accounts receivable 2,791,702 2,884,510 4,822,651 6,225,185 4,737,584

Inventories 2,453,769 2,810,598 4,245,828 5,480,609 4,170,936

Other 13,519,924 17,125,157 20,966,375 27,063,863 20,596,548

Total current assets 21,658,182 26,848,720 42,432,100 54,772,299 41,683,637

Investments 8,042,291 9,790,292 7,531,026 9,721,216 7,398,186

Non-current assets

Less accumulated depreciation of land 2,308,413 2,738,430 3,179,946 4,104,745 3,123,855

Buildings and structures 2,940,261 3,730,012 4,373,387 5,645,265 4,296,244

Machinery and equipment 3,277,207 3,873,039 5,993,259 7,736,232 5,887,543

Construction in progress 1,002,295 1,785,046 2,809,290 3,626,294 2,759,737

Other 1,137,109 1,447,463 554,313 715,520 544,535

Total non-current assets 10,665,285 13,575,990 16,910,195 21,828,056 16,611,915

Other assets 598,763 278,359 359,181 463,639 352,845

Total 40,964,521 50,491,361 67,232,502 86,785,210 66,046,583

86 W O N W O N W O N US DOLLAR ECU millions millions millions thousands thousands at year-end 1993 1994 1995 1995 1995

Current liabilities Notes payable 966,971 1,175,058 828,157 1,069,003 813,549 Trade accounts payable 960,115 1,145,167 1,677,186 2,164,949 1,647,602 Short-term loans 3,733,629 4,194,316 6,074,671 7,841,321 5,967,519 Current portion of long-term debt 1,767,731 1,904,790 24,667,546 31,841,417 24,232,433 Advances from customers 866,346 1,284,448 1,495,624 1,930,585 1,469,243 Other 3,427,853 4,894,207 5,824,611 7,518,537 5,721,870 Total current liabilities 11,722,645 14,597,986 40,567,795 52,365,813 39,852,217

Non-current liabilities Debentures 2,801,985 3,240,258 4,180,990 5,396,915 4,107,241 Long-term debt 2,513,516 3,268,448 5,253,172 6,780,911 5,160,511 Reserves 947,774 1,269,448 1,574,014 2,031,772 1,546,250 Other 17,077,841 19,674,877 2,636,255 3,402,937 2,589,754 Total non-current liabilities 23,341,116 27,453,067 13,644,431 17,612,535 13,403,756

Stockholders’ equity Capital stock 1,839,840 2,274,756 3,095,616 3,995,890 3,041,012 Capital surplus 2,495,667 3,467,425 4,559,036 5,884,905 4,478,619 Retained earnings 1,565,253 2,698,127 5,458,107 7,045,446 5,361,831 Capital adjustment — — (92,483) (119,379) (90,852) Total stockholders’ equity 5,900,760 8,440,308 13,020,276 16,806,862 12,790,610 Total 40,964,521 50,491,361 67,232,502 86,785,210 66,046,583

87 COMBINED

STATEMENT of INCOME

THE SAMSUNG GROUP

W O N W O N W O N US DOLLAR ECU millions millions millions thousands thousands for the year 1993 1994 1995 1995 1995

Income Net sales 41,364,613 51,314,980 67,078,763 86,970,702 66,187,749 Domestic 24,609,360 27,736,873 36,490,144 47,311,150 36,005,442 Export 16,755,253 23,578,107 30,588,619 39,659,552 30,182,307 Other income 648,872 1,042,321 1,249,792 1,620,413 1,233,191 Total 42,013,485 52,357,301 68,328,555 88,591,115 67,420,940

Costs and expenses Operating cost 34,674,564 41,734,017 54,901,323 71,182,091 54,172,063 Selling and general administrative expense 4,283,747 5,831,426 6,492,211 8,417,450 6,405,974 Interest expense 1,033,732 1,103,498 1,410,486 1,828,760 1,391,750 Other expenses 1,427,535 2,006,281 1,980,201 2,567,422 1,953,898 Total 41,419,578 50,675,222 64,784,221 83,995,723 63,923,685 Income before taxes 593,907 1,682,079 3,544,334 4,595,392 3,497,254 Income taxes 175,221 331,179 611,511 792,852 603,388 Net income 418,686 1,350,990 2,932,823 3,802,540 2,893,866

88 COMBINED STATEMENT

of CHANGES IN CASH FLOWS

THE SAMSUNG GROUP

W O N W O N W O N US DOLLAR ECU millions millions millions thousands thousands at year-end 1993 1994 1995 1995 1995

Cash flow due to operations (258,015) 7,725,441 9,191,998 11,917,848 9,069,900 Net income per term 418,686 1,348,609 2,932,823 3,802,540 2,893,866 Increase in unpaid expenses 2,369,421 8,784,474 12,010,470 15,572,127 11,850,934 Deduction in non-received income (3,046,122) (4,407,642) (5,751,295) (7,456,819) (5,674,900) Cash flow due to investments (3,060,865) (8,356,319) (13,729,063) (17,800,362) (13,546,698) Cash receipts from investment activities 5,011,520 8,592,490 18,023,292 23,368,027 17,783,887 Reductions in current assets — 4,491,357 14,560,320 18,878,125 14,366,914 Reductions in investments and other assets 4,715,957 3,845,701 3,286,605 4,261,235 3,242,949 Reductions in fixed assets 174,689 252,673 81,000 105,020 79,924 Reductions in deferred assets 120,874 2,759 — — — Increase in cash from merger — — 95,367 123,648 94,100 Cash outlays from investment activities 8,072,385 16,948,809 31,752,355 41,168,389 31,330,585 Increases in current assets 101,977 5,731,607 16,728,284 21,688,990 16,506,080 Increases in investments and other assets 5,508,710 5,359,665 7,556,588 9,797,464 7,456,213 Increases in fixed assets 2,461,698 5,199,075 6,511,460 8,442,407 6,424,968 Increases in deferred assets — 658,462 956,023 1,239,528 943,324 Cash flow due to financing activities 2,792,860 3,478,223 5,868,552 7,608,848 5,790,599 Cash receipts from financing activities 6,926,410 35,101,790 34,065,214 44,167,117 33,612,722 Increases in current liabilities — 30,361,531 27,054,829 35,077,830 26,695,457 Increases in long-term liabilities 6,369,267 3,569,425 5,297,566 6,868,538 5,227,198 Increases in capital 557,143 1,170,828 1,705,614 2,211,407 1,682,958 Other — 6 7,205 9,342 7,109 Cash outlays from financing activities 4,133,550 31,623,567 28,196,662 36,558,269 27,822,123 Increases in deferred assets — 15,555 31,997 41,486 31,572 Reductions in current liabilities 2,051,566 31,031,510 27,655,626 35,856,791 27,288,273 Reductions in long-term liabilities 1,967,001 421,332 204,095 264,619 201,384 Dividend payments 114,983 129,369 139,695 181,121 137,839 Other — 25,801 165,249 214,253 163,054 Increases in cash (526,020) 847,345 1,331,487 1,726,334 1,313,801 Cash at the beginning of the term 2,550,191 2,024,171 2,918,657 3,784,173 2,879,888 Cash at the end of the term 2,024,171 2,871,516 4,250,144 5,510,507 4,193,689

Notes 1. The combined financial statements have been prepared on the basis of financial statements from Samsung Group companies. All of the figures have been examined by independent auditors in accordance with the generally accepted auditing standards practiced in the Republic of Korea. 2. Won/US$ exchange rate W771.3/1: For sales and profits–W771.3/1–was the yearly average. Other figures–W774.7/1–was the rate as of the end of December, 1995 3. ECU/US$ exchange rate–.761/1

89 Whereto ﬁnd us... Headquarters Facts Highlights

Samsung Founded: January 1, 1995 Samsung North America was established to oversee and manage activities North America Inc. Chairman and and subsidiaries in the United States, Canada and Mexico. 105 Challenger Road Chief Executive Officer: Bo-Soon Song Ridgefield Park, 1995 Sales: $8.3 billion In accordance with Samsung’s localization strategy, Samsung North America New Jersey 07660 Employees: 3,805 has committed vast resources to the region’s marketplace. Recent invest- USA Offices/Facilities: 45 ments exceed $1.5 billion, including a $1.3 billion semiconductor fabrication Tel: 1-201-229-7000 plant in Austin, Texas, and a $213 million integrated manufacturing complex in Fax: 1-201-229-7030 Tijuana, Mexico.

Samsung Founded: January 2, 1995 Samsung Europe, with offices in 21 countries, coordinates all European opera- Europe Headquarters Chairman and tions from its regional headquarters. Manufacturing sites are located in the Great West House Chief Executive Officer: Sung-Rai Choi U.K., Germany, Portugal, Spain, Hungary, Slovakia, and Switzerland. Great West Road 1995 Sales: $6.6 billion Brentford Employees: 6,450 The headquarters is also responsible for identifying strategic business oppor- Middlesex TW8 9DQ Offices/Facilities: 71 tunities across Europe, devising and implementing marketing strategies, pan- UK European corporate public relations and human resources development. Over Tel: 44-181-380-7000 the last two years, Samsung has invested $700 million in an integrated elec- Fax: 44-181-380-7020 tronics production complex in Wynyard, Teeside, U.K. and a European Research and Development Center in London, U.K.

Samsung Founded: January 1, 1995 Samsung Asia’s Pte Ltd. was established as part of Samsung’s effort to be Asia Headquarters Chairman and competitive in Southeast Asia and Australia. Its primary roles are to guide and 80 Robinson Road Chief Executive Officer: Jae-Hong Min help realize mid-term goals for Samsung subsidiaries in the region; to serve No. 21-01 1995 Sales: $6.2 billion as the support center for regional entities; and to implement the localization Singapore 068898 Employees: 13,240 strategy of the Samsung Group. Tel: 65-225-5868 Offices/Facilities: 53 Fax: 65-227-9662 Samsung Asia is expanding rapidly in terms of manpower, sales revenue and investment. To further maximize sales performance, Samsung Asia has imple- mented various training programs for managers to address issues of cross- cultural differences and to gain a more comprehensive understanding of the Samsung Group and its affiliates. Aggregated investment in the region prior to 1995 was $800 million.

Samsung Founded: January 1, 1995 Samsung China oversees and manages activities of subsidiaries in People’s China Headquarters Chairman and Republic of China, Hong Kong, Taiwan and Mongolia. Room 909 Chief Executive Officer: Yong Chung China World Trade 1995 Sales: $4.9 billion According to its investment plans, Samsung China will establish three inte- Center No. 1 Employees: 11,000 grated production complexes in the centers of Tianjin, Suzhou and Jian Guo Men Wai Offices/Facilities: 53 Guangzhou. Total investment in 1995 was $230 million, mainly in electronics. Avenue Investment in non-electronics includes textiles, heavy industries, and the Beijing, China 100004 establishment and development of an industrial park. By the year 2000, Tel: 86-10-6505-2208 Samsung China’s investments will exceed $3 billion; total revenue will reach Fax: 86-10-6505-1671 $12 billion, and the number of employees will reach 40,000.

Samsung Founded: December 1, 1993 Samsung Japan Corporation, with 33 offices throughout Japan, manages all Japan Corporation Chairman and group activities in the region. Its primary focus is to support strategic alliances 15F Hamacho Center Chief Executive Officer: Jong-Yong Yun with local Japanese automakers and serve as an important information source Building 1995 Sales: $4.5 billion for new business development in the Japanese market. Additionally, Samsung 2-31-1, Nihonbashi- Employees: 620 Japan Corporation plans to be listed on the Japanese stock market by 1998. Hamacho Chuo-ku Offices/Facilities: 33 Tokyo 103 Japan Samsung Japan Corporation is also focusing on R&D. It has established the Tel: 81-3-5641-9806 Semiconductor Design Center and will complete the Yokohama Research Fax: 81-3-5641-9854 Center in July 1997. ELECTRONICS Japan Headquarters Samsung Electronics Information Products Tel:81-3-5641-9830 Hanoi Office Business Team– Samsung Fax:81-3-5641-9821 Tel:84-4-826-1971 Dallas Office Electronics Co., Ltd. Fax:84-4-826-1973 Tel:1-214-484-6004 Samsung Electronics Fax:1-214-484-6007 Head Office Osaka Office Samsung Electronics Tel:82-2-727-7114 Tel:81-6-949-5130 Kuala Lumpur Office Samsung Austin Fax:82-2-727-7985 Fax:81-6-949-5133 Tel:60-3-263-2967 Semiconductor Inc. Fax:60-3-263-2970 Tel:1-512-338-8495 China Headquarters Lux Co., Ltd. Fax:1-512-338-8451 Tel:86-10-505-1665 Tel:81-3-5462-0414 Samsung Electronics Fax:86-10-505-1663 Fax:81-3-5462-0404 Manila Office Information Products Tel:63-2-526-2411 Business Team– Samsung Electronics Southeast Asia Fax:63-2-526-0920 Houston Office China Regional HQ Headquarters Tel:1-713-970-0996 Tel:86-22-330-4993 Tel:65-420-8100 Samsung Electronics Fax:1-713-970-0998 Fax:86-22-330-5992 Fax:65-227-9662 New Delhi Office Tel:91-11-372-0340 Samsung Electronics Samsung Electronics Samsung Electronics Fax:91-11-375-5390 Washington DC Office Hong Kong Asia Service PTE Tel:1-202-887-5661 Tel:852-2862-6319 Tel:65-542-6356 North America Fax:1-202-331-7961 Fax:852-2866-1316 Fax:65-542-6775 Headquarters Tel:1-201-229-7015 Samsung Electronics Samsung Electronics Samsung Vina Fax:1-201-229-7000 Canada Taiwan Electronics (SAVINA) Tel:1-905-819-5046 Tel:886-2-757-7292 Tel:84-8-225599 Samsung Electronics Fax:1-905-542-0940 Fax:886-2-757-7311 Fax:84-8-222242 America Tel:1-201-229-4246 Samsung Electronics Huizhou Samsung Samsung Electronics Fax:1-201-229-4110 Mexico Electronics Display (M) SDN. Tel:52-5-686-0800 Tel:86-752-332-1410 BHD. Samsung Fax:52-5-686-5094 Fax:86-752-332-1397 Tel:60-6-678-1266 Semiconductor Fax:60-6-678-7389 Tel:1-408-954-6988 Samsung Mexicana Suzhou Samsung Fax:1-408-954-7870 S.A. Electronics Samsung Electronics Tel:619-671-6136 Tel:86-512-532-3349 Australia PTY Samsung Fax:619-671-6794 Fax:86-512-532-8864 Tel:61-2-898-5720 Telecommunication Fax:61-2-684-4084 America Latin America Shandong Samsung Tel:1-954-426-4100 Headquarters Telecommunications Samsung Electronics Fax:1-954-426-5599 Tel:1-305-594-7389 Tel:86-896-562-1568 (M) SDN. BHD. Fax:1-305-471-9666 Fax:86-896-562-6767 Tel:60-3-376-1052 Samsung Information Fax:60-3-376-3461 Systems America Samsung Electronics Tianjin Samsung Tel:1-408-232-3741 da Amazonia Ltd. Electronics Samsung Asia PTE Fax:1-408-434-5447 Tel:55-11-523-5739 Tel:86-22-532-3707 Tel:65-420-8259 Fax:55-11-523-3995 Fax:86-22-532-3714 Fax:65-227-2792 Control Automation Inc. Tel:1-407-676-3222 Samsung Electronics Tianjin Tongguang Samsung Metrodata Fax:1-407-723-4388 Panama Samsung Electronics Distribusi (Zona Libre) S.A. Tel:86-22-628-4690 Tel:62-21-526-0755 Samsung Electronics Tel:507-269-6819 Fax:86-22-628-4680 Fax:62-21-526-0752 NY Office–US SBT Fax:507-269-8753 SAMSUNG Tel:1-201-229-4152 ELECTRONICS’ TOTAL Samsung Electronics P.T. Samsung Fax:1-201-229-4177 Samsung Electronics Beijing Office Metrodata Electronics Buenos Aires Office ASSISTANCE SERVICE Tel:86-10-505-4102 Tel:62-21-893-4786 Samsung Electronics Tel:54-1-312-9438 PROGRAM IN CHILE Fax:54-1-312-5199 Fax:86-10-505-2543 Fax:62-21-893-4273 Louisville Office PROVIDES EXCELLENT Tel:1-502-425-4342 Samsung Electronics Samsung Electronics Fax:1-502-425-4814 Samsung Electronics AFTER-SALES SERVICE Chengdu Office Seremban Complex Bogota Office TO CUSTOMERS, Tel:86-28-661-8888 Tel:60-6-678-8001 Samsung Electronics Tel:571-312-1854 Fax:86-28-674-8837 Fax:60-6-678-8002 LA Office–US SBT Fax:571-312-1865 FROM GIVING ADVICE Tel:1-310-537-7000 ON OPERATING EQUIP- Samsung Electronics P.T. Samsung Fax:1-310-537-1300 Samsung Electronics MENT TO REPAIRING Guangzhou Office Maspion Indonesia Miami Office Tel:86-20-331-3651 Tel:62-31-896-3971 Samsung Electronics Tel:1-305-477-1885 OR SERVICING Fax:86-20-331-3650 Fax:62-31-896-3566 Dallas Office–US SBT Fax:1-305-471-9666 APPLIANCES WITHIN Tel:1-214-484-6004 8 HOURS OF A Samsung Electronics Thai-Samsung Fax:1-214-484-6007 Samsung Electronics Shanghai Office Electronics Office Santiago Office COMPLAINT BEING Tel:86-21-6270-4168 Tel:66-2-681-0500 Information Products Tel:56-2-233-6963 RECEIVED. REPAIR VANS Fax:86-21-6270-0663 Fax:66-2-681-0495 Business Team– Fax:56-2-233-6973 Santa Clara Office ARE EQUIPPED WITH Samsung Electronics Samsung India Tel:1-408-434-5436 Samsung Chile Holding RADIOS AND BASIC Fax:1-408-943-0462 Ltda. (ENTEL) Shenyang Office Electronics Limited INSTRUMENTS SO Tel:86-24-279-1336 Tel:91-11-643-3096 Tel:56-2-206-6237 Fax:86-24-279-1330 Fax:91-11-643-9782 Information Products Fax:56-2-206-5943 TECHNICAL ASSISTANTS Business Team– CAN MAKE REPAIRS Samsung Electronics Samsung Electronics NY Office Middle East ON-SITE, OR IF THE Taipei Branch India Software Tel:1-201-229-4252 Headquarters Tel:886-2-757-7040 Operations Fax:1-201-229-4177 Tel:971-4-22-2966 PROBLEM IS MORE SERI- Fax:971-4-28-2802 Fax:886-2-757-7286 Tel:91-80-555-0555 OUS, TAKE THE APPLI- Fax:91-80-555-0557 ANCE TO A CENTRAL REPAIR SHOP. AT A STRATEGY MEETING HELD IN BEIJING IN APRIL 1995, CHAIRMAN LEE AND PRESIDENT JIANG ZEMIN DISCUSSED SAMSUNG’S INVESTMENT PLAN IN CHINA, CENTERING AROUND ELECTRONICS AND TELECOMMUNICATIONS SYSTEMS. ALSO ON THE AGENDA WAS SAMSUNG’S COMMITMENT TO DEVELOPING PRODUCTION AND MARKETING STRATEGIES FOR THE GOOD OF BOTH COUNTRIES.

Samsung Gulf Samsung Electronics Samsung Electronics JV Samsung Service Electronics, FZE Product Planning & Polska SP. Z.O.O. Tel:7-502-232-3188 Tel:971-4-83-7700 Design (Mktg Center) Tel:48-22-608-4405 Fax:7-502-224-5705 Fax:971-4-83-7710 Tel:44-181-380-7104 Fax:48-22-608-4401 Fax:44-181-380-7108 Samsung Electronics Samsung Electronics Samsung Electronica Moscow Office South Africa (PTY) Samsung Electronics Espanola S.A. (Telecom Systems Ltd. Research Center Tel:34-3-862-9619 Business) Tel:27-11-706-0327 Tel:44-181-391-8331 Fax:34-3-862-9648 Tel:7-502-213-9165 Fax:27-11-463-5214 Fax:44-181-391-8248 Fax:7-502-213-9175 Samsung Electronics Samsung Electronics Samsung Electronics Svenska A.B. Samsung Crosna Ticaret A.S. Euro Q.A. Lab Tel:46-8-590-799-27 Telecommunications Tel:902-32-376-7330 Tel:49-6171-708-141 Fax:46-8-590-777-65 Tel:7-502-213-9165 Fax:902-32-376-7336 Fax:49-6171-708-141 Fax:7-502-213-9175 Samsung Electronics Samsung Electronics IPO Division (UK) Ltd. Dagestan Cellular Amman Office Tel:44-181-391-0168 Tel:44-181-391-8213 Network Tel:962-6-846050 Fax:44-181-974-2784 Fax:44-181-974-2800 Tel:7-095-979-5433 Fax:962-6-846094 Fax:7-095-979-5433 Samsung Electronics Samsung Samsung Electronics Euro Service Center Semiconductor Europe Samsung Research Abidjan Office Tel:44-1952-207-126 GmbH Center Tel:225-21-47-10 Fax:44-1952-293-459 Tel:49-6196-582-761 Tel:7-502-213-9192 Fax:225-21-47-11 Fax:49-6196-582-770 Fax:7-502-213-9195 Samsung Electronics Samsung Electronics (UK), Service & Texas Instruments Samsung Technology Cairo Office Distribution Samsung Electronica Rep. Office Tel:20-2-336-1247 Tel:44-1952-207-141 Portugal Tel:7-502-213-9177 Fax:20-2-336-1248 Fax:44-1952-292-033 Tel:351-2-944-9003 Fax:7-502-213-9183 Fax:351-2-944-1660 Samsung Electronics Samsung Calex SPOL. Samsung Electronics Casablanca Office S.R.O. Samsung Electronics Vladivostok Office Tel:212-2-20-50-09 Tel:42-814-502-1001 Brussels Office Tel:7-50491-63635 Fax:212-2-20-45-38 Fax:42-814-502-3003 Tel:32-2-649-0402 Fax:7-50985-12110 Fax:32-2-649-0481 Samsung Electronics Samsung Electronica Samsung Electronics Istanbul Office Comercial Iberica S.A. Samsung Electronics Almaty Office Tel:90-212-288-5638 Tel:34-3-261-6723 Bucharest Office Tel:7-3272-69-6058 Fax:90-212-288-5657 Fax:34-3-261-6750 Tel:40-1-223-4719 Fax:7-3272-62-0481 Fax:40-1-223-4721 Samsung Electronics Samsung Electronics Samsung Electronics Jeddah Office France S.A. Samsung Electronics St. Petersburg Office Tel:966-2-682-0001 Tel:33-1-4938-4819 Prague Office Tel:7-502-201-5029 Fax:966-2-691-5276 Fax:33-1-4863-7183 Tel:42-2-336-2749 Fax:7-502-201-5036 Fax:42-2-336-3438 Samsung Electronics Samsung Electronics Samsung Electronics Karachi Office GmbH Samsung Electronics Kiev Office Tel:92-21-453-8354 Tel:49-6196-582-555 Rotterdam Office Tel:380-44-229-3633 Fax:92-21-454-5215 Fax:49-6196-582-889 Tel:31-70-307-2919 Fax:380-44-230-2303 Fax:31-70-395-0176 Samsung Electronics Samsung Electronics Kuwait Office Hungarian Samsung Electronics Tel:965-245-6415 Tel:36-1-250-23-11 Vienna Office Fax:965-244-3057 Fax:36-1-168-94-53 Tel:43-1-211-4315 Fax:43-1-211-4324 Samsung Electronics Samsung Electronica Tehran Office Italia S.P.A. Samsung Electronics Tel:98-21-871-3441 Tel:39-2-92189-231 Suomi Oy Fax:98-21-871-3276 Fax:39-2-92106-673 Sinimaentie 10A Tel:358-0-525-9520 Samsung Europe PLC Samsung Electronics Fax:358-0-525-91952 Headquarters Manufacturing (UK) Ltd. Tel:44-181-380-7052 Tel:44-1740-665091 CIS Headquarters Fax:44-181-380-7002 Fax:44-1740-661022 Tel:7-502-213-9202 Fax:7-502-213-9205 Semiconductor Samsung Electronics Division (SEPLC) Tel:31-70-307-2910 Samsung Electronics Tel:44-181-380-7162 Fax:31-70-319-4642 Moscow Office Fax:44-181-380-7220 Tel:7-502-213-9153 Samsung Electronics Fax:7-502-213-9162 Portuguesa S.A. Tel:351-1-414-8105 Fax:351-1-414-8128

93 SKYCAR, A FUTURISTIC MODE OF TRANSPORTATION THAT WILL BE DEVELOPED Samsung Aerospace Samsung London Office Industries Co., Ltd. Watch Co., Ltd. Tel:44-171-786-7851/4 BY SAMSUNG AEROSPACE INDUSTRIES AND MULLER INTERNATIONAL OF THE Fax:44-171-786-7866 U.S., INCORPORATES THE FUNCTIONS OF AN AIRPLANE AND AUTOMOBILE. IT IS Samsung Hong Kong Office A FOUR-PASSENGER AIRCRAFT THAT TAKES OFF AND LANDS VERTICALLY LIKE Opto-Electronics Tel:852-862-6976/8 Jakarta Office America, Inc. Fax:852-529-4009 Tel:62-21-571-3516 A HELICOPTER BUT CONSUMES ONLY ONE FOURTH OF THE FUEL AND TRAVELS Tel:1-201-902-0347 Fax:62-21-571-3517 TWICE AS FAST AS HELICOPTERS OF COMPARABLE SIZE. Fax:1-201-902-9342 Swiss Office Tel:41-66-5679-67 Beijing Office Samsung Fax:41-66-5681-75 Tel:86-10-6505-1271 Opto-Electronics Fax:86-10-6505-1276 Mexicana (Tijuana) CHEMICALS Tel:52-66-24-1101/2 New York Office Fax:52-66-24-1103 Samsung General Tel:1-201-229-6011/3 Chemicals Co., Ltd. Fax:1-201-229-6015 Tokyo Office Tel:81-3-5641-9721/3 Tokyo Office Tokyo Office Fax:81-3-5641-9720 Tel:81-3-5641-9591 Tel:81-3-5641-9556 Samsung Display Hong Kong Office Singapore Office Fax:81-3-5641-9594 Fax:81-3-5641-9557 Devices Co., Ltd. Tel:852-2862-6331/2 Tel:65-323-5830 Los Angeles Office Fax:852-2528-5920/ Fax:65-323-5831 Tel:1-310-537-7000 Hong Kong Office Ho Chi Minh City Office Samtron Displays Inc. 2598-1113 Fax:1-310-537-1566 Tel:82-2-826-6451 Tel:84-8-211978 Tel:310-537-7000 Samsung Data Fax:82-2-826-6459 Fax:84-8-211996 Fax:310-537-1033 Chicago Office Systems Co., Ltd. York Office Tel:1-708-916-2361/2 Tel:1-717-852-8247 Samsung Fax:1-717-852-8529 Samsung Fine Tokyo Office Fax:1-708-916-2370 Tokyo S/W Chemicals Co., Ltd. Card Co., Ltd. Tel:81-3-5641-9875 Development Center Hartford Office Fax:81-3-5641-9876 Beijing Office Tel:81-3-5641-9824 Tokyo Office Tokyo Office Tel:86-10-505-0235/9 Fax:81-3-5641-9881 Tel:1-203-565-0776 Tel:81-3-5641-9700 Fax:1-203-557-1338 Tel:81-3-5641-9893/4 Hong Kong Office Fax:86-10-505-0240 Fax:81-3-5641-9897 Fax:81-3-5641-9703 Tel:852-2862-6053 MACHINERY Fax:852-2866-2548 Shenzhen Office Fort Worth Office New York Office Tel:86-755-220-2427/ Samsung Heavy Tel:1-817-777-5886/ FINANCE Tel:1-201-807-6771 4273 Samsung Electronic 5243 Industries Co., Ltd. Fax:1-201-229-5014 Devices Malaysia SDN., Fax:86-755-223-7631 Fax:1-203-557-1338 Samsung Life BHD. Insurance Co., Ltd. Samsung Tokyo Office Frankfurt Office Tel:606-776-1070 Bangkok Office Tel:81-3-5641-9561/8 Securities Co., Ltd. Fax:606-778-1198 Tel:66-2-264-0542/7 Tel:49-6196-42989 Samsung Realty Fax:81-3-5641-9560 Fax:49-6196-46026 Fax:66-2-264-0548 of America Inc. London Office Samsung Elektronische Tel:1-201-229-6016 New York Office Moscow Office Tel:44-171-786-7867/8 Bauelemente GmbH Taipei Office Tel:1-201-229-6026 Fax:1-201-229-6024 Fax:44-171-786-7899 Tel:49-30-6952-3908 Tel:886-2-757-9488 Tel:7-095-485-4222 Fax:1-201-229-6029 Fax:7-095-576-4177 Fax:49-30-6952-4930 Fax:886-2-757-9489 Samsung Life New York Office Samsung Construction Investment (Jersey) Tel:1-201-229-5015 Samsung Display Turkey Office Rolleifototechnic Ltd. Equipment Co. GmbH & Co., KG. Fax:1-201-229-5016 Mexicana Tel:90-1-273-1053 Tel:1-847-582-1000 Tel:44-181-232-3330/5 Tel:52-66-27-6299 Fax:90-1-275-0602 Tel:49-531-6800-370 Fax:44-181-758-9686 Fax:1-847-806-9154/5 Fax:49-531-6800-243 Tokyo Office Fax:1-619-661-0503 Tel:81-3-5641-9919 São Paulo Office Samsung Life Los Angeles Office Union Optical Co., Ltd. Fax:81-3-5641-9918 Beijing Office Tel:55-11-247-5643 Tel:1-310-802-7003 Investment (UK) Ltd. Tel:86-1-505-0236 Fax:55-11-523-6884 Tel:81-3-3966-4274 Tel:44-181-232-3330/5 Fax:1-310-802-0796 Fax:81-3-3969-0825 Hong Kong Office Fax:86-1-505-0240 Fax:44-181-758-9686 Tel:852-2862-6420/1 Kuala Lumpur Office Frankfurt Office Fax:852-2862-6423 Taipei Office Tel:60-3-264-9129 Beijing Office Tokyo Office Tel:49-6196-483636 Tel:86-10-6505-1271~5 Tel:8-862-757-6757 Fax:60-3-262-6518 Fax:49-6196-483638 Tel:81-3-5641-9581/4 Fax:8-862-757-6709 Fax:86-10-6505-1276 Fax:81-3-5641-9580 London Office Jakarta Office Samsung Electro- Tel:44-181-380-7206/8 Tianjin Samsung New York Office Tel:62-21-571-3222 Opto-Electronics Co. Mechanics Co., Ltd. Fax:44-181-380-7209 Fax:62-21-571-3224 Tel:1-201-229-6021/2 Tel:86-22-339-4276 Fax:1-201-229-6024 Fax:86-22-339-4978 Samsung Electro- Samsung Asia PTE, Ltd. London Office Mechanics Mexico Tel:65-420-8201~4 London Office Tel:44-181-862-9333 Samsung S.A. de C.V. Fax:65-225-6598 Fax:44-181-862-0006 Tel:44-181-232-3330/5 Tel:1-619-671-6400/ Opto-Electronics Fax:44-181-758-9686 Mexicana (SOM) 20/25 Samsung Electro- Samsung Construction Fax:1-619-671-6408/9 Mechanics America, Inc. Tel:1-619-661-1591~3 Singapore Office Equipment Europe B.V. Fax:1-619-661-1590 Tel:1-408-954-7411 Tel:31-36-536-7770 Tel:65-420-8410 Samsung Portugal Fax:1-408-954-7429 Fax:31-36-536-0970 Fax:65-223-1983 Produtos Electro- Samsung Opto-Electronics Mechanics S.A. Samsung Electro- SHI U.K. Ltd. Samsung Fire & Marine Tel:351-1-924-1055 Mechanics GmbH America, Inc. Tel:44-1423-868-019 (Miami Office) Insurance Co., Ltd. Fax:351-1-924-1858 Tel:49-6196-58-2714 Fax:44-1423-866-203 Fax:49-6196-75-8646 Tel:1-305-718-9377 Fax:1-305-718-9388 Samsung Insurance Samsung Electro- Beijing Office Company Of Europe Mechanics (Thailand) Samsung Tel:86-10-6505-1271/ Limited Co., Ltd. Corning Co., Ltd. 0265 Tel:44-171-786-7851/4 Tel:66-38-570-191/6 Fax:86-10-6505-1276 Fax:44-171-786-7866 Fax:66-38-570-258 Samsung Corning Malaysia SDN., BHD. Oslo Office New York Branch Dongguan Samsung Tel:606-677-9700 Tel:47-22-83-3777 Tel:1-201-229-6011/3 Electro-Mechanics Co., Fax:606-677-7304 Fax:47-22-83-3778 Fax:1-201-229-6015 Ltd. Tel:86-769-330-5000 Samsung Corning Fax:86-769-330-5001 SHI Australia Deutschland GmbH PTY., Ltd. Tel:49-35600-34-417 Tel:61-2-9957-2411 Tianjin Samsung Fax:49-35600-34-302 Fax:61-2-9957-5231 Electro-Mechanics Co., Ltd. Tianjin Samsung Greece Office Tel:86-22-830-1307/9 Corning Co., Ltd. Fax:86-22-830-7436 Tel:30-1-422-2495/7 Tel:86-22-632-1943 Fax:30-1-422-2491 Fax:86-22-633-0557 Tokyo Office Singapore Branch Tel:81-3-5641-9870 San Diego Office Fax:81-3-5641-9871 Tel:65-420-8362 Tel:1-619-687-0260 Fax:65-221-8289 Fax:1-619-687-0259 Osaka Office SHI (Thailand) Co., Ltd. Tel:81-6-949-5132 Tokyo Office Fax:81-6-949-3047 Tel:66-38-636529/92 Tel:81-3-5641-9880 Fax:66-38-636461 Fax:81-3-5641-9881

Hong Kong Office 94 Tel:852-862-6099 Fax:852-529-1695 OTHER SAMSUNG Samsung Corp. Samsung Corp. Samsung Corp. Hanoi Office Bombay Office Brussels Office COMPANIES Tel:84-4-825-1868 Tel:91-22-283-0685/ Tel:32-2-245-2622 Fax:84-4-825-9277 1322 Fax:32-2-242-9305 Samsung Motors Inc. Fax:91-22-202-9189 Giang Vo Development Samsung Corp. Tokyo Office Co., Ltd. Samsung Corp. Vienna Office Tel:81-3-5641-9869 Tel:84-4-220415 Colombo Liaison Office Tel:43-1-212-7770 Fax:81-3-5641-9594 Fax:84-4-220695 Tel:94-1-43-7032~4 Fax:43-1-212-7774 Fax:94-1-43-7035 Detroit Office Samsung Corp. Samsung Corp. Tel:1-810-353-3033 Ho Chi Minh City Office Samsung Corp. Sofia Office Fax:1-818-353-1660 Tel:84-8-829-8942 Dhaka Liaison Office Tel:359-2-709124 Fax:84-8-323-1138 Tel:880-2-50-3085/0385 Fax:359-2-709107 Frankfurt Office Fax:880-2-83-2981 Tel:49-6196-582131/2 Samsung Corp. Samsung Corp. Fax:49-6196-582133 Beijing Office Samsung Corp. Budapest Office Tel:86-10-505-1271/5 Yangon Office Tel:36-1-138-2921 Samsung Design Fax:86-10-505-1276/ Tel:95-1-277896/288962 Fax:36-1-138-2930 America, Inc. 2646 Fax:95-1-277896 Tel:1-714-899-2644 Samsung Corp. Fax:1-714-899-2643 Samsung Corp. Samsung Corp. Moscow Office Shenzhen Office Karachi Liaison Office Tel:7-095-967-0491~8 Samsung Corporation Tel:86-755-220-2427, Tel:92-21-454-6318/9 Fax:7-095-967-0489/90 229-4832 Fax:92-21-454-5950 Samsung Fax:86-755-223-7631 Samsung Corp. Hong Kong Ltd. Erdsam Co., Ltd. Almaty Office Tel:852-2-862-6000 Samsung Corp. Tel:976-1-311-417 Tel:7-3272-69-2602/2207 Fax:852-2-862-6470 Shanghai Office Fax:976-1-311-422 Fax:7-3272-63-5822 Tel:86-21-6270-4168 Samsung (Australia) Fax:86-21-6275-0828/38 Samsung Corp. Samsung Corp. PTY., Ltd. Jeddah Office Tashkent Office Tel:61-2-9957-5655 Samsung Corp. Tel:966-2-644-3843/ Tel:7-3712-44-0922 Fax:61-2-9929-6208 Dalian Office 643-2490 Tel:7-3712-89-1458 Tel:86-411-263-8238 Fax:966-2-643-1813 Samsung Development (Ext. 1101) Khasco Co., Ltd. (Australia) PTY., Ltd. Fax:86-411-280-6924 Samsung Corp. Tel:7-4212-39-9560/66 Tel:61-2-9964-9488 Riyadh Office Fax:7-4212-33-8474 Fax:61-2-9964-9540 Samsung Corp. Tel:966-1-479-2378/82 Qingdao Office Fax:966-1-479-2281 Sofco Co., Ltd. Samsung Tel:86-532-287-2981~3 Tel:7-42366-4-0544 Asia PTE., Ltd. Fax:86-532-287-2980 Samsung Corp. Fax:7-42366-4-0429 Tel:65-533-3143 Damman Office Fax:65-534-3429 Samsung Corp. Tel:966-3-833-0447/ Samsung Corp. Guangzhou Office 1043 Kiev Office Samsung (Malaysia) Tel:86-20-331-1271/ Fax:966-3-834-9151 Tel:7-044-295-7154 SDN., BHD. 3646/3647 Fax:7-044-295-2888 Tel:60-3-261-5133/5170 Fax:86-20-331-1243 Samsung Corp. Fax:60-3-261-5907/0481 Kuwait Office Samsung Corp. Samsung Corp. Tel:965-241-6632/ Bucharest Office Samsung Corp. Tianjin Office 246-6851 Tel:40-1-223-2419 Taipei Branch Tel:86-22-332-9907 Fax:965-246-6850 Fax:40-1-223-2422 Tel:886-2-758-3155/58 Fax:86-22-332-6282 Fax:886-2-758-3172/ Samsung Corp. Samsung Corp. 3285 Samsung Corp. Tehran Office Praha Office Shantou Office Tel:98-21-886-2148/ Tel:42-02-336-3307/8 Samsung Japan Corp. Tel:86-754-816-7366 871-6589 Fax:42-02-336-3209 Tel:81-3-5641-9611/ Fax:86-754-846-9011/12 Fax:98-21-871-5866 9629 Samsung Corp. Fax:81-3-5641-9711 Samsung Corp. Samsung Corp. Madrid Office Haikou Office Amman Office Tel:34-1-319-3737, Samsung Japan Corp. Tel:86-898-676-9169 Tel:962-6-61-3565 308-5112 Osaka Branch Fax:86-898-676-9170 Fax:962-6-62-9591 Fax:34-1-308-0119 Tel:81-6-949-4803~10 Fax:81-6-949-3036 Samsung Corp. Dubai Samsung Samsung Corp. Chongqing Office Corporation Zagreb Office Samsung Japan Corp. Tel:86-811-384-5888 Tel:971-4-22-9634/ Tel:385-1-388-850 Nagoya Office Fax:86-811-384-6838 28-5798/27-2894 Fax:385-1-338-846 SAMSUNG FINANCIAL Tel:81-05-2-563-3371 Fax:971-4-22-9455 Fax:81-05-2-563-3373 Samsung Corp. Samsung Corp. PLAZA, AN INTEGRATED Xiamen Office Samsung Corp. Istanbul Office BUSINESS CENTER Samsung Japan Corp. Tel:86-592-205404/ Tel-Aviv Office Tel:90-212-273-1053, Fukuoka Office 2109384 Tel:972-3-639-6106 LOCATED IN THE KANG- 275-1074/5 Tel:81-92-475-7025/6 Fax:86-592-2123435 Fax:972-3-639-6107 Fax:90-212-275-0602 NAM DISTRICT OF Fax:81-92-475-7002 SOUTHERN SEOUL, Samsung Corp. Samsung Samsung Corp. Samsung Corp. Harbin Office Deutschland GmbH Geneva Office PROVIDES CUSTOMERS Manila Office Tel:86-451-365-3378 Tel:49-6196-90980 Tel:41-22-788-4414 ACCESS TO THE Tel:63-2-817-4744, (Ext. 6007) Fax:49-6196-909898 Fax:41-22-788-4415 815-2937 Fax:86-451-365-8930 GROUP’S FOUR DIFFER- Fax:63-2-815-2936 Samsung Corp. Samsung Corp. ENT FINANCIAL FIRMS. Samsung Corp. Warsaw Office Cairo Office THE PLAZA ALSO Star World Corp., Ltd. New Delhi Office Tel:48-22-621-5961 Tel:20-2-303-5063/ Tel:63-2-843-9041 Tel:91-11-688-9147/9817 Fax:48-22-3912-0304 6970 INTENDS TO BE A VITAL Fax:63-2-819-5123 Fax:91-11-687-2533 Fax:20-2-303-5644 PART OF THE LOCAL Samsung COMMUNITY AND MAKES Samsung Corp. Samsung Corp. United Kingdom Ltd. Samsung Corp. Jakarta Office Mumbai Office Tel:44-181-862-9311/12 Port Said Office EXHIBITION, RECREATION Tel:62-21-571-3201 Tel:91-22-283-0685/1322 Fax:44-181-569-7165 Tel:20-66-338301 AND MEETING SPACE Fax:62-21-571-3243/4 Fax:91-22-202-9189 Fax:20-66-225504 Samsung AVAILABLE TO THE GEN- Samsung Corp. France S.A.R.L. Samsung Corp. ERAL PUBLIC. Bangkok Office Tel:33-1-4279-2200 Tripoli Office Tel:66-2-264-0527 Fax:33-1-4538-6858 Tel:218-21-74971 Fax:66-2-264-0530/0537 Fax:218-21-70759 Samsung Italia S.R.L. Tel:39-2-2622-2992 Fax:39-2-2622-3125 Samsung (Nigeria) Samsung Corp. Osaka Branch SAMSUNG GROUP’S GLOBAL ASSISTANCE PROGRAM COORDINATES THE EFFORTS Co., Ltd Bogota Office Tel:816-949-4986 Tel:234-1-261-1060/1 Tel:57-1-618-4528/ Fax:816-949-3035 OF A NETWORK OF VOLUNTEERS IN EACH SAMSUNG AFFILIATE TO PROVIDE Fax:234-1-261-5529 4608/4520 SUPPLIES, RECOVERY ASSISTANCE AND MEDICAL RELIEF IN THE EVENT OF SUCH Fax:57-1-618-4635 Taipei Branch DISASTERS AS THE KOBE, JAPAN EARTHQUAKE AND THE SAMPOONG DEPART- Samsung SA (PTY) Ltd. Tel:886-2-731-7882 Tel:2711-884-8746 Samsung Corp. Fax:886-2-731-7865 MENT STORE COLLAPSE IN SEOUL. Fax:2711-884-6860 Lima Office Tel:51-1-440-5643 Hong Kong Branch Samsung Corp. Fax:51-1-440-4470 Tel:8522-862-6455 Accra Office Fax:8522-862-6469 Tel:21-775360 (Rm. 228) Samsung Corp. Fax:21-775360 Santiago Office Jakarta Branch Tel:56-2-234-1616 Tel:62-21-571-3674 Samsung America Inc. Fax:56-2-234-4744 Fax:62-21-571-3680 Tel:1-201-229-5000 Fax:1-201-229-5080 Samsung do Brazil Singapore Branch S/C LTDA Tel:65-420-8397 Samsung America Inc. Tel:55-11-287-5033/ Fax:65-538-3779 Los Angeles Office 5918 Cheil Industries Inc. New York Office Cheil Tel:1-310-802-2211 Fax:55-11-283-1846 Hanoi Branch Tel:1-212-399-1300 Communications Inc. Fax:1-310-802-3011 Tel:844-229-983/5 Moda prima Italiana Fax:1-212-247-3737 Samsung Corp. Fax:844-229-996 S.R.L. Cheil Communications Samsung America Inc. Buenos Aires Office Tel:39-2-5740-3400/ Joong-Ang America, Inc. Tel:54-1-814-5233 Houston Office Shanghai Branch 3500 Development Co., Ltd. Tel:1-201-229-6050/1 Tel:1-713-953-9700 Fax:54-1-814-1596 Tel:86-216-275-0209 Fax:39-2-5740-3601 Fax:1-201-229-6058 Fax:1-713-953-9911 Fax:86-216-275-2979 Samsung Engineering & Tokyo Office Moda prima America Tel:81-3-5641-9586 Los Angeles Office Samsung America Inc. Construction (M) SDN., Samsung Inc. Tel:1-213-368-4211 BHD. Fax:81-3-5641-9997 Seattle Office Engineering Co., Ltd. Tel:1-212-399-1300 Fax:1-213-368-4220 Tel:1-206-646-6336 Tel:1-603-262-4735 Fax:1-212-247-3737 Fax:1-206-646-9538 Fax:1-603-262-4761 Hotel Shilla Co., Ltd. Samsung Engineering Miami Office Associated Wool Thailand Co., Ltd. New York Office Tel:1-305-599-9367 Samsung America Inc. Samsung Development Exporters PTY., Ltd. Fax:1-305-594-4675 (Thailand) Co., Ltd. Tel:66-2-265-0524/5 Tel:1-212-752-8625 Santa Clara Office Fax:66-2-264-0526 Tel:61-2-233-8135/6 Tel:1-408-970-8844 Tel:66-2-264-0542/7 Fax:61-2-235-3336 Fax:1-212-752-4738 Fax:66-2-264-0548 Tokyo Office Fax:1-408-970-8886, Tel:81-3-5641-9573/4 748-8735 Tokyo Office Tokyo Office Tel:81-3-5641-9597/8 China-Korea Tianjin Fax:81-3-5641-9575 Samsung Samsung Wool Textile Tel:81-3-3586-7571 Development Inc. Fax:81-3-5641-9590 Fax:81-3-3586-7360 Canada Trade Group Co., Ltd. Beijing Office Inc. Tel:1-310-407-1862 Tel:86-22-851-4771/8 Fax:1-310-407-1864 Jakarta Office GSA Germany Tel:8610-6505-2206 Tel:1-514-866-4626 Fax:86-22-851-4779 Fax:8610-6505-1671 Fax:1-514-866-0913 Tel:62-21-571-3219 Tel:49-89-719-3811 Fax:62-21-571-3221 London Branch Tainjin Samsung Fax:49-89-719-2382 Tel:44-181-232-3321 Hong Kong Office Samsung de Mexico Fashion Co., Ltd. Tel:852-2862-6410~2 S.A. de C.V. Fax:44-181-862-0077 Beijing Office GSA London Tel:86-10-6505-2097 Tel:86-22-763-3071/8 Fax:852-2862-6414 Tel:52-5-280-3818/3920 Fax:86-22-763-3079 Tel:44-181-742-8899 Fax:52-5-280-3811/33 Moscow Branch Fax:86-10-6505-1276 Fax:44-181-742-2222 Tel:7-095-916-0325 Singapore Office Hong Kong Office Tel:65-420-8152 Samsung Corp. Fax:7-095-916-0390 Kuala Lumpur Office PR Representative in Tel:60-66-779-897 Tel:8522-862-6989 Fax:65-222-6681 Panama Office Fax:8522-528-6220 Hong Kong Tel:507-269-3533 Tripoli Branch Fax:60-66-777-217 Tel:852-2810-0532 London Office Fax:507-269-3067 Tel:218-21-90-1023 Shanghai Office Fax:852-2525-7972 Fax:218-21-90-1022 Milan Office Tel:44-181-391-4550 Tel:39-2-2247-7880 Tel:86-21-62758185/7 Fax:44-181-974-2540 Fax:86-21-62756882 The Joong-Ang Ilbo Tokyo Branch Fax:39-2-2622-4723 Frankfurt Office Tel:81-3-5641-9587 Tokyo Office American Fax:81-3-5641-9590 Headquarters Tel:49-6196-75133 Tel:81-3-5641-9576/8 Fax:49-6196-74648 Fax:81-3-5641-9579 Tel:1-202-347-0121 Fax:1-202-628-2719 Vienna Office Design Studio (Tokyo) The Joong-Ang Ilbo Tel:43-1-214-5490/1 Tel:81-3-3409-8671/2 Fax:43-1-214-5492 Fax:81-3-3409-8691 Cal, Inc. Tel:1-213-368-2500 Fax:1-213-389-6196 Moscow Office Frankfurt Office Tel:7-502-213-9250/1 Tel:49-6196-43674/ Fax:7-502-213-9252 44847 The Joong-Ang Ilbo Fax:49-6196-482755 New York, Inc. Tel:1-718-361-7700 Barcelona Office Fax:1-718-361-8891 Tel:34-3-261-6786~8 Sydney Office Fax:34-3-261-6785 Tel:61-2-233-8135/6 Fax:61-2-235-3336 The Joong-Ang Ilbo Chicago, Inc. Dubai Office Tel:971-4-218891/ Los Angeles Office Tel:1-312-583-2770 Fax:1-312-583-9626 222966 Tel:1-310-926-5520 Fax:971-4-282802 Fax:1-310-926-9930 Japan Headquarters Tel:81-3-3503-0022 Fax:81-3-3503-0021

KOREA IS AMONG THE WORLD’S TOP FIVE AUTO PRODUCERS, WITH STRONG SALES GROWTH BOOSTING PRODUCTION EVEN FURTHER. SAMSUNG MOTORS PLANS TO TURN OUT 80,000 CARS ANNUALLY BEGINNING IN 1998.

96 All Samsung products Published by: Printed by: Photography by: Written Produced by: and services mentioned Office of the Executive Samsung Moonwha Eric Myer and edited by: Addison Design Company in this publication Staff of the Samsung group Printing Co. Scott Morgan Jim Dulicai New York are the property of in coordination with Seoul, Korea the Samsung Group. Cheil Communications Inc. ETN THE MEETING Challenge ASN NULREPORT ANNUAL SAMSUNG 1995

MEETING THE challenge

SAMSUNG ANNUAL REPORT http://www.samsung.com 1995