THE SPIRIT of COMPETITION Ú´`‚‚ ” 03.1.2 4:24 PM Ù ` 3

Home , Samsung Aerospace, Samsung Medical Center

ú´`‚‚ ” 03.1.2 4:24 PM ù ` 2

ANNUAL REPORT 1996 THE SPIRIT of COMPETITION ú´`‚‚ ” 03.1.2 4:24 PM ù ` 3

Contents

4 8 28 The Strategy The Arena The Challenge Chairman Kun-Hee Lee’s To succeed in the Through creative product message: “Samsung is global arena, companies development and marketing, still a relatively new player must understand the we are making Samsung in many parts of the world. needs of local markets one of the best known and And we must push far and customers. most respected brands beyond our established in the world. skills to become a leader in the global marketplace.”

44 68 74 The Team The Results The Rewards In-depth profiles on each Samsung is one of The rewards of our of Samsung’s six business the largest and fastest- activities are not ours subgroups and 35 global growing companies to keep; they must be companies. in the world. reinvested continuously in the people and the A complete listing of communities we serve. Samsung offices and locations around the world. Page 65 1-7 03.1.2 4:25 PM ù`1

The rules of the world are changing.

Bigger is not better. Only better is better.

Quality over quantity. Innovation over imitation. Passion over pride.

The goal is not to beat one’s opponent. But to win customers’ hearts. And to contribute to a better global society.

This is the true spirit of competition. This is the true spirit of Samsung. 1-7 03.1.16 4:6 PM 페이지2

Electronics Samsung Electronics Subgroup produces video and audio products, appliances, information systems, computers, semiconductors and entertainment products. Fully integrated, the Electronics Subgroup is capable of turning raw materials into highly sophisticated products. Samsung Electronics Company introduced the world’s ﬁrst 1G DRAM, the VisionPLUS TV, new CDMA communications systems, DVD players and other digital products. Samsung Display Devices is the world’s largest maker of color picture tubes. The company manufactured 44 million picture tubes in 1996, or 17% of the world’s production. Samsung SDS launched Unitel, a user-friendly on-line service which provides news, entertainment, education, home shopping and other electronic services. Sales: $26.8 billion (28.9%)

TOTAL ASSETS: $98.4 BILLION NET SALES: $92.7 BILLION NET INCOME: $164 MILLION EXPORT

Machinery Samsung Machinery is a vertically and horizontally integrated group of companies involved in the design and construction of power plants, waste-treatment facilities, infrastructure and materials handling systems. It is also a leader in “mechatronics”–the interface of mechanics and electronics. Samsung Machinery Subgroup sales increased nearly 13% to $6.1 billion. Samsung Heavy Industries received orders for a liquid-natural-gas (LNG) carrier and a 103,000DWT drillship, which will be the largest drillship ever built. Samsung Aerospace is the prime contractor for a project to develop commercial airliners in Korea. Sales: $6.1 billion (6.6%) 1-7 03.1.2 4:25 PM ù`3

3 Finance The Finance Subgroup includes life, property and casualty insurance as well as credit card and securities businesses. The subgroup aims to become a leading player in 21st century global markets and one of the world’s 100 largest financial institutions. After the year 2000, the companies plan to unite as a single holding company called Samsung Financial Services Co. Samsung Life Insurance became the first Korean company to enter the real estate market in China. Samsung Fire & Marine Insurance continues to introduce new customer services, such as its computerized, on-the-spot Auto Claims Adjustment System. Samsung Securities became one of Korea’s top 10 securities firms, and ranks number one in institutional investor accounts and corporate bond underwriting.

Sales: $22.9 billion (24.7%) Automotive Samsung’s Automotive Subgroup designs and manufactures distinctive, high-quality vehicles for individuals and commercial use. Its products range from a midsized sedan automobile, to be introduced in 1998, to heavy-duty cargo, tanker and dump trucks. Samsung Motors completed its new state-of-the-art manufacturing plant in Pusan, Korea three months ahead of schedule. The company will introduce its ﬁrst vehicle in early 1998. Samsung Commercial Vehicles is expanding its product line to include light and medium trucks to complement its successful heavy truck models.

Samsung Automotive Subgroup was formed in 1997. Samsung Commercial Vehicles was previously * part of Samsung Heavy Industries, and its 1996 sales are included in our Machinery Subgroup.

EXPORTS: $36.1 BILLION LOCATIONS: 68 COUNTRIES EMPLOYEES: 260,000

Other Samsung Companies Our Independent Affiliates Subgroup includes Korea’s highest-rated hotel, largest trading company and leading newspaper publisher, Chemicals state-of-the-art medical and research institutes, and cultural and welfare foundations. Samsung Chemicals’ operations are built around petrochemical production. From this established base of business, Samsung Corporation exported $14.2 billion worth of goods to subgroup affiliates are expanding into many new, highly 150 different countries, affirming its position as the largest general sophisticated products, including high-polymer composites, trading company in Korea. engineering plastics and specialty chemicals. Samsung Engineering completed construction of ethylene and ethylene Samsung General Chemicals is expanding into production oxide/ethylene glycol plants for China’s Jilin Chemical Co., of new base materials for electronics and automobile and received an order for a 700,000-ton/year ethylene plant from components, pharmaceuticals and agrochemicals. the Thai Petrochemical Industry. The Korean government recognized Samsung Cheil Industries opened the Golden Fashion Center in Kumi, Fine Chemicals’ efforts to expand Korea’s chemical industry Korea, integrating the company’s textile production capabilities into by awarding it the Export Tower Trophy and Bronze Tower a single, high-tech operation. Industrial Decoration. Sales: $34.9 billion (37.6%) Samsung-BP Chemicals completed a new vinyl acetate monomer plant. Sales: $2.0 billion (2.2%) 1-7 03.1.2 4:25 PM ù`4

The St r 1-7 03.1.2 4:25 PM ù`5

An Essay by 5 Kun-Hee Lee, Chairman of Samsung

rategy 1-7 03.1.2 4:25 PM ù`6

young child wins a schoolyard race and dreams of becoming a champion. She works hard and advances from local and regional contests to national competitions, challenging athletes who share the same dream. At each level, the competition gets tougher, requiring new skills and greater discipline. aUntil one day, after years of sacrifice, she lines up against the world’s best, and awaits the sound of the starter’s pistol to fulfill her destiny. The same can be said for Samsung. For many years, we have dominated the Korean market, winning the hearts and minds of consumers. In our home country, we have built a legend for never failing, a tradition of always being the best in every endeavor. But in the world arena, it is a different story. Although nearly 39% of our $92.7 billion of rev- enues in 1996 were generated outside Korea, we are still a relatively new player in many parts of the world. And we need to push far beyond our established skills to become a leader in the global marketplace. Recognizing this fact, we embarked on a rigorous “New Management” program in 1993 to transform Samsung into a true world-class company. New Management is not a simple fine- tuning of our past performance. It is a total change in the way we think, the way we work and the way we serve our customers. Through the efforts of Samsung employees worldwide, we are beginning to reap the rewards of New Management, many of which are illustrated throughout this annual report. But, like an athlete in training, we have also fought hard to overcome disappointments and failures. In 1996, for example, sharp declines in the semiconductor, petrochemical and other industries seriously weakened Korea’s economy and our business, decreasing our profitability. But, by leveraging the strengths of our organization, we have acted swiftly to address this challenge, and we are confident that a turnaround is in sight. These short-term difficulties have only strengthened our resolve. The world is changing and competition is intensifying as we approach the new millennium. While our goal of global leadership is clearly in reach, we must work harder and smarter to achieve it. I believe that our team and strategy are on track to succeed. Among the key points of our game plan:

Focus on quality. Putting quality ﬁrst isn’t a slogan. At Samsung, it is a core personal principle that drives each and every one of our employees. The future lies only in people and quality, not quantity. As businesses pay more attention to the quality of their products and services, they show greater respect for their customers. Those companies that do not recognize this are doomed to failure. Listen to the world. We are delivering more products and services to more places in the world than ever before. This is good, but not nearly good enough. We must continue to localize 1-7 03.1.2 4:25 PM ù`7

our global operations, listening to the needs of individual markets and consumers, and designing products to meet their needs. Create a distinct advantage. Creativity and innovation will be the intellectual capital of the 21st century. We must invest in technology, product quality and design to create a new generation of “World’s Best” products. We also must distinguish our company and its culture, making the Samsung name a symbol of quality and innovation throughout the world. Anticipate the future. In a world of continuous change, past performance can no longer pre- dict the future. We are restructuring our operations–shedding old practices and second-rate operations–to focus on “next generation” businesses with the greatest opportunities for growth. And we are changing our business style to anticipate the future needs of customers, so we can be first to market with inspiring new ideas and product concepts. Create an environment for growth. We are developing more creative and productive corporate culture by eliminating rules that stifle innovation and hamper efficiency. We are giving managers the autonomy they need to demonstrate their full leadership. And we are building structures to integrate the many talents and resources of our organization that are often separated by artificial barriers. Contribute to a better global society. We must be genuine and sincere in our desire to improve the quality of life for all mankind. This is the only way for Samsung to become a true world-class company and to be welcomed everywhere in the global community.

One cannot approach these goals with a clipboard mentality–merely checking off assignments from an arduous to-do list–and expect to join the world’s business elite. They must become a fundamental part of our nature, the same as the blood which courses through our veins. They must be pursued with passion and unwavering dedication. This “spirit of competition” often separates a champion from an also-ran–whether it is in business, sports or everyday life. To demonstrate our support for this spirit, Samsung has become the worldwide wireless communications equipment partner of the 1998 Winter Olympic Games in Nagano, Japan, and the 2000 Summer Olympic Games in Sydney, Australia. In addition to providing telecommunications technology for the Games, our partnership provides us with an invaluable opportunity to communicate Samsung’s message to people all over the world. Samsung is also an official partner of the 1998 Bangkok Asian Games in Thailand. I have long believed that sports embody many of the essential disciplines vital to social har- mony: cooperation, attention to duty, and sacrifice. By adopting these disciplines throughout our company, and blending the wisdom of our past with a bold vision for the future, we will create a new Samsung, a respected global leader. As we approach the starting line of a new century, our time to prepare is growing shorter. I am confident we will respond to the challenge. 8-27 03.1.2 4:26 PM ù`8

The A r 8-27 03.1.2 4:26 PM ù`9

As Samsung 9 expands worldwide, we must respond creatively to both global challenges and the needs of the local communities we serve.

rena 8-27 03.1.2 8:36 PM ù`10

from Seoul to...

Less than 60 years ago, the Samsung Group was a small Korean trading company, supplying rice and agricultural commodities to neighboring countries. Today, Samsung is composed of 35 businesses including electronics, chemicals, machinery, construction, textiles, entertainment, financial services, and insurance, with 423 offices and facilities in 68 countries. 8-27 03.1.2 4:26 PM ù`11

The term “global marketplace” is a misnomer. In fact, the world is composed of hundreds of local and regional markets, each with its own distinct demographics, infrastructure, culture, politics and customs. Anyone who has traveled outside his or her own borders under- stands this truism. There are many differences between a family or business in Paris, France and another in Paris, Texas. To “globalize” in this dynamic arena, companies must “localize” the way they do business. They must clearly understand the different needs of customers around the world, and respond with unique products and services to fulﬁll them. Companies also need to build strong ties to the communities they serve, advancing their local economies and enriching the lives of people who live there. As we expand our operations worldwide, Samsung takes these responsibilities very seriously. We do not seek to push our way into global markets. Instead, we are forging a leadership position by earning the respect and admiration of customers in individual markets around the world. Our growing success outside Korea validates this strategy. A good example: Samsung Electronics’ sales in the Commonwealth of Independent States (CIS) grew from $94 million in 1993 to $670 million in 1996. We project sales to exceed $1 billion in 1997, as we strengthen our relationships and presence in the CIS. Business leaders and academia have taken notice. Samsung Corning, which operates plants and research and development facilities in four countries, was selected as a case study by Harvard Business School for its successful partnership. Enriched by its diversity, Samsung Corning has been proﬁtable for 23 consecutive years by carefully managing differences in culture, language and economic structure throughout its operations. 8-27 03.1.2 4:26 PM ù`12

Closer to our customers. To meet the challenges of globalization, we reorganized Samsung into five regional divisions in 1995: China (headquartered in Beijing); Europe (London); Asia (Singapore); Japan (Tokyo); and the Americas (Ridgefield Park, New Jersey). The new regional management structure moves decision-making closer to our customers, so we can respond faster and more efficiently to market needs and opportunities. It also encourages greater collaboration and synergy among our operating companies. Each division operates independently, employing its own research and development, product planning, marketing, sales, advertising and other staffs. These regional teams have the autonomy and authority to design products and marketing strategies specific to their local markets. We’re also localizing our manufacturing operations in high- growth markets throughout the world. At the end of 1996, Samsung Electronics operated more than 30 plants worldwide; we plan to double that number by the year 2000. Although still in the early stages of development, the benefits of Samsung’s regional management structure can be demonstrated in a variety of ways: Research and development. Through technology exchanges with leading research institutes worldwide, Samsung Fine Chemicals is developing a broad range of new commercially viable products. Samsung has established a jointly ventured research center at Russia’s Zelinsky Institute and is expanding strategic alliances with global biotech venture companies. Product design. Samsung’s share of the global microwave oven market has increased significantly over the past two years. We are number one in market share in Europe; we are number two 8-27 03.1.2 4:26 PM ù`13

in the U.S. and climbing rapidly. Much of this gain can be attributed to our development of unique microwave oven designs for different consumer markets, based on their individual cooking styles and feature preferences. Samsung Motors won’t introduce its first automobile until 1998, but the company has already established a design studio in California to study the needs of different markets, and to design vehicles that reflect local lifestyles. To globalize its operations as quickly as possible, the company has also opened branch offices in Detroit, Tokyo and Frankfurt. Speed to market. By localizing our operations, we can reduce delivery times to both our consumer and business customers. In Spain, our VCR manufacturing plant now promises 24-hour priority delivery to its principal markets. This kind of responsiveness has helped Samsung become number one in market share in Spain for VCRs, fax machines and cordless telephones. Business synergies. Samsung Corporation, our global trading company, has been operating in Brazil for years. So when Samsung Electronics decided to expand into the region, it had a local resource for learning the market, its people and potential opportunities. Thanks in part to this collaboration, our electronics subsidiary in Brazil–the first major Korean electronics manufacturer to enter the country– achieved profitability shortly after opening its doors. Customer service. Regionalization has also spurred a creative revolution in customer service throughout Samsung. Among the many innovations: A free “traveling” after-sales service program is being established by Samsung Electronics in the CIS to support our rapid expansion throughout the region. 8-27 03.1.2 4:26 PM ù`14

A model for global development. Malaysia has one of the fastest growing economies in the world. Samsung ﬁrst entered the country in 1979, helping to build the country’s highways and roads. Today, we operate 10 companies in Malaysia–with activities ranging from manufacturing, marketing and sales to engineering and construction–employing 7,500 Malaysians. Samsung Group has invested approximately $900 million in Malaysia to date, which includes construction of our new integrated electronics complex in Seremban, our largest manufacturing facility outside Korea. (In 1996, we also opened large integrated electronics complexes in Mexico and China.) Built in phases over a period of more than ﬁve years, our Seremban plant is a model for Samsung’s global development worldwide. The facility has 7,000 employees, more than 98% of which are Malaysians, including most department heads. More than 82% of the raw materials and components used at the Seremban complex are locally sourced, and our goal is to increase local content to 87% in the near future. Samsung’s investments in Malaysia–including extensive training programs for our employees and managers–have contributed greatly to the country’s economic and technological advancement. We also plan to participate in the Malaysian government’s Vision 2020 project, the country’s long-term economic development plan. By partnering in Malaysia’s success, Samsung has built a distinctive reputation and formidable presence in the region. Sales in Malaysia totaled $1.4 billion in 1996 and are projected to reach $2.0 billion in 1997.

Beneﬁting society. Membership in the global community is a reciprocal relationship. In addition to contributing to the economies of the regions we serve, Samsung is committed to social leadership through our involvement with a wide variety of local arts, environmental, educational and other programs (see “The Rewards” on page 74). Through these contributions, we strive to become an integral part of each society in which we live and work. Together, we can grow as one. 8-27 03.1.2 4:26 PM ù`15

Americas

Samsung Americas Founded: 1995 (Expanded to Samsung Americas manages our activities in Canada, the 105 Challenger Road include Latin America in 1997) U.S. and Latin America. Comprising both the world’s richest Ridgefield Park, NJ 07660 Facilities: 96 market and many booming markets, Samsung has invested USA Employees: 7,400 heavily in the region, including a semiconductor fabrication Tel: 1-201-229-7000 1996 sales: US$5.5 billion plant in the U.S., a vertically integrated electronics production Fax: 1-201-229-7030 Chairman and complex in Mexico and a TV-Monitor-VCR plant in Brazil. Chief Executive Officer: Kwang-Ho Kim Europe Samsung Europe Founded: 1995 Samsung Europe coordinates our operations in 21 countries, Headquarters Facilities: 86 including manufacturing in the U.K., Portugal, Spain, Switzerland, Great West House Employees: 6,588 Germany, Hungary and Slovakia. In the U.K., for example, we Great West Road 1996 sales: US$6.9 billion have invested heavily in recent years in an integrated electronics Brentford Chairman and production complex, a heavy-equipment plant and a European Middlesex TW8 9DQ Chief Executive Officer: research and development facility. UK Cegill Shin Tel: 44-181-380-7000 Fax: 44-181-380-7080

Asia Samsung Asia Pte. Ltd. Founded: 1995 Samsung Asia, the newest of our regions, is rapidly increasing 80 Robinson Road Facilities: 67 its competitiveness, sales and investments. To grow further, No. 21-01 Employees: 15,282 faster in this diverse region from India to Australia, Samsung Asia Singapore 068898 1996 sales: US$7.4 billion is identifying strategic alliances as well as making its own huge Tel: 65-225-5868 Chairman and investments, including the US$850 million Seremban Integrated Fax: 65-227-9662 Chief Executive Ofﬁcer: Manufacturing Complex in Malaysia. Douk-Kee Ahn

China

Samsung China Founded: 1995 Samsung China oversees Samsung operations–mainly Headquarters Facilities: 98 electronics, but also home appliances, textiles and clothing– 15F, Tower 1, Bright China Employees: 17,830 in the People’s Republic of China, Mongolia and Taiwan. Chang An Building, 1996 sales: US$5.5 billion For the world’s largest market, we plan to more than double China 100005 Chairman and our work force to 40,000 and our annual revenue to Tel: 86-10-6510-1234 Chief Executive Ofﬁcer: $12 billion by the year 2000. Fax: 86-10-6510-1539 Pil-Gon Rhee

Japan

Samsung Japan Founded: 1975 Samsung Japan, with 28 ofﬁces, focuses on supporting our Corporation Facilities: 28 alliances with strategic partners. It also provides information for 15F, Hamacho Center Employees: 610 new business development in this key market and operates Building 1996 sales: US$4.1 billion two research facilities–our Semiconductor Design Center and 2-31-1, Nihonbashi- Chairman and our new Yokohama Research Center. Hamacho Chou-ku Chief Executive Ofﬁcer: Tokyo 103 Japan Sang-Boo Yoo Tel: 81-3-5641-9820 Fax: 81-3-5641-9821

Note: Activities in the Commonwealth of Independent States (23 facilities), Middle East and Africa (25 facilities) are conducted separately by each subsidiary. 8-27 03.1.2 4:27 PM ù`16

Country: Malaysia Population: 21.2 million Gross Domestic Product (GDP): $96.2 billion GDP per capita: $4,543 Inﬂation (1996): 4%

Family: Jamilah Haji Dahalan, 32, mother Nurul Asyiqin, 7, daughter Muhammad Akram, 9, son Nur Atiqah, 3, daughter Mohamad Razali Suliman, 36, father

Most important thing in life: Happy family life Wish for the future: College education for children What comes to mind when you think of Samsung? Quality Why did you choose Samsung? Quality Samsung product shown: SRG628L refrigerator 8-27 03.1.2 4:27 PM ù`17

17 8-27 03.1.2 4:27 PM ù`18

Country: Russia Population: 148 million Gross Domestic Product (GDP): $525.9 billion GDP per capita: $3,550 Inﬂation (1996): 52%

Family: Vadim Mikheev, 35, father Natalia Mikheeva, 35, mother Christine Mikheeva, 11, daughter Galina Nikolaeva, 65, grandmother Vladimir Mikheev, 10, son

Most important thing in life: Family Wish for the future: To have a villa outside of the country What comes to mind when you think of Samsung? Televisions and quality Why did you choose Samsung? Design Samsung products shown: CE245GR microwave oven ECX-1 camera 8-27 03.1.2 4:27 PM ù`19

19 8-27 03.1.2 4:27 PM ù`20

Country: Netherlands Population: 15.7 million Gross Domestic Product (GDP): $408.2 billion GDP per capita: $26,000 Inﬂation (1996): 2.1%

Family: Martje Visser, 55, mother Sale Visser, 59, father Bert-Jan Visser, 24, son

Most important thing in life: Healthy and happy life Wish for the future: Trip around the world What comes to mind when you think of Samsung? Excellent quality excavator Why did you choose Samsung? Versatility Samsung products shown: SE210LC-2 excavator CB-5073T television SV-45XK VCR Mycam K80 video camera recorder 8-27 03.1.2 4:28 PM ù`21

21 8-27 03.1.2 4:28 PM ù`22

Country: United States Population: 268.7 million Gross Domestic Product (GDP): $7.92 trillion GDP per capita: $29,600 Inﬂation (1996): 3%

Family: Holly, 4, dog Lucy Stewart, 33, mother William Stewart, 3 months, son David Stewart, 44, father

Most important thing in life: Family Wish for the future: Health, happiness and more children What comes to mind when you think of Samsung? The giant billboards on 6th avenue Why did you choose Samsung? Elegant and well priced products Samsung products shown: 17GLi SyncMaster monitor CDMA PCS handset 8-27 03.1.2 4:28 PM ù`23

23 8-27 03.1.2 4:28 PM ù`24

Country: Japan Population: 126.3 million Gross Domestic Product (GDP): $4.82 trillion GDP per capita: $38,120 Inﬂation (1996): 0.3%

Family: Hiromi Takimoto, 9, daughter Mitsuaki Takimoto, 12, son Shoichi Takimoto, 39, father Mieko Takimoto, 36, mother

Most important thing in life: Happy and healthy family life Wish for the future: Family’s health What comes to mind when you think of Samsung? Video Why did you choose Samsung? Good value Samsung product shown: SENS Pro 520 notebook PC 8-27 03.1.2 4:29 PM ù`25

25 8-27 03.1.2 4:29 PM ù`26

Country: South Korea Population: 45.6 million Gross Domestic Product (GDP): $543.9 billion GDP per capita: $11,910 Inﬂation (1996): 4.8%

Family: Hye-Seung Oh, 32, mother Hee-Yeun Kim, 1, Daughter Jong-On Kim, 66, grandfather Eun-Ju Kim, 64, grandmother Sang-Yoon Kim, 4, son Do-Hun Kim, 36, father

Most important thing in life: Family Wish for the future: Having an animal farm for the family What comes to mind when you think of Samsung? Credibility Why did you choose Samsung? After-the-sale service Samsung products shown: RE-445R microwave oven 700P SyncMaster monitor SP-RM927 wire and wireless telephone VisionPLUS television SV-D100 camcorder 8-27 03.1.2 4:29 PM ù`27

27 28-45 03.1.2 4:33 PM ù`28

The Ch a 28-45 03.1.2 4:33 PM ù`29

To succeed in a 29 new era of global competition, we must make Samsung one of the best known and most respected brands in the world.

allenge 28-45 03.1.2 4:33 PM ù`30 28-45 03.1.2 4:33 PM ù`31

31 Walking into the television department of a large electronics store can be a daunting experience.Tow- ering displays of TVs compete for attention,ﬂashing buy-me smiles in 28-45 03.1.2 4:33 PM ù`32

perfect synchronism. A jumble of high-tech features makes it difficult to differentiate products or compare performance. To relieve the confusion, many customers survey the shelves for the name of a “friend”–a brand name they know and trust from reputation and past experience. For decades, several Japanese companies have dominated this short list. But in recent years, a new name has been making friends faster than any other: Samsung. The affinity has been hard-earned. Recognizing the value of a strong brand, we have invested aggressively in developing innovative products and a unique brand identity to distinguish Samsung from scores of global competitors. This challenge is not limited to televisions and electronics; it is companywide. Wherever the Samsung name appears, it must represent world- class quality, performance and value. While our efforts to strengthen the Samsung brand are only a few years old, we can already measure the results. According to Interbrand Group, an international branding consultancy, Samsung ranked among the top 100 of the World’s Greatest Brands in 1996, our first year included in the prestigious survey. Some of our best progress has been in emerging markets. In China, Samsung achieved 66% brand awareness and a 72% positive-opinion rating in 1996, based on our own Global Brand Attitude Survey, up from 14% brand awareness and a 33% positive- opinion rating only two years ago. In the Commonwealth of Independent States (CIS)–where we scored 92% brand 28-45 03.1.2 4:33 PM ù`33

awareness in 1996–a leading public opinion poll named Samsung one of the top five “superfirms of the year.” Building a world-class brand. Few can argue with the power of a prominent brand. Successful brands drive consumer preferences, preserve margins and build customer loyalty, even in the face of tough competition. Brands provide peace of mind to consumers and create value for shareholders. Advertising alone cannot forge this bond. Companies must build world-class products to build a world-class brand. These products must enhance the lives of customers, and have a distinct advantage in the market. They must deliver consistent quality, reinforcing consumer confidence with every purchase. This challenging philosophy is the impetus behind Samsung’s “brand revolution.”Before we could develop a superior reputation in the TV market, we had to manufacture a superior product–the WorldBEST™ TV–which featured new standards of television design, picture quality, sound and value. In 1996, we built upon this leadership by introducing the VisionPLUS™ TV,which boasts a unique picture-tube technology that extends the viewing area of traditional television screens. This same kind of market-driven innovation drives the development of all our new products and services. Among the many standards we strive to achieve: 28-45 03.1.2 4:33 PM ù`34

Slim Zoom 145 The European Imaging and Sound Association (EISA) is a tough judge of quality. So, naturally, we were pleased when the prestigious organization chose the Samsung Slim Zoom 145 as its compact camera of the year for 1996-1997. In awarding the coveted prize, EISA said: “Samsung is coming of age as a maker of high-quality, user-friendly cameras.” It also praised the feature-packed Slim Zoom 145, saying the camera “puts many more expensive zoom compacts to shame.”

Lansmere 170 Cheil Industries’ Lansmere 170 fabric is winning high praise around the world. Forbes hailed it as “the world’s finest fabric ever for tailor-made suits.” Others simply refer to Lansmere as “the golden fleece.” A product of proprietary Samsung technologies, each strand of the luxurious wool fabric is just one-fifth the diameter of a single strand of human hair. Lansmere is made from extremely rare 1PP wool, the highest grade of the 975 grades of the Australian Wool Testing Authority. 28-45 03.1.2 4:33 PM ù`35

Premium Quality. “Quality first” is a core value of every product Samsung sells. That’s why we’ll rehearse production on our new automobile lines for more than a year before introducing vehicles to consumers in 1998. When the first production model officially rolls off the line, it will be manufactured to the highest quality standards in the world. 28-45 03.1.2 4:33 PM ù`36

Technological Innovation. Samsung is one of the world’s premier technology companies. By creatively applying our technological expertise,we can enhance the value of our existing products and develop new categories of breakthrough ideas. During 1996, we demonstrated this capacity in many ways, including the development of the world’s ﬁrst ultrathin, ultralight, high-resolution 21.3 inch TFT-LCD computer monitors,which take up a fraction of the desk space of conventional monitors. Customers across a broad span of industries depend on Samsung’s technological expertise. Samsung Heavy Industries is currently building a 103,000DWT drillship for one of its clients; it will be the largest ship of its kind in the world. 28-45 03.1.2 4:33 PM ù`37

SCH-1000 CDMA PCS A new wireless communications revolution has begun, and Samsung is at the forefront. It’s called Code Division Multiple Access–or CDMA for short. CDMA provides better voice quality, greater privacy and vastly improved system capacity, compared to traditional cellular telephone networks. New Personal Communications Systems (PCS)–like the SCH-1000 CDMA PCS shown here–also offer customers expanded services, including caller identiﬁcation and messaging.

VisionPLUS™ TV Are you seeing the whole picture when you watch television? The answer is probably not if you don’t have a Samsung VisionPLUS TV. Conventional televisions cut off broadcast images on both sides of the screen, narrowing the picture you see. By developing an innovative picture-tube technology, Samsung has restored this “lost inch” to provide a true video image, just as it was captured by the camera. A big hit in Korea, the VisionPLUS TV is now being introduced in markets around the world. 28-45 03.1.2 4:34 PM ù`38

CF4200 Multi-Functional Color Machine More for less. That’s what today’s small and home-ofﬁce businesses want. We created the Samsung CF4200 Multi-Functional Color Machine to meet the need. The CF4200 combines the functions of four important ofﬁce tools–a color inkjet printer, a plain-paper facsimile machine, a scanner and a convenience copier–in a single, streamlined product that occupies less space than most single-function desktop printers.

Samsung Card Samsung Card Company is constantly developing new services to deliver greater convenience, ﬂexibility and value to its customers. A good example: the Samsung Motors Card, which will provide attractive cash-back incentives to customers who use the card to buy new Samsung automobiles, which are scheduled to debut in 1998. The Samsung Motors Card also provides discounts of 3% – 8% on purchases at Samsung Card member stores. 28-45 03.1.2 4:34 PM ù`39

Added Value. World-class products don’t just meet consumer needs. They exceed them, and delight customers with beneﬁts not found in competitive products. Product design plays a crucial role in this process. To stand out in this arena, we created the Innovative Design lab of Samsung (IDS) in 1995. Through IDS and other resources, we are dramatically enhancing the performance, value and aesthetic quality of our products through added-value innovations and design. Samsung Card Company is also an added-value innovator. It was the ﬁrst credit card company to offer a prepaid buying card to consumers, and today is developing a number of new innovative credit card services through the use of built-in semiconductor chips. 28-45 03.1.2 4:34 PM ù`40

RE-447 Microwave Samsung Electronics has rapidly become one of the world’s leading producers of microwave ovens. One of the reasons for this success has been our sensitivity to global environmental concerns. Through our Green Management program, we design products like the RE-447 microwave oven to be more environmentally responsible by having fewer parts, a greater percentage of recyclable components, and reduced assembly and dismantling time.

The SEV-IV Samsung is committed to developing a safe, practical car that uses alternative energy. The SEV-IV–or Samsung Electric Vehicle– takes us one step closer to that goal. Unveiled in December 1996, the SEV-IV can travel up to 75 miles per hour for up to 100 miles on one six-hour charge from a regular 220-volt outlet. Forty of the vehicles will be used by Samsung Electronics in 1997 for after-sales service calls, providing invaluable on-the-road testing to advance future developments. 28-45 03.1.2 4:34 PM ù`41

Environmental Responsibility. Protecting the environment has become one of the most pressing issues facing the world. Through our extensive Green Management program, Samsung is committed to manufacturing products which are environmentally responsible throughout their life cycle–from inception to disposal. By doing so, we are not only strengthening our relationships with customers; we are contributing to a better global society. At our unique Environment R&D Center, Samsung Engineering is developing technology for advanced water puriﬁcation, industrial waste incineration and other important processes. The company has also established a joint environment research and development center with the Polytechnic Institute of New York. 28-45 03.1.2 4:34 PM ù`42

Future Orientation. To increase the value of our brand, we must develop products that anticipate the future needs of consumers and businesses. A good example: In 1996,we shattered an industry technology barrier by developing the world’s ﬁrst one-gigabit dynamic random access memory (DRAM) chip. While it will not be commercially available for several years, the 1G DRAM cements Samsung’s position as the industry’s innovator, and will become the heart of the next generation of digital electronic products. 28-45 03.1.2 4:34 PM ù`43

The ﬁrst Samsung Motors automobile When introduced in 1998, the ﬁrst Samsung Motors automobile will be more than just another car. It will be an entirely new concept in quality and customer satisfaction. Our goal is to build one of the leading automobile franchises in the world, and a model of design innovation for the transportation industry. While we are beginning modestly with the launch of a single midsized sedan, our plan is to develop a full line of products, including trucks and recreational vehicles, over the next decade.

The 64-bit Alpha chip Microprocessors drive a computer’s performance. In 1996, Samsung signed a licensing agreement with Digital Equipment Corporation to manufacture the highest performance microprocessor in the world: The 64-bit Alpha Chip. Alpha Chips perform two to three times faster than conventional PC microprocessors, greatly enhancing computer speed and efﬁciency. This is especially important for complex computer applications, such as videoconferencing and 3-D imaging. 28-45 03.1.2 4:34 PM ù`44

Creating a unique brand identity. The 21st century will be an era of culture and intellectual assets. To succeed in this new age, companies can no longer simply manufacture superior products; they must distinguish their unique philosophy, persona and corporate values through creative marketing and advertising. We recognize this need and are developing “powerbrand”campaigns that communicate Samsung’s heart and soul to consumers worldwide. In North America, our sleek and alluring “Simply Samsung” advertising program has signiﬁcantly increased brand awareness and appeal, and contributed a substantial increase in the sales of many of our electronics products during 1996. By combining the provocative images of these campaigns with equally bold and powerful products, we are creating a compelling brand identity upon which we can build for years to come. 28-45 03.1.2 4:34 PM ù`45

45 46-67 03.1.2 4:35 PM ù`46

TheT e 46-67 03.1.2 4:35 PM ù`47

Samsung’s Team 47 comprises more than 260,000 employees and 36 companies worldwide. Combined sales in 1996 were $92.7 billion

eam 46-67 03.1.2 4:36 PM ù`48

ELECTRONICS

Samsung Electronics Company introduced the world’s ﬁrst 1G DRAM, the VisionPLUS TV, new CDMA communications systems, DVD players and other digital products.

Samsung Display Devices is the world’s largest maker of color picture tubes. The company manufactured 44 million picture tubes in 1996, or 17% of the world’s production.

Samsung SDS launched Unitel, a user-friendly on-line service which provides news, entertainment, education, home shopping and other electronic services.

Employees: Samsung Electronics Co., Ltd. 106,150 Samsung Display Devices Co., Ltd Samsung Electro-Mechanics Co., Ltd. Sales: Samsung Corning Co., Ltd. $26.8 billion Samsung SDS Co., Ltd. Hewlett-Packard Korea Co., Ltd. Samsung-GE Medical Systems Co., Ltd. 46-67 03.1.2 4:36 PM ù`49

Samsung improved its competitiveness tube that combines the strong into China and Brazil. At the in this area. points of both color picture same time, SDD now operates Electronics The company employs more tubes and color display R&D centers in six nations to Co.,Ltd. than 12,000 researchers and tubes. It also developed the develop products that meet Samsung Electronics Co. invests at least 5% of total Maxtron picture tube for the local needs. manufactures a broad range sales revenue in research and VisionPLUS TV. The Maxtron The company’s corporate of electronics-related items, development. Research cen- tube measures one inch wider goal is to achieve annual sales including semiconductors, ters around the world are con- than conventional tubes, of $9.5 billion in 2000 and computers, telecommunica- stantly at work on innovative offering customers a larger $17.8 billion by 2005. By tions hardware and finished ideas, many of which have viewing area. today’s measures, this would consumer electronics prod- become “hit products.” SDD also produces color make Samsung Display ucts. The company’s corporate Samsung Electronics contin- display tubes (CDTs) ranging Devices one of the 100 largest mission is to enhance the qual- ues to expand worldwide in in size from 10 inches to 24 companies in the world. To ity of life for people through other ways as well. Large- inches, and is working on the achieve this goal, SDD plans new technology development. scale, integrated production development of CDTs that are to capture 25% of the world Samsung Electronics leads complexes are in operation in easier on users’ eyes and color picture tube market the world in dynamic random Wynyard, England; Tijuana, more environmentally friendly. and expand its business lines access memory (DRAM) tech- Mexico; Seremban, Malaysia Samsung has also introduced to include next-generation nology. It was the first com- and Tianjin, China. The compa- a mini-neck 15-inch CDT that displays and energy-related pany to develop a working ny also has a global marketing consumes less energy than products. prototype for the 256M DRAM. network which covers 56 loca- other models, boosting the Employees: 12,661 The company also pioneered tions in 45 countries. CDT market. 1996 Sales: $3.7 billion the 1-gigabit DRAM in 1996. Samsung Electronics’ glob- Samsung Display Devices Tel: (82) 2-727-3114 By leveraging such techno- alization strategy extends is Korea’s first company to Fax: (82) 2-727-3111 logical expertise, Samsung beyond production and sales receive ISO 9001 certification Major Products: color picture Electronics has increased its to include technology transfer for liquid crystal displays tubes, color display tubes, liq- world market share in large- and training, new jobs creation (LCDs). The company has uid crystal displays, vacuum scale system integration and local parts procurement. opened an LCD R&D center fluorescent displays, light- through the development of These actions make our over- that is developing new prod- emitting diodes, data input application-specific ICs, the seas operations more self- ucts by applying innovative devices (digitizers and touch Alpha chip, microcontrollers sufficient, and thus a greater technology to LCD component panels), color filters and power elements. In addi- contributor to the local com- development. tion, the company has become munities in which they work. As the use of telecommuni- Samsung a major player in the world As a socially responsible cations devices increases, the Electro- display industry by being the company, Samsung Electronics demand for multimedia func- first company to introduce a supports efforts to protect the tions continues to soar. In Mechanics 22-inch thin-film-transistor liq- environment. It also contrib- response, SDD is developing utes to art, culture and athletic LCDs for smart phones (key- Co.,Ltd. uid crystal display (TFT-LCD). Samsung Electro-Mechanics Samsung Electronics is also events around the world. phones), personal digital Employees: 84,000 assistants and car navigation (SEM) was established in applying innovative technolo- 1973 to produce key parts for gies to produce new TVs, 1996 Sales: $18.808 billion systems. Tel: (82) 2-727-7114 Samsung Display Devices TVs (tuners, deflection yokes, VCRs, refrigerators and DVD flyback transformers) and players. These products have Fax: (82) 2-727-7826 recently diversified into vacuum Major Products: information fluorescent display (VFD) pro- capacitors. In the 1980s, the been well received worldwide. company began producing By understanding customer systems, audio products, duction and is now producing hand-held phones, mobile three million VFDs a month. parts and components for needs, Samsung aims to VCRs, computers and com- develop consumer electronics telecommunications systems, By the year 2000, Samsung DVD players, VisionPLUS TVs, aims to be the world’s largest puter peripherals. In the products which earn “world’s 1990s, SEM has expanded best” distinction for function, home appliances, Internet TVs, maker of VFDs, which are semiconductors, Syncmaster used in VCRs, audio systems into new areas of high growth design and environmental potential, including multilayer friendliness. monitors and automobile instrument panels. printed circuit boards (MLBs), The company’s SENS note- chip devices, parts for mobile book PCs and Magic Station Samsung The use of mobile communications is expanding rapidly, communications and multimedia PCs provide out- Display optical/thin-film components. standing functions and relia- and consumers are looking for Devices hand-held terminals that are Today, the company boasts bility. Samsung is also in step the world’s largest market with the growing demand for ever smaller, lighter and con- Co.,Ltd. sume less power. To serve this share for deflection yokes multimedia products by devel- Samsung Display Devices (16%) and flyback transform- oping Internet TVs, digital TVs market, Samsung Display (SDD) develops new and cre- Devices is establishing and ers (14%), and is developing and DVD players. ative products for the multi- the world’s most advanced Samsung’s involvement in expanding facilities to produce media age. SDD is the world’s secondary batteries and other deflection yoke to date. telecommunications includes largest manufacturer of color Electronics products are the production of code division important components such as picture tubes, having produced digitizers and color filters. growing smaller and lighter to multiple access (CDMA) sys- more than 150 million units satisfy consumer demand. tems, asynchronous transfer The company is also diversi- since 1970. The company fying into plasma display Samsung Electro-Mechanics is mode (ATM) switching sys- manufactured 44 million color playing a leading role in this tems, personal communica- panels and lamps. picture tubes in 1996, repre- SDD’s first offshore plant transformation by producing tions service (PCS) handsets, senting 17% of the world’s 1.0mm x 0.5mm multilayer personal digital assistant was set up in Malaysia, production. followed by Germany and ceramic capacitors and chip (PDA) handsets and on-line SDD is equipped to manufac- resistors as well as parts for services. The company’s multi- Mexico. In 1996, Samsung ture products ranging in size Display Devices also moved mobile telecommunications media-related technology has from 6 inches to 32 inches. In terminals such as voltage- 1996, the company developed controlled oscillators and a 24-inch multimedia display 46-67 03.1.2 4:36 PM ù`50

temperature-compensated Samsung Samsung Corning is practic- crystal oscillators. The coming a Green Management sys- pany is also developing MR Corning Co., tem to ensure worker safety heads for hard disc drives and Ltd. and environmental protection is producing high-density, Samsung Corning was estab- at all work sites. These efforts large-capacity MLBs and spe- lished in 1973 as a joint ven- are essential to the company’s cial function MLBs such as the ture between the Samsung future competitiveness. ball grid array and tape carrier Group and Corning Inc. of the Samsung Corning is the package types. U.S. The company produces world’s first glass maker to In 1997, Samsung Electro- glass for TV picture tubes and receive ISO 14001 certifica- Mechanics is building an inte- PC monitors, indium-tin-oxide- tion. Korea’s Environment grated system that will facilitate coated glass for liquid crystal Ministry has designated the the production of a larger vari- displays and rotary transform- company’s plants at Suwon ety of products in small lots ers for VCR head drums. and Kumi as “environmentally and is moving into the produc- These vital products for elec- friendly” operations, while tion of automotive products. tronic components are sold Korea’s Ministry of Labor has The company is using its worldwide. Significantly, the rated the company “outstand- extensive expertise in elec- company manufactures glass ing” for worker safety and tronic control subsystems and for the new-concept Samsung welfare. molding to produce automotive Maxtron picture tube, which is Employees: 5,500 products. Mass production is one inch wider than conven- 1996 Sales: $730 million now under way for 48 different tional TVs. Samsung Corning Tel: (82) 2-3457-9638 items in 10 different cate- and Corning Inc. have jointly Fax: (82) 2-3457-9539 gories, including electronic developed a new fusion Major Products: glass for TV control modules, steering sys- process for making glass used picture tubes and PC moni- tem, suspension system, in thin-film-transistor liquid tors, ITO-coated glass, rotary brake system, electrical power crystal displays (TFT LCDs). transformers components, safety system The company continues to and air conditioning system. expand its operations through Samsung SDS Samsung Electro-Mechanics globalization and localization. Co.,Ltd. operates offshore plants in Samsung Corning operates Established in May 1985, Portugal, China (Tianjin and picture tube glass plants in Samsung SDS is Korea’s Dongguan), Thailand, Mexico Germany and Malaysia and a leading information services and the Philippines. It also has rotary transformer plant in company. The company helps 21 sales offices worldwide. China. These facilities are pro- clients improve their competi- The company’s top priority is viding top quality products to tiveness and create ideal serving its customers, so it local buyers. working environments for will continue to globalize its In 1997, Samsung Corning, employees. Samsung SDS’s operations to be as close to Corning Inc. of the U.S. and innovative information tech- customers as possible and to Asahi Glass of Japan formed a nologies are helping to usher respond faster to their needs. joint venture to produce color in the networking society of Employees: 10,600 picture tube glass in Mexico. the 21st century. 1996 Sales: $1.85 billion Samsung Corning is also The company’s main busi- Tel: (82) 0331-210-5114 globalizing its R&D activities, nesses include software devel- Fax: (82) 0331-210-6363 opening a laboratory in opment, software package Major Products: audio and Germany. sales and management of the video parts, parts for mobile Samsung Corning has been Samsung Group information communications, parts for selected as a model case systems. Samsung SDS computers and computer study of a successful joint ven- develops solutions in step with peripherals, materials, general ture by the Harvard Business rapidly changing needs by and industrial use compo- School, illustrating its out- integrating hardware, software nents, optical thin-film com- standing management. The ponents, automotive products company’s overseas subsidiaries have been cited as models of successful localization by overcoming cultural differences. 46-67 03.1.2 4:36 PM ù`51

and network products. It also in the world, with annual sales reliability and precision to the systems such as magnetic provides training and consult- of $12.4 billion, annual growth Korean market. Technologies resonance imaging (MRI), ing for system design as well of 38%, net profit of $621.1 for measurement, computation computerized tomography as various on-line services. million and 20,000 employees. and communication are being (CT), ultrasound, X-ray and Specific projects completed Employees: 6,050 integrated to create new, com- patient monitoring systems. by Samsung SDS include an 1996 Sales: $925.5 million prehensive solutions for clients. SGMS offers a wide range automated clearance sys- Tel: (82) 2-3429-2114/3114 The Computer Division mar- of local ultrasound products tem for Korea’s Customs Fax: (82) 2-3429-2240 kets palmtop PCs, inkjet print- such as the RT-MAX, RT4600, Administration and a workers’ Main Businesses: systems ers, UNIX RISC work stations LOGIQα200 and LOGIQ400. compensation system for the integration, systems manage- and various server systems. It has also begun manufactur- Ministry of Labor. The company ment, computer-aided The division leads Korea in the ing the first CT systems (Sytec has also contributed signifi- design/computer-aided manu- development of unrestricted 1800i) in Korea. Exports of the cantly to the construction of facturing, geographic informa- client/server systems. It also LOGIQα200 next-generation Korea’s information technology tion systems, on-line services, holds a 48% share of the ultrasound systems began infrastructure. electronic data interchange, world market for UNIX sys- in January 1997, following The company’s systems information technology training tems and supplies a wider the outstanding success of integration services include range of RISC systems than their domestic launch in troubleshooting for companies Hewlett- any other company. The divi- October 1996. and providing fast, cost-effec- sion was first to introduce SGMS recently began man- tive solutions to client prob- Packard Korea Deskjet printers to Korea, ufacturing the LOGIQ400 lems. Samsung SDS has also Co.,Ltd. helping to popularize color color digital ultrasound sys- developed its own business Hewlett-Packard Korea was printers. It now supplies the tem, which gives customers re-engineering methods to cre- established in 1984 as world’s best printers and net- more choices for greater ate new work environments. Samsung Hewlett-Packard, a work products, Scanjet and satisfaction. In 1996, Samsung SDS joint venture between Hewlett- PC servers. In addition to out- The company’s strict quality launched Unitel, which offers Packard and Samsung standing products, Hewlett- control systems have earned news, data bases, on-line edu- Electronics. The present cor- Packard Korea offers clients it ISO 9001 and EN 46001 cation, home shopping and porate name was adopted in comprehensive service certifications as well as the various forms of entertainment. March 1995. support, consulting and CE mark. The LOGIQα200 This user-friendly on-line serv- This company markets optimal solutions to suit has been approved by UL, ice has a wide variety of multi- Hewlett-Packard computers, their specific needs. FDA, MHW, IEC and CSA. media features which enable instruments, medical diagnos- Employees: 1,070 The medical systems busi- customers to perform many tic machines and other types 1996 sales: $808.2 million ness requires advanced tech- tasks with a single mouseclick. of analytical equipment. The Tel: (82) 2-7690-114 nology covering both basic The Samsung SDS informa- company’s production unit, Fax: (82) 2-784-7084 and applied science to ensure tion technology academy has a Instrument Operation, in Major Products: computer sys- high added value and envi- systematic and comprehensive Seoul, Korea, develops tems and peripherals, printers, ronmental safety. SGMS is computer training program to power supply units and manu- instruments, medical diagnos- strengthening its R&D satisfy the needs of novices factures more than 15,000 tic machines, analysis equip- activities to meet this goal and as well as professionals. a year for sale worldwide. ment, components to increase its technological In September 1997, SDS The International Purchasing competitiveness. will open a Samsung Multi- Division, which first exported Samsung-GE Employees: 269 Campus, which will utilize the more than $100 million of Medical 1996 Sales: $81.5 million latest teaching methodology products in 1993, procures Tel: (82) 342-406-001 to cultivate information tech- electronic parts and compo- Systems Fax: (82) 342-42-0423 nology specialists. nents from domestic manufac- Co.,Ltd. Major Products: Samsung SDS is an infor- turers and exports them to MRI systems, CT systems, Samsung-GE Medical mation services integrator that Hewlett-Packard production X-ray systems, ultrasound Systems (SGMS) was estab- uses information technology to facilities around the world. systems, PET systems, lished in 1984 as a joint create maximum value for Samsung Electronics and gamma cameras, radiotherapy venture between the Samsung clients by improving existing Hewlett-Packard also work systems, networking systems, Group and General Electric. work methods and developing together on workstations pro- patient monitoring systems, SGMS develops, produces, new, more effective ones. By duced in Korea, which are fetal monitoring systems, markets and services diagnos- the year 2005, Samsung SDS then exported worldwide defibrillators, EKG systems, tic and nondiagnostic imaging strives to be one of the top 10 through Hewlett-Packard ambulatory systems, information service companies sales channels. central piping systems, The company is the fore- laser systems most supplier of sophisticated instruments with world-class 46-67 03.1.2 4:36 PM ù`52

MACHINERY

Samsung Machinery Subgroup sales increased nearly 13% to $6.1 billion.

Samsung Heavy Industries received orders for a liquid-natural-gas (LNG) carrier and a 103,000DWT drillship, which will be the largest drillship ever built.

Samsung Aerospace is the prime contractor for a project to develop commercial airliners in Korea.

Employees: Samsung Heavy Industries Co., Ltd. 20,105 Samsung Aerospace Industries, Ltd. Samsung Watch Co., Ltd. Sales: $6.1 billion 46-67 03.1.2 4:36 PM ù`53

Samsung 150 dealers. Among these Samsung ates camera production equipment models, the ST120- facilities in Mexico and China Heavy 2 loader was selected by Aerospace and has captured 7% of the Industries Construction Equipment maga- Industries, Ltd. world camera market. Co.,Ltd. zine as one of the “Top 100 Samsung Aerospace Employees: 8,455 Products for 1996.” SHI is 1996 Sales: $1.63 billion Samsung Heavy Industries Industries (SSA) was estab- also exporting 4,000 forklift Tel: (82) 2-3467-7114 (SHI) leads Samsung’s lished in 1977 to overhaul and trucks in 13 different models Fax: (82) 2-3467-7080 Machinery subgroup. The assemble aircraft engines. It to North America through Main Businesses: aircraft and company offers a wide range has grown and diversified to Nissan’s sales network. aircraft parts, gas turbines, of products and activities, become one of the Samsung Samsung’s plant business military hardware, cameras, including shipbuilding and Group’s most important affili- continued to perform well in opto-electronics devices, offshore structures, plants ates. SSA has played a key 1996. TPI, a Thailand-based semiconductor lead frames, and industrial machinery, role in developing Korea’s petrochemical company, industrial robots, factory construction equipment aerospace industry and has ordered 56 spherical storage automation systems, machine and construction. used its aerospace-related tanks for oil and gas. With a tools, helicopter shuttle SHI has a global network to technology to expand into combined capacity of 10 million service support sales and after-sales the defense and precision barrels, these tanks represent service. The network spans industries. the world’s largest one-time 12 countries and consists Samsung Aerospace is the Samsung order. SHI also delivered a of five local subsidiaries and only company in Korea capa- large-scale offshore platform Watch Co.,Ltd. 12 branches. To supply over- ble of producing a wide range to Vietnam. Samsung Watch Co. (SWC) seas customers more quickly, of different aircraft. SSA is the Samsung Heavy Industries was established in 1983. Samsung Heavy Industries has prime contractor for the Korea operates five closely linked SWC produces 1.8 million also established a construction Fighter Program, which will R&D centers, including the wristwatches, wall clocks and equipment plant in the U.K., a produce 120 advanced F-16s main facility at Daeduk, Korea, desktop clocks a year, main- tank and plant production facil- by 1999. The technology and specialized laboratories at taining a 20% share of the ity in Thailand and a shipyard gained in this project is already different plant sites. These Korean market. In January in China. being applied to develop facilities develop technology 1995, Samsung Watch ended Since its inception, SHI has advanced trainer aircraft and for system design and engi- a technology-sharing arrange- received orders for more than helicopters. Samsung neering, automation and ment with Seiko of Japan and 210 ships from many of the Aerospace is also the prime control technology, material acquired a watch-case plant world’s leading shipping com- contractor within a consortium engineering and new product (76 employees, annual sales panies. Vessels already deliv- of Korean companies that is development. They also com- of $7.8 million) from Nouvelle ered include very large crude working on the development of bine various existing technolo- Piqueres SA in Bassecourt, oil carriers; high-speed ves- commercial airliners. gies to create new concepts. Switzerland in order to focus sels; shuttle tankers; floating In addition, SSA is produc- SHI operations are environ- production on Swiss-style production, storage and ing military hardware such as mentally friendly and ISO watches and clocks. offloading tankers; and super- a self-propelled artillery piece. 14001 certified. Employees: 100 large container ships. In 1996, It is also involved in a project Employees: 11,550 1996 sales: $67.1 million Samsung Heavy Industries to develop satellites. In addi- 1996 Sales: $4.0 billion Tel: (82) 342-40-8114 received orders for an LNG tion, the company produces Tel: (82) 2-3458-6100 Fax: (82) 342-40-8312/3 carrier and a 103,000DWT machine tools, electronics Fax: (82) 2-3458-6264 Major Products: wristwatches drillship, which will be the product assembly equipment Main Businesses: shipbuilding, (Rollei, Burett, Samsung, largest of its type ever built. (chip mounters), semiconduc- offshore structures, steel Kappa, Dolce), clocks (Rollei, Samsung is also developing tor assembly equipment (wire structures, cargo and material Kappa) a massive 8,000TEU container bonders) and lead frames for handling systems, power ship, further evidence of its customers worldwide. Other systems, marine engines, industry- leading technology. products include cameras, tank farms and systems, Samsung Heavy Industries opto-electronics devices and parking systems, construction exports excavators, loaders factory automation systems. equipment, forklift trucks, and other construction equip- Overseas, Samsung construction ment worldwide through Aerospace has acquired Rollei a network of more than Foto Technic GmbH., a German camera maker, and subsequently developed the world’s first 4-power zoom camera. SSA currently oper- 46-67 03.1.2 4:37 PM ù`54

CHEMICALS

Samsung General Chemicals is expanding into production of new base materials for electronics and automobile components, pharmaceuticals and agrochemicals.

The Korean government recognized Samsung Fine Chemicals’ efforts to expand Korea’s chemical industry by awarding it the Export Tower Trophy and Bronze Tower Industrial Decoration.

Samsung-BP Chemicals completed a new vinyl acetate monomer plant in 1996 at the Ulsan petrochemical complex in Korea.

Employees: Samsung General Chemicals Co., Ltd. 3,590 Samsung Petrochemical Co., Ltd. Samsung Fine Chemicals Co., Ltd. Sales: Samsung-BP Chemicals Co., Ltd. $2.0 billion 46-67 03.1.2 4:37 PM ù`55

Samsung such as developing base and was the first domestic water treatment plants in materials for pharmaceuticals PTA maker to be designated October 1996. General and agrochemicals. as an “environment-friendly Sales in 1996 totaled $432 Chemicals In the future, Samsung enterprise” by the Korean million. SFC aims to have General Chemicals will become government. annual sales of $1.3 billion by Co.,Ltd. less reliant upon intermediate Employees: 530 the year 2000. Samsung General Chemicals chemicals and polyolefins by 1996 Sales: $600 million Employees: 1,000 (SGC) operates a large petro- expanding into value-added Tel: (82) 2-772-6321 1996 Sales: $432 million chemical complex with a areas such as base materials Fax: (82) 2-754-5620 Tel: (82) 2-772-1900 naphtha cracking center and for sophisticated new materi- Product: purified terephthalic Fax: (82) 2-772-1809 14 downstream plants that als for electronics and automo- acid (PTA) Major Products: methylamine, produce everything from base biles as well as base materials dimethylformamine, malonate, olefins to intermediate chemi- for pharmaceuticals and agro- Samsung furfuryl alcohol, methyl cellu- cals, polyolefins, specialty chemicals. SGC aims to be lose, ethyl amines, ammonia, chemicals, and compounding one of the world’s top 10 Fine Chemicals urea, melamine, methyl chlo- resins in a single, continuous chemical producers early in Co.,Ltd. ride, formic acid, tetramethyl process. the 21st century. Samsung Fine Chemicals ammonium chloride, tetra The complex, located on Employees: 1,850 (SFC) was established in methyl ammonium hydroxide, Korea’s west coast at Seosan, 1996 Sales: $940 million 1964 as Asia’s largest maker caustic soda, chemical pro- has received both ISO 9002 Tel: (82) 2-772-6114 of urea fertilizer. SFC has con- duction equipment (reactors, and ISO 14001 certification, Fax: (82) 2-772-6615 tinued to diversify its business heat exchangers, etc.), envi- signifying that all operations Major Products: ethylene, and currently produces every- ronmental protection facilities (production, loading, customer propylene, butadiene, C raffi- 4 thing from general chemicals (waste incinerators, desulfur- services and environmental nates, purified terephthalic to value-added specialty chem- ization systems, etc.) protection) comply with strict acid, styrene monomer, ethyl- ical products. The company is internationally recognized ene oxide/ethylene glycol, Korea’s leading specialty standards. Samsung-BP paraxylene, purified tereph- chemical manufacturer. Moreover, Samsung General Chemicals thalic acid, low-density poly- Recently, SFC has also Chemicals is using the latest ethylene, ethyl vinyl acetate, diversified into pharmaceutical Co.,Ltd. energy-saving methods to max- linear low-density polyethylene, base materials, epichlorohydrin Established in 1989 as a joint imize productivity. In 1996, high-density polyethylene, and industrial-use specialty venture between Samsung the company was awarded a polypropylene, compounding paints. and the U.K.’s BP Chemicals, Korean Presidential commen- resins The Korean government Samsung-BP Chemicals pro- dation for gas safety and the has recognized Samsung Fine duces 350,000 tons of acetic government’s grand prize for Chemicals’ efforts to develop acid and 10,000 tons of energy management. Samsung the local chemical industry. In hydrogen annually. These At least 50% of SGC’s total Petrochemical 1996, the company received products are supplied as a output is exported. As a result, Co.,Ltd. the $100 Million Export base material for downstream Samsung has been a major Samsung Petrochemical Co. Tower Trophy and the Bronze products. contributor to making petro- (SPC) was established in Tower Industrial Decoration. Samsung-BP Chemicals chemicals one of Korea’s 1974 as a joint venture among Samsung’s technical expertise exports high quality acetic acid largest export items. To build Samsung, Amoco and Mitsui has also earned the IR52 of 99.9% purity made through upon this strength, SGC to produce purified tereph- Chang Young-Sil Award and methanol carbonylation–a works hard to acquire new thalic acid (PTA), the preferred ISO 9002 certification. high-efficiency, low-cost technology and diversify raw material for polyester. SFC is also globalizing its process developed by the markets. Since production began in research and development UK’s BP chemicals–to Japan, Samsung General 1980 at its No. 1 unit at the activities. At the same time, China, Taiwan and southeast Chemicals has established Ulsan petrochemical complex technology exchanges with Asia as well as supplying technology information centers in Korea, SPC has secured its leading overseas research domestic demand. in Russia and Germany, and status as the largest PTA sup- institutes are turning potential Acetic acid produced by branch offices in Tokyo, Hong plier to the Korean merchant specialty chemicals research Samsung-BP Chemicals is Kong and Shanghai. SGC is market, with annual production results into commercially viable used widely in everyday life– expanding from its established capacity of 900,000 tons. products. Samsung has both directly and indirectly–by markets in Asia to include The PTA produced by SPC established a jointly ventured providing raw material for spe- South America, Europe and is used mainly as the raw research center at Russia’s cialty chemical products such Africa. material for polyester fiber. Zelinsky Institute of Chemistry as vinyl acetate monomer, The Samsung Chemical It also has broad use in non- and is expanding strategic esters, fibers, pharmaceuti- Group Research Institute at fiber applications such as PET alliances with overseas biotech cals, PTA solvents, dyes and Daeduk (outside Taejon), plastics, food and beverage venture companies. flavorings. Korea has been researching containers, films, pigments, Technology experts from out- Samsung-BP Chemicals ways to improve the physical plasticizers and materials for side of Korea are being hired aims to be the top Asian properties of resins, develop engineering plastics. As such, on a steady basis and now acetyls producer by 2000 and new materials, upgrade PTA is an outstanding base make up 30% of SFC’s one of the world’s top three processes and find new cata- material for the 21st century. research staff. acetic acid makers by 2005. lysts. Recently, the center The superior productivity Samsung Fine Chemicals To meet this goal, the company merged with the Samsung and efficiency of its three pro- believes strongly in working for will continue to expand its Fine Chemicals R&D Center, duction units have enabled the benefit of society. As part acetic acid production capacity. strengthening its activities in SPC to a provide a stable of an ambitious program to In 1996, it completed a new advanced specialty chemicals supply of high quality PTA to enhance environmental protec- plant to produce vinyl acetate Korean polyester fabric pro- tion at plant sites, the com- monomer, which is an eco- ducers so that they can main- pany completed new waste nomic acetic acid conductor. tain global competitiveness. Employees: 210 SPC is also taking the lead in 1996 Sales: $136 million clean operations technology Tel: (82) 2-753-5644 Fax: (82) 2-753-8338 Major Products: acetic acid, vinyl acetate monomer 46-67 03.1.2 4:37 PM ù`56

FINANCE

Samsung Life Insurance became the ﬁrst Korean company to enter the real estate market in China.

Samsung Fire & Marine Insurance continues to innovate new customer services, such as its computerized, on-the-spot Auto Claims Adjustment System.

Samsung Securities became one of Korea’s top 10 securities ﬁrms, and ranks number one in institutional investor accounts and corporate bond underwriting.

Employees: Samsung Life Insurance Co., Ltd. 88,091 Samsung Fire & Marine Insurance Co., Ltd. Samsung Card Co., Ltd. Sales: Samsung Securities Co., Ltd. $22.9 billion 46-67 03.1.2 4:37 PM ù`57

Samsung Employees: 79,600 Samsung Samsung 1996 Sales: $16.8 billion Life Insurance Tel: (82) 2-751-8000 Card Co., Ltd. Securities Co., Ltd. Fax: (82) 2-751-8100 Samsung Card was established in 1988. The company Co., Ltd. Samsung Life Insurance’s Major Products: life insurance, has developed into one of Samsung Securities Co. (SLI) achievements are numer- real estate Korea’s leading credit card (SSC) became a Samsung ous. SLI has led Korea’s life providers, recording 5.67 mil- Group member in November insurance industry in annual Samsung lion cardholders, $10 billion in 1992. At the time, it ranked sales for 10 years in a row. In Fire & Marine annual card gross volume, and only twenty-fifth among the 32 1995, the company became $3 billion in total assets as of Korean securities firms. Today, the first in Korea to break the Insurance December 31, 1996. after five years of rapid 10 million policy mark for busi- Co., Ltd. Samsung Card’s business growth, the company ranks in ness in force. Samsung has Samsung Fire & Marine philosophy is summed up in the top 10. Samsung also been ranked first among all Insurance is Korea’s largest the phrase “Best Service, First holds first place for institution- domestic life insurers by the non-life insurance company, Card.” In this spirit, Samsung al investor accounts and cor- Korea Insurance Supervisory with a home office staff of Card is committed to offering porate bond underwriting. Board for the past 12 years. more than 5,100 employees customer convenience and to SSC has achieved this rapid SLI’s commitment to serving and 30,000 agents and field constantly improving the level rise in the industry by adopting people and to aggressive employees. Samsung is of financial services available a business approach empha- management improvements growing to become a world- in Korea. The company contin- sizing customer satisfaction. earned the company the third renowned insurance company, ues to develop new kinds of This management approach annual Presidential Prize for providing the ultimate pro- credit cards, including the is based on business ethics, Corporate Culture, presented tection for customers. Samsung Motors card. for which customers have in October 1996. Under the managerial vision Samsung is expanding rated SSC as “a company I In 1994, Samsung initiated of “a good company contribut- arrangements with service can trust” and as “a company the Korean insurance indus- ing to society,” Samsung is establishments that offer I would like to do repeat try’s first quality assurance making dramatic improvement interest-free installment sales business with.” Samsung system. Under this system, a in its products and services and has broken new ground Securities is staffed by a team policy holder can cancel a pol- through ongoing management in the industry by introducing of capable and confident pro- icy for a full refund or take out innovation focused on quality a unique service warranty fessionals who are proud to a different policy within three and customer satisfaction. system. The company has work for a company that is months of signing the policy, if As the industry leader, also created a one-stop cus- helping to improve the industry. not completely satisfied. Samsung continues to intro- tomer response system and SSC aims to be one of the SLI has a global investment duce innovative, high-quality a line-stop system for unsound best overall securities compa- network in place and is cur- insurance products inspired by service establishments. nies in the 21st century, so rently investing in stocks and a number of constructive ideas As a result of these efforts, research functions are being bonds in 15 countries to in the sprit of “providing the the Korea Management strengthened and operations spread out risk and increase greatest satisfaction to the Association selected Samsung are being globalized. Samsung profit from its asset manage- customers.” To become a as the top provider of cus- believes that the opening of ment activities. world leader in the 21st cen- tomer satisfaction among Korea’s financial markets will In 1996, Samsung Life tury, Samsung is also directing domestic credit card compa- serve as an opportunity for a Insurance became the first multiple efforts to nurture glob- nies in 1996. new surge in growth, and all Korean company to enter the alized human assets at home The Samsung Card, which employees are working with a Chinese real estate market. By and to secure highly skilled is now honored in 220 coun- new excitement about the expanding its property devel- overseas human resources. tries, is leading the globaliza- future. opment business internation- Ties and cooperation with lead- tion of Korean credit cards. Samsung Securities is also ally, SLI has generated greater ing foreign insurance compa- Arrangements have been building an advanced infra- returns on its investments. nies are also increasing rapidly. concluded with Union Credit structure to manage its Samsung Life Insurance is Samsung participates in Card of Japan and China growth. This includes installing actively involved in helping the a variety of community service International Travel Service. state-of-the-art information communities it serves. The events and cultural programs. A global service is now being networks in preparation for Samsung Life Insurance These include donating guide offered in the Korean language diversification into strategic Public Welfare Foundation dogs to the visually impaired, to assist Korean travelers. new business areas such as was established in 1982 and dispatching international Samsung Card has always futures trading, options trading, currently operates a total of 19 service teams to help people stayed a step ahead of the and mergers and acquisition daycare centers around Korea in developing countries and competition. Today, the com- brokerage. to assist working mothers of sponsoring an international pany continues to respond to With its highly qualified and low-income families. SLI also “Go” tournament. the rapidly changing business dedicated staff and manage- provides free meals for the By the year 2000, Samsung environment by developing ment, high-tech information elderly and pays for corrective Fire & Marine Insurance plans more functions for credit cards networks and forward-looking surgery for children with facial to attain a total premium through the use of a built-in business strategy, Samsung deformities. The company is in income of $8.7 billion, a semiconductor chip. Securities is well positioned to the process of building a work force of more than Samsung will continue to lead the industry into the state-of-the-art retirement com- 6,400 home office staff and expand its business activities future. munity and opened the Korea 44,000 agents and field and create new services to Employees: 884 Institute of Social Psychiatry. employees, and total assets enhance customer conve- 1996 Sales: $171 million SLI was also responsible of $13.7 billion. nience and satisfaction. Tel: (82) 2-726-0114 for opening the Samsung Employees: 5,107 Employees: 2,500 Fax: (82) 2-726-0298 Medical Center. 1996 Sales: $3.85 billion 1996 Sales: $661.5 million Major Products: stock and By satisfying customers Tel: (82) 2-777-7000 Tel: (82) 2-727-8000 bond brokerage, securities with top quality products and Fax: (82) 2-758-7311 Fax: (82) 2-753-1047 savings products, bond man- services, Samsung Life Main Businesses: fire insur- Major Products: cash ad- agement funds, repurchase Insurance aims to be one of ance, marine insurance, auto- vances, installment purchases, agreements, certificates of the world’s leading insurance mobile insurance, individual loans, factoring, travel arrange- deposit, beneficiary certifi- companies, with 10 million annuities, personal accident ments, payment guarantees, cates, commercial paper policyholders and $74.5 billion insurance, overseas traveler’s on-line sales, insurance in assets. insurance 46-67 03.1.2 4:37 PM ù`58

AUTOMOTIVE

Samsung Motors completed its new state-of-the-art manufacturing plant in Pusan, Korea three months ahead of schedule. The company will introduce its ﬁrst vehicle in early 1998.

Samsung Commercial Vehicles is expanding its product line to include light and medium trucks to complement its successful heavy truck models.

Employees: Samsung Motors Inc. 4,900 Samsung Commercial Vehicles Co., Ltd. Samsung Automotive Subgroup was formed in 1997. Samsung Commercial Vehicles was previously part of Samsung Heavy Industries, and its 1996 sales are included in our Machinery Subgroup. 46-67 03.1.2 4:37 PM ù`59

Samsung and designing new products customer satisfaction and Samsung’s 15-ton dump truck that closely reflect the culture contribute to Korea’s econo- has been selected by leading Motors Inc. of local markets. mic growth. As a new player, daily newspapers as a “hit Samsung Motors Inc. was To globalize its operations Samsung Motors will acceler- product” in Korea in each of established on March 28, as quickly as possible, ate technological development, the four years it has been on 1995 with the goal of develop- Samsung Motors has opened especially in the areas of new the market. The company’s ing an improved and distinctive branch offices in Detroit, Tokyo materials, automation and 18.5-ton cargo truck received automobile, and improving the and Frankfurt. Also, in Korea, quality management. The com- six “hit product” selections in overall quality of Korean-made the Institute of Automobile pany will stimulate competition 1996, as Samsung continues vehicles. Culture has been opened to in technology and quality to take the domestic truck The company has com- offer and realize a new type of among domestic auto makers, market by storm. pleted a state-of-the-art auto- human-oriented automobile which will improve their Samsung Commercial mobile plant, training programs culture as a part of the com- international competitiveness. Vehicles operates a service to secure advanced technol- pany’s effort in realizing its Samsung Motors’ initial factory for heavy trucks at ogy, pilot plant programs and corporate philosophy. focus will be on the manufac- Pyungtaek, Korea. The factory other preparation work. The A new customer-oriented ture and sales of automobiles is equipped with various new plant, which was built on approach is also being taken and automotive parts. The facilities, such as a sauna, to a nearly 1.6 million-square- in the area of sales. Samsung company will gradually expand maximize the comfort and meter site in Pusan’s Shinho Motors showrooms will not operations to include full auto- convenience of customers. District, was completed three only be locations to purchase motive services, including To ensure that customers months ahead of schedule. cars, but also one-stop service financing and leasing, by nationwide get quick service, With optimal layout and the stations that provide mainte- 2010. A full lineup will be Samsung operates a network latest facilities, Samsung nance and insurance services, developed to achieve economy of over 30 service centers Motors’ Pusan plant is handle used cars and offer of scale in production. around the country and has equipped with an intelligent accessories. The concept of Samsung’s independent tech- more than 60 service vehicles. body assembly system. This providing a total solution for nology and a high level of The Pyungtaek, Korea service computer controlled manufac- customers is part of the new quality will set a new standard center has 24-hour repair and turing system can produce automotive culture envisioned for Korea’s automotive industry. a status room to respond to up to eight different models by Samsung Motors. Sales Samsung Motors has invested customer needs any time and simultaneously, maximizing representatives will be trained approximately $2.5 billion to any place. efficiency. The first Samsung to take care of the entire build its Pusan plant and Samsung has significantly model, a midsized sedan due process related to an Technical Center. By 2002, expanded its warranties. The in early 1998, will be equipped automobile. total investment will amount to chassis and general parts war- with an aluminum engine for Samsung Motors will work approximately $5.5 billion. ranty has been extended from the first time in Korea. Over closely with other Samsung Employees: 3,500 one year or 20,000 kilometers time, Samsung Motors will affiliates to maximize synergies Tel: (82) 2-3707-5223 to three years or 60,000 kilo- diversify its product lineup to to ensure the fastest possible Fax: (82) 2-3707-5262 meters. The warranty terms include multipurpose vehicles, success for overall operations. Main Business: passenger for power trains have been trucks and other vehicles. Samsung’s auto business is car manufacturing increased from three years Samsung Motors’ Technical based on a subgroup system or 60,000 kilometers to five Center, established in June that combines the relevant Samsung years or 100,000 kilometers, 1997, will play a pivotal role in technologies and resources whichever comes first. These the company’s research and from around the group. The Commercial improvements have made development efforts. The subgroup is composed of Vehicles Samsung the domestic leader Center aims to develop a high Samsung Motors, Samsung in after-sales service quality. value-added automobile with Corporation Motor Sales & Co., Ltd. Based on customer satisfac- excellent quality at a reason- Marketing Group, Samsung The first trucks rolled off tion surveys run by the Gallup able price. To achieve this Electro-Mechanics Automotive Samsung Commercial organization, Samsung has goal, the Center has set five Product Systems and Vehicles’ (SCV) production been ranked number one for major strategies for technical Samsung Commercial line in May 1993. Until recently, heavy trucks among all Korean development by 2010: design Vehicles Co. Samsung will the company’s focus had been truck manufacturers. innovation to lead the industry apply the competencies of on producing heavy trucks. Employees: 1,400 in the 21st century, scientific these companies to the To build on this strength, SCV Tel: (82) 53-589-8000 design, total product evalua- research and development, is building a state-of-the-art Fax: (82) 53-586-2670 tion capability, optimal product production, sales and market- facility on a nearly 6.5-million- Major Products: 15-ton dump development processes and a ing of cars; the development square-foot site in Taegu, trucks, 6m3 concrete mixer creative research environment. and supply of high quality Korea to produce light, medium trucks, 73-ton tractors, 18.5- As part of its research and parts and components; and and heavy trucks, and main ton cargo trucks, 22.5-ton development effort, Samsung the development and produc- components such as engines dump trucks, 11.5-ton cargo Motors set up a design studio, tion of trucks and recreational and transmissions. By the year trucks, 14-ton cargo trucks, Samsung Design America, vehicles. 2000, the Taegu complex will 68-ton tractors, 68-ton BCT Inc. (SDA), in California in With a new approach to the be capable of turning out tractors, 16kl tanker trucks, 1995. SDA is equipped with automotive industry and the 100,000 light trucks, 6,000 18kl tanker trucks, 20kl the latest computerized equip- diverse resources of Samsung heavy trucks and 100,000 mul- aluminum tanker trucks, ment and is staffed by highly affiliates, Samsung Motors tipurpose vehicles a year. fire trucks skilled people. The design plans to offer the best SCV markets its heavy studio will focus on creating trucks (over 20 different models) through a network of more than 30 locations nationwide. 46-67 03.1.2 4:37 PM ù`60

OTHER SAMSUNG COMPANIES

Samsung Corporation exported $14.2 billion worth of goods to 150 different countries, afﬁrming its position as the largest general trading company in Korea.

Samsung Engineering completed construction of ethylene and ethylene oxide/ethylene glycol plants for China’s Jilin Chemical Co. and received an order for a 700,000-ton/year ethylene plant from the Thai Petrochemical Industry.

Cheil Industries opened the Golden Fashion Center in Kumi, Korea, integrating the company’s textile production capabilities into a single, high-tech operation.

Employees: Samsung Corporation Samsung Engineering Co., Ltd 35,661 Cheil Industries Inc. Sales: Joong-Ang Development Co., Ltd. The Shilla Hotels & Resorts Co., Ltd. $34.9 billion The Joong-Ang Ilbo Cheil Communications Inc. S1 Corporation 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 46-67 03.1.2 4:38 PM ù`61

Samsung provide a complete line of which were completed nine Lansmere 170 in the U.S. and services, and Samsung months ahead of schedule. Europe, where it has received Corporation Corporation’s extensive inter- The company will complete lavish praise. Samsung Corporation has national network will serve three major projects in 1997: a The company has also been dedicated to the busi- to export Samsung-built lube base oil plant in Thailand, earned a reputation as a ness of general trade for automobiles. a low-density polyethylene world-class fashion materials nearly 60 years. Since being The Apparel Division owns plant in Singapore and an eth- producer by developing a wide designated as Korea’s first Essess, the top domestic ylene oxide/ethylene glycol range of special-function fab- General Trading Company family brand, and has recently plant in Indonesia. In early rics. The company has also (GTC) by the Korean govern- acquired the government- 1997, Samsung Engineering established its first offshore ment in 1975, it has focused approved “A/S mark” for its received orders for a $500 mil- production facility, Tianjin on developing overseas mar- outstanding customer service. lion caprolactam plant in Samsung Wool Textile Co., kets. It also leads Korea’s The Retail Division offers Indonesia, a $207 million gas in China. international trading activi- an advanced retail system treatment plant in Egypt, a gas CII’s fashion business ties. In 1996, Samsung designed from the customer’s processing plant in India and encompasses casual and Corporation exported perspective. It offers reason- the largest BTX plant in formal wear for men and $14.2 billion worth of goods able prices and quality prod- Taiwan. women. Foremost among its to 150 different countries, ucts, creating large-scale SECL operates Korea’s first mens wear products are affirming its position as the integrated retail-cultural cen- Environment Research and Cardinal suits, made with a largest GTC in Korea. ters all over the country. The Development Center, which method that requires no adhe- In recent years, Samsung UTOO Zone store, opened in is developing technology for sives, and the Galaxy line of Corporation has merged May of 1996 in Seoul’s fash- nondischarge waste water formal wear for businessmen. with Samsung Engineering ionable Myungdong District, is treatment, advanced water Recent additions to CII’s col- & Construction and has an innovative multishop which purification, industrial waste lection are Vincere golf wear expanded its business into specializes in fashion apparel incineration and ethanol fuel and the Cynthia Rowley brand, retail and automobile sales. and accessories for young production. The company with Cheil securing exclusive The company is composed of women. In 1997, Samsung recently established a joint rights to market Cynthia five major divisions: trading, Corporation will open two environment research and Rowley throughout Asia. As construction, apparel, retail more multipurpose shopping development center with part of an ongoing globaliza- and motor sales. In 1996, centers in Seoul and a large- the Polytechnic Institute tion drive, Cheil also acquired Samsung Corporation scale super center in Taegu, of New York to study pro- the U.S. apparel company strengthened its standing as Korea. cesses for biological Pamela Dennis. the largest company in Korea Employees: 9,300 nutrient technology. CII’s Chemical Division by increasing its gross sales to 1996 Sales: $28.6 billion SECL’s research successes won the Samsung Group’s $28.6 billion. Tel: (82) 2-751-3345 have won the company the 1996 Silver Technology Prize Operating from 109 over- Fax: (82) 2-728-4000 Korean government’s first for developing high-quality, seas offices, the Trading Main Businesses: trade, con- Environmental Technology HCFC-resistant resin. The Division is involved in a wide struction, retail, apparel manu- Prize, awarded in December division has also adopted variety of projects worldwide. facture and sales, automobile 1995. Samsung Engineering a consolidated management In addition to general trading, sales received ISO 9001 certifica- system that integrates all the division carries out fund tion in 1994. Two years later, processes, from new order management, natural resource Samsung Germany’s TüV Bayern receipt, production and development and project granted SECL’s environmental shipment to warehousing, organization. Other functions Engineering quality monitoring system sales and equipment status include managing complex Co., Ltd. ISO 14001 certification. monitoring. three-way trades and barters, Samsung Engineering Co., Employees: 1,661 Cheil is the first in the and various investment Ltd. (SECL) started out in 1996 Sales: $1.23 billion Korean chemical industry to projects. the 1970s by focusing on the Tel: (82) 2-3458-3000 receive ISO 14001 certifica- The Construction Division design and construction of Fax: (82) 2-3458-4047/50 tion for environmental friendli- carries out various construc- petrochemical plants and Main Businesses: design, ness. Overseas distribution tion, civil engineering, industrial fertilizer plants. After joining procurement, construction centers are being set up to plant and land development the Samsung Group, SECL supervision and operation improve global operations and projects around the world, grew rapidly. In the 1980s, management for petrochemical prepare for the future. with the most recent being the company expanded into plants, power plants, refineries Chemical Division products a nuclear power plant con- facilities for electronics prod- and gas plants, industrial include general-purpose resins struction project. In addition ucts, textiles and automobiles plants, and environmental such as acrylonitrile butadiene to completing the Malaysia as well as oil refineries, gas plants styrene and polystyrene as KLCC Petronas Tower production facilities, power well as reinforced engineering construction project, the plants and environmental Cheil plastics; epoxy molding com- Construction Division is cur- protection facilities. In the Industries Inc. pound, used in semiconductor rently working on the 63-floor 1990s, Samsung Engineering packaging; and Staron brand Cheil Industries Inc. (CII) was Royal Charoen Krung Building is exporting petrochemical artificial marble. CII has also established in 1954 as Korea’s in Thailand. The division is the plants and technology on a begun selling prefabricated first worsted wool textile pro- first in Korea to obtain ISO turnkey basis to such markets bathroom units under the IBR ducer. CII has grown steadily 14001 quality certification as Southeast Asia and China. brand name. ever since and has become for all operations related to In 1994, Thai Petrochemical CII employees are united a leading manufacturer of construction. Industry ordered a 300,000- behind the theme “Challenge textiles, fashion apparel The Motor Sales & ton/year ethylene plant; at 21,” which sets an ambitious and chemical materials. Marketing Division will be in the end of 1996, Samsung target of $2.5 billion in annual CII developed the world’s charge of marketing and serv- Engineering received a sales and $125 million in first wool fabric with a yarn icing passenger cars being follow-up order for a 700,000- annual net profits by the year count of 130 (130 meters of developed by Samsung ton/year ethylene plant. SECL 2000. yarn spun from a single gram Motors, which are scheduled also built the Bali power plant Employees: 4,240 of 1PP wool fibers). Cheil mar- for introduction in 1998. in Indonesia in 1994, and eth- 1996 Sales: $1.2 billion kets this exclusive product Integrated service centers will ylene and ethylene oxide/ethyl- Tel: (82) 2-751-3355 under the brand name be operated in Korea to ene glycol plants for China’s Fax: (82) 2-527-2100 Jilin Chemical Co. in 1996, Main Businesses: woolen yarn, worsted yarn, woolen 46-67 03.1.2 4:38 PM ù`62

fabric, worsted fabric, carpet, The company’s food-related coast. Situated on 21 acres of the company became Korea’s mens wear, women’s wear, business is supported by a landscaped natural parkland first press-related concern to casual wear, general-purpose sophisticated distribution sys- overlooking Chungmun Beach, begin offering an Internet resins, engineering plastics, tem which can be a model for The Shilla Cheju is an out- news service. Various special- prefabricated bathroom units, other Korean companies. standing Mediterranean-style ized data bases are maintained artificial marble Joong-Ang Development is structure. Korea’s official for use in publishing newspa- also helping to create enjoy- guests, including the world’s pers and for offering informa- Joong-Ang able indoor and outdoor living heads of state, royalty and tion services. spaces through its landscape politicians are frequent guests The Joong-Ang Ilbo is Development architecture and interior at this idyllic resort location. engaged in various cultural Co., Ltd. design activities. The main tenet of The events as part of efforts to Joong-Ang Development Co. As its scope of business Shilla’s management philoso- improve the quality of life for provides services to improve grows, Joong-Ang phy is to recognize and satisfy people. Employees are the quality of people’s lives. Development Co. remains guests’ needs with consis- encouraged to volunteer for The company is involved in committed to its pledge of tently high standards in both community service, and the resorts and golf course devel- ensuring customer satisfaction product and service. This has company has launched the opment and operation, build- through “customer-friendly” been the guiding principle in Newspaper in Education and ing engineering and energy services and “environment- the development of The Shilla Internet in Education campaigns development, catering serv- friendly” pursuits. Hotels & Resorts and will con- to support young people. The ices, landscaping and interior Employees: 3,079 tinue to be so in the future. company also sponsors an design. Joong-Ang is the 1996 Sales: $562 million With a five-year, multimillion- environmental preservation first official company in Tel: (82) 335-20-8530/3 dollar facilitywide renovation exposition each year. Korea to earn the Customer Fax: (82) 335-20-8549 completed and a new Employees: 1,443 Satisfaction (CS) certificate Main Businesses: resort devel- corporate identity in place, the 1996 Sales: $522.5 million mark for its outstanding serv- opment and operation, golf Shilla Seoul is primed to Tel: (82) 2-751-5114/9114 ice qualities. course development and achieve its goal to become one Fax: (82) 2-751-9709 Joong-Ang operates operation, building management of the world’s top hotels by the Internet [JOINS]: Everland, the world’s eighth and consulting, alternative year 2000. http://www.joongang.co.kr largest theme park, which energy, catering, restaurant Employees: 2,584 Main Businesses: The Joong- entertains 10 million visitors supply, landscaping, interior 1996 Sales: $285.98 million Ang Ilbo, WIN, The Economist, annually. Everland is divided design Tel: (82) 2-233-3131 Newsweek Hankuk Pan, into Festival World, with its Fax: (82) 2-233-5073 Stereo Music, Art Monthly, amusement rides and festivals The Shilla Main Businesses: The Shilla Literary Joong-Ang, Labelle, for year-round fun; Caribbean Hotels Seoul, The Shilla Cheju, Duty CALLA, Céci, JOINS, Ho-Am Bay, a unique water park with Free Shops, restaurants, golf Art Hall both indoor and outdoor & Resorts courses attractions; and the Everland Co., Ltd. Cheil Speedway, Korea’s first auto- The Shilla Hotels & Resorts The Communications motive race track. This budding takes its name from Korea’s Joong-Ang Ilbo “resort town” also features Inc. ancient Shilla Dynasty, The Joong-Ang Ilbo published seasonal flower festivals, a Cheil Communications, Inc. regarded as the “Golden Age” its inaugural edition on rare-animal zoo and more. On (CCI) is an integrated commu- for its outstanding art and September 22, 1965 and has the drawing board is the addi- nications company involved in culture. The company, which developed into one of Korea’s tion of hotels, ski slopes and a a wide range of activities, comprises two deluxe, interna- most respected daily newspa- golf course, which will make including advertising planning tionally recognized hotels in pers. On March 21, 1994, the this one of the world’s premier and production, sales promo- Korea, graciously combines company announced its “sec- resort complexes. tion, sporting events, large- these traditions with modern, ond foundation,” and offered Joong-Ang Development scale promotional events and world-class luxury. readers Korea’s first newspaper Co. has been managing two public relations. The Shilla Seoul, a 500- printed in a section format. The of Korea’s top golf courses for The company is among the room, 23-story property, rises company also hired a group of the past 30 years. In world’s 20 largest advertising impressively above a 23-acre Ph.D.-level professionals December 1996, the company firms and strives to become a private site on the slopes of for specialized reporting established a new corporate major player in international Namsan (South Mountain) in assignments. identity as the Anyang and market. Its “Vision 2001” goal the center of Korea’s capital As part of a globalization Dongrae Benest Golf Clubs, is to become one of the 10 city. Being a world-class, five- program, the company now reinforcing their world-class largest advertising agencies star hotel, The Shilla Seoul operates two bureaus and status. early in the 21st century. appears regularly in a number three branches overseas and Joong-Ang’s Building Cheil has established itself of top-level international maga- has dispatched more than 20 Engineering Division is com- as a leader of the Korean zine surveys, notably foreign correspondents around mitted to perfection and has advertising industry by apply- America’s Institutional Investor, the world. Information is also received ISO 9002 and ISO ing proven marketing commu- the U.K.’s Euromoney and supplied through more than 20 14001 certification. The divi- nications techniques, fostering Business Traveler, and many overseas wire services and sion has made noteworthy a talented staff of advertising others. newspaper companies which achievements in the area of professionals and pioneering The Shilla Cheju, a 330- have cooperative ties with the alternative clean energy, new media communications to room property, is the compa- Joong-Ang Ilbo. including the development of respond to international mar- ny’s second five-star hotel, The Joong-Ang Ilbo has solar water heating systems keting needs. located on the scenic island of increased its multimedia invest- and ice thermal storage Known for a strong strategic Cheju just off Korea’s south ments to stay abreast of the systems. approach to advertising, Cheil latest trends. In March 1995, 46-67 03.1.2 4:38 PM ù`63

established Korea’s first mar- more than 120 specialists, system, precision clinical technology exchange and marketing research center and who have developed the pathology and automated ket research management conducted the country’s first Tendent Security System, a material handling systems. training, operational trou- lifestyle research. unique home security and SMC takes advantage of the bleshooting, publishing papers CCI’s global network con- automated banking system. latest medical technology to on domestic and foreign busi- nects its Korean operation with S1 is growing along with provide the best treatment and nesses and economies, inter- the Americas, Europe and society and contributes to the services to patients. national academic exchanges Asia. It also has maintained a local community in many ways. Samsung Medical Center technology-sharing arrange- An in-house volunteer service shares its facilities and Samsung ment with Hakuhodo of Japan corps was recently organized, research results with other since 1973 and has a joint and it is involved in such proj- Korean hospitals to help ele- Human venture with Bozell USA. In ects as building public rest vate the nation’s medical pro- Resources early 1997, Cheil affiliated with rooms, helping needy families, fession as a whole. SMC is Hypernet, an internet advertis- promoting blood donation also training its staff and initiat- Development ing company, launching a new drives, sponsoring environ- ing research to contribute to a Center era of cyber-marketing in mental protection campaigns better quality of life for people The Samsung Human Korea. and anti-smoking drives, and everywhere. Resources Development Showcasing its integrated supporting social welfare Employees: 6,400 Center (HRDC) is responsible communications capabilities, institutions. Tel: (82) 2-3410-2114 for developing Samsung Cheil has won more than 70 Employees: 4,450 Fax: (82) 2-3410-3159 employees and fostering the international awards at Clio, 1996 Sales: $268.3 million Main Businesses: Samsung group’s corporate culture. The Cannes, New York Festival Tel: (82) 2-3670-8259 Medical Center (main hospital, HRDC runs a wide variety of and other world-renowned Fax: (82) 2-3670-8519 in Seoul), Kangbuk Samsung training programs at its five advertising competitions as Major Businesses: electronic Hospital (Seoul), Masan Korean training facilities: the well as many major Korean security services to include Samsung Hospital (Masan), main training center (Changjo advertising awards. local security systems, closed- Samsung Cheil Hospital Kwan), the live-in foreign lan- Employees: 1,100 circuit TV systems; security (Seoul), Samsung Bioscience guage training center (Ho-Am 1996 Billings: $1 billion system design, installation and Research Institute (Seoul) Kwan), the Global Tel: (82) 02-724-0250 consulting electronic surveil- Management Institute, the Fax: (82) 02-724-0191 lance systems Samsung Seoul Training Center and a Main Businesses: planning, Economic training cruiser, Dream 21. production and execution of Samsung Lions The training system is TV, radio, newspaper, maga- The Samsung Lions profes- Research designed to meet the needs of zine, outdoor and transit sional baseball team was orga- Institute employees as well as to imple- advertising; sales promotion; ment the Samsung corporate nized in 1982. It is franchised The Samsung Economic public relations; research; philosophy. Programs include in Taegu, the third largest city Research Institute (SERI) is corporate identity programs; basic training for new recruits, in Korea. the largest private institution of marketing and customized training to prepare employees The team has been a lead- its kind in Korea. SERI was services who have been promoted to ing influence in the develop- established in 1986 to support new levels of responsibility, ment of Korean professional the Samsung Group’s global and a course to prepare senior S1 Corporation baseball, capturing the Korean business activities and to managers to become CEOs in S1 Corporation was estab- championship in 1985. suggest economic policy the 21st century. lished in 1981 as Korea’s first The Lions Ballpark was strategies to the government Other courses prepare full-service security company completed in Kyungsan in for national and social employees to be more effec- and remains the nation’s 1995. The complex, Asia’s development. tive in the global arena and to biggest. largest baseball facility, The institute was recently cultivate job skills. HRDC also Operations now cover more includes an indoor practice reorganized into four main develops and promotes Web- than 250 Korean cities and facility that has a weight room, sections: a stronger policy based open courses, which towns, offering various kinds swimming pool and dormitory research unit, a domestic and allow more employees to use of protection to more than for team members. The home overseas macroeconomics re- time effectively. 100,000 customers. ballpark, located in Taegu, fea- search unit, a corporate man- Through these programs, S1 employs approximately tures an advanced electronic agement support research unit HRDC is laying the ground- 4,450 persons and has a fleet scoreboard, artificial turf and and an external relations unit. work for Samsung’s future of more than 500 emergency first-rate services for fans. Systematic research con- success by developing peo- dispatch vehicles. Using state- Employees: 60 ducted by SERI results in ple’s potential and creating of-the-art electronic systems 1996 Sales: $25 million theories that contribute to the competitiveness for the 21st and computer networks, the Tel: (82) 53-251-3114 nation as well as to its enter- century. company works to help elimi- Fax: (82) 53-251-3117 prises and people. Research Employees: 144 nate crime from society. Main Business: professional results are also shared widely Tel: (82) 335-20-1720 All employees (including baseball team, sports center among the general population. Fax: (82) 335-20-1001 administration) are required SERI supports those areas Main Activities: recruitment, to perform patrol duties regu- of society in greatest need, Samsung training and development larly and to meet directly with Medical Center as it carries out its mission customers to learn about the of contributing to social The Samsung Medical Center business. This first-hand expe- development. Samsung (SMC) is responsible for four rience enables S1 employees Top-notch personnel and an general hospitals (three in Advanced to provide faster, more respon- outstanding research infra- Seoul and one in Masan, sive solutions to customer structure provide the strength Institute of Korea) and a bioscience needs. for SERI to achieve its goals. research institute. SMC’s hos- Technology The Social System Employees: 169 pitals have a combined total of The Samsung Advanced Engineering Institute, S1’s Tel: (82) 2-3780-8000 2,600 beds, are staffed by Institute of Technology (SAIT) research and development Fax: (82) 2-3780-8005 first-class personnel and boast was established in October unit, was established in 1993, Main Activities: research state-of-the-art facilities such 1987. SAIT is Samsung’s main and was the first facility of its and policy development, kind in Korea. It is staffed by as a prescription order com- research institution, chartered munication system, picture to research technologies for archiving and communication 46-67 03.1.2 4:38 PM ù`64

the 21st century. In fulfillment and preserve lost parts of The Samsung Foundation of currently operates 36 childcare of that charter, the institute is Korea’s rich cultural heritage Culture is constantly preparing centers around Korea. now researching many “fron- and to rekindle popular inter- for the future. Its MAMPIST The foundation also runs tier technologies” in the fields est in this heritage. The foun- program, instituted in 1995, is the Samsung Center for Early of electronics, mechanical dation also supports a wide designed to educate young Education & Development, engineering, chemistry and life range of cultural activities to professionals who will lead which is responsible for sciences, which will contribute promote balanced develop- Korea’s cultural and artistic improving the quality of child- to the well-being of the global ment of the arts in Korea. activities. The Sejong Soloists, care available in Korea. This community within the next The Ho-Am Art Museum, consisting of Koreans who institution develops new pro- 10 years. opened in 1982, houses more have graduated from Juilliard grams and teaching aids for SAIT’s electronic research than 15,000 art objects and School of Music, actively hold use in the childcare centers. areas include exciting frontier historical relics, including 91 concerts around the world. It also offers ongoing training technologies such as informa- pieces that have been desig- The Musical Instruments Bank for childcare providers as well tion processing, systems and nated as either Cultural and Samsung Awards are as sponsors international aca- control, and materials. Treasures or National aimed at helping to cultivate demic seminars on childcare Breakthrough discoveries are Treasures by the Korean gov- young musical talent in Korea. and development. being made through research ernment. The museum holds In today’s age of globaliza- The Samsung Welfare on digital signal processing, international art exhibitions that tion, the Samsung Foundation Foundation selects outstand- digital communications and have been very well received of Culture has taken the lead ing programs provided by human and computer inter- by the Korean public. In May in offering people around the social welfare centers and face in the area of information 1997, the Hee Won Korean world a chance to see Korean related institutions and pro- processing and electro- Garden, which embodies the culture first hand. The founda- vides financial support for mechanics, microsystems, and aesthetic beauty of the tradition has opened the Samsung those programs. It also sends solid-state circuits for systems tional private garden in Korean Gallery at the Victoria & Albert social workers overseas for and control. high society, was opened on Museum in the U.K. It is also specialized training in the field, SAIT researches all of the the Ho-Am Art Museum supporting the opening of sponsors the youth volunteer core technologies in the area grounds. Korean Galleries at the Guimet corps “Purunnanum” and of materials. These include The Rodin Gallery is sched- Museum in France, the helps orphaned teenagers photonics, electronic materials, uled to open in April 1998 to Metropolitan Museum in the who must take care of their display materials and electro- give local art lovers easy U.S. and the British Museum. younger siblings. chemistry. The institute is also access to the works of the Meanwhile, the foundation has The foundation has formed studying simulations and ener- great master in downtown opened a studio for Korean the Ho-Am Prize Committee, gy in the area of mechanical Seoul. The Samsung Modern artists (at the International consisting of prominent social engineering. In chemistry, Art Museum, which will open Artists’ Village) in France, sup- leaders, to select candidates SAIT is researching break- in the year 2000, will be a ports a Korean Studies Forum for the annual Ho-Am Prize. through catalysts, polymers future-oriented showcase of in France and supports the The prize is given to individu- and organic synthesis/biotech- art and culture that is world- establishment of a Science als or groups who have made nology, which will be used class in both facilities and and Technology Center and outstanding contributions to widely in various aspects of scale. Samsung Art Gallery at the society in one of five cate- human life. The Samsung Foundation Guggenheim Museum in gories: basic science, engi- Life science research strives of Culture also supports the U.S. neering, medical science, to achieve breakthrough dis- academic research projects Employees: 190 social services or the arts. coveries in basic medicine, as well as various artistic and Tel: (82) 2-750-7850/9 The Samsung Group ini- clinical medicine and clinical cultural events. Fax: (82) 2-750-7827 tiated the Hyo-Haeng (Filial biomedical engineering. In Recently, the foundation Main Activities: Ho-Am Art Piety) Prize in 1976, and the so doing, SAIT is committed supported a project for log- Museum, Ho-Am Art Gallery, Samsung Welfare Foundation to enhancing the global com- ging the contents of the Samsung Modern Art manages this prize, which munity’s quality of life by Tripitaka Koreana (13th cen- Museum, Rodin Gallery, honors those who have exem- exploring the fundamental tury woodblock engravings of Samsung Children’s Museum, plified this virtue and seeks to principles behind biological the entire Buddhist canon) into Korean Traditional Music inspire others to do the same phenomenon. a computerized data base. The Contest, Samsung Prize for in a form befitting the modern SAIT strives to build a global Tripitaka Koreana was desig- Literature, MAMPIST Program, family structure. research organization in which nated as a “World Heritage” support for cultural and The Samsung Welfare a researcher can achieve his by Unesco in December 1995. artistic activities, support for Foundation will continue to or her best in the finest envi- In addition, the foundation academic research, construc- promote community service to ronment available, anywhere. has supported the publishing tion of museums enhance the group’s image as To achieve this goal, SAIT con- of the English edition of the a trustworthy and responsible tinues to localize and globalize Korean Literary Series, which Samsung corporate citizen. This is best research activities, coopera- covers topics from antiquity up achieved by returning some ting with universities and to the modern period. Welfare part of profits to society. research institutions overseas. Through its involvement in Foundation Employees: 41 Employees: 800 projects like these, the The Samsung Welfare Tel: (82) 2-259-7842/62 Tel: (82) 331-280-9114 Samsung Foundation of Foundation was established in Fax: (82) 2-259-7880 Fax: (82) 331-280-9099 Culture is helping to preserve 1989 to serve the community Main Activities: establishment Main Research Areas: informa- and propagate Korea’s rich and help create a society in and operation of childcare tion processing, system and cultural legacy around the which all people can live well. centers, support for social control, materials, mechanical world. The foundation helps children welfare program development, engineering, chemistry, life The foundation has taken and young adults develop into support for overseas training sciences advantage of its long experi- healthy, productive members for social workers, operation of ence in the arts to publish the of society through a wide vari- the youth volunteer corps Samsung Korean Artists Series and sup- ety of programs. For example, “Purunnanum,” support for Foundation ports Korean studies childcare is provided for the orphaned teenagers with projects as a part of long-term children of low-income families younger siblings to support of Culture plans for Korean involvement with working mothers to help Hyo-Haeng (Filial Piety) Prize, For more than 30 years, in the world. the next generation escape Ho-Am Prize the Samsung Foundation of the cycle of poverty. The Culture has worked to uncover Samsung Welfare Foundation 46-67 03.1.2 4:38 PM ù`65

Where to Find Us: 65 A complete listing of Samsung ofﬁces and locations around the world.

Lux Co., Ltd. Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics Tel: 81-3-5462-0401 New Delhi Office Mexico (SEM) Jeddah Office Manufacturing (UK) Moscow Office Fax: 81-3-5462-0404 Tel: 91-11-372-0340 Tel: 52-5-686-0800 Tel: 966-2-657-1243 Ltd. (SEMUK) (Telecom Systems Fax: 91-11-375-5390 Fax: 52-5-686-5094 Fax: 966-2-657-1260 Tel: 44-1740-665091 Business) Southeast Asia Fax: 44-1740-661022 Tel: 7-502-213-9165 Headquarters North America Samsung Mexicana Samsung Electronics Fax: 7-502-213-9175 Tel: 65-420-8100 Headquarters S.A. (SAMEX) Karachi Office Samsung Electronics EELECTRONICS Fax: 65-227-9662 Tel: 201-229-7015 Tel: 619-671-6136 Tel: 92-21-453-8354 (SEN) Samsung Crosna Fax: 201-229-7000 Fax: 619-671-6794 Fax: 92-21-454-5215 Tel: 31-70-307-2910 Telecommunications Samsung Samsung Asia PTE Fax: 31-70-319-4642 (SCT) Electronics Co. Ltd. (SAPL) Samsung Electronics Latin America Samsung Electronics Tel: 7-502-213-9165-6 Tel: 65-535-3075 America (SEA) Headquarters Kuwait Office Samsung Electronics Fax: 7-502-213-9175 China Headquarters Fax: 65-420-8121 Tel: 201-229-4000 Tel: 305-594-2758 Tel: 965-245-6415 Portuguesa S.A. Tel: 86-10-505-0247 Fax: 201-229-4110 Fax: 305-471-2143 Fax: 965-244-3057 (SEP) Dagestan Cellular Fax: 86-10-505-1663 Samsung Electronics Tel: 351-1-414-8100 Network (DCN) Asia Service PTE Samsung Samsung Electronics Samsung Electronics Fax: 351-1-414-8128 Tel: 7-095-979-5433 Samsung Electronics Tel: 65-535-3075 Semiconductor (SSI) da Amazonia Ltd. Tehran Office Fax: 7-095-979-5433 China Regional HQ Fax: 65-420-8121 Tel: 408-954-7000 (SEDA) Tel: 98-21-871-3441 Samsung Electronics Tel: 86-22-2330-4993 Fax: 408-954-7875 Tel: 55-11-237-5202 Fax: 98-21-871-3276 Polska Sp. Z.O.O. Samsung Research Fax: 86-22-2330-5992 Samsung Vina Fax: 55-11-237-5493 (SEPOL) Center (SRC) Electronics Samsung Samsung Europe Tel: 48-22-608-4405 Tel: 7-502-213-9192 Samsung Electronics (SAVINA) Telecommunication Samsung Electronics Plc Headquarters Fax: 48-22-608-4401 Fax: 7-502-213-9195 HK (SEHK) Tel: 84-8-896-5500 America (STA) Panama Tel: 44-181-380-7052 Tel: 852-2862-6319 Fax: 84-8-896-5566 Tel: 305-592-2900 (Zona Libre) S.A. Fax: 44-181-380-7002 Samsung Electrónica Samsung Technology Fax: 852-2866-1316 Fax: 305-592-5847 Tel: 507-269-6827 Española S.A. (SESA) Rep. Office Tel: Samsung Electronics Fax: 507-269-3850 Semiconductor Tel: 34-3-862-9600 7-502-213-9206 Samsung Electronics Seremban Complex Samsung Information Division (SEPLC) Fax: 34-3-862-9648 Fax: 7-502-213-9162 Taiwan (SET) Tel: 60-6-6776-153 Systems America Samsung Electronics Tel: 44-181-380-7162 Tel: 886-2-757-7292 Fax: 60-6-6776-164 (SISA) Buenos Aires Office Fax: 44-181-380-7220 Samsung Electronics Samsung Electronics Fax: 886-2-757-7311 Tel: 408-232-3741 Tel: 54-1-312-9438 Svenska AB (SESAB) Vladivostok Office Samsung Fax: 408-434-5447 Fax: 54-1-312-5199 Samsung Electronics Tel: 46-8-590-966-00 Tel: 7-4232-40-7714 Huizhou Samsung Electronics Display Product Planning & Fax: 46-8-590-966-50 Fax: 7-4232-40-7713 Electronics (SEHZ) (M) Sdn. Bhd. Control Automation Samsung Electronics Design Tel: 86-752-332-1410 (SDMA) Inc. (CAI) Bogotá Office (MKTG Center) Samsung Electronics Samsung Electronics Fax: 86-752-332-1397 Tel: 60-6-678-7914 Tel: 407-676-3222 Tel: 571-312-1762 Tel: 44-181-380-7104 (UK) Ltd. (SEUK) Almaty Office Fax: 60-6-678-7389 Fax: 407-723-4388 Fax: 571-312-1968 Fax: 44-181-380-7108 Tel: 44-181-391-8213 Tel: 7-3272-205-536 Suzhou Samsung Fax: 44-181-974-2300 Fax: 7-3272-201-238 Electronics (SSEC) Samsung Electronics Samsung Electronics Samsung Electronics Samsung Electronics N.Y. Office–US SBT Tel: 86-512-532-1401 Australia PTY. (SEAU) Miami Office Research Center Samsung Samsung Electronics Tel: 201-229-4152 Fax: 86-512-532-1401 Tel: 61-2-9638-5200 Tel: 305-477-6550 (SERI) Semiconductor St. Petersburg Office Fax: 61-2-9684-4084 Fax: 201-229-4177 Fax: 305-471-9666 Tel: 44-181-391-8331 Europe GmbH Tel: 7-502-201-5029 Shandong Samsung Fax: 44-181-391-8248 (SSEG) Fax: 7-502-201-5036 Samsung Electronics Telecommunications Samsung Electronics Samsung Electronics Tel: 49-6196-663-300 Louisville Office (SST) (M) Sdn. Bhd. Santiago Office Samsung Electronics Fax: 49-6196-663-366 Samsung Electronics Tel: 502-425-4342 Tel: 86-896-562-6868 (SEMA) Tel: 56-2-233-6963 EURO Q.A. Lab. Kiev Office (SEKO) Fax: 502-425-4814 Fax: 86-896-562-6767 Tel: 60-3-376-1068 Fax: 56-2-233-6973 Tel: 49-6171-708-141 Texas Instrument Tel: 380-44-246-5574 Fax: 62-3-376-3461 Fax: 49-6171-74507 Samsung Fax: 380-44-230-2991-2 Samsung Electronics Tianjin Samsung Samsung Chile Electrónica Portugal L.A. Office–US SBT Electronics (TSEC) Samsung Metrodata Holding Ltda. IPO Division (TI SEP) Samsung Tel: 310-537-7000 Tel: 86-22-532-3715 Distribution (SMD) (ENTEL) Tel: 44-181-391-0168 Tel: 351-2-944-1500 Display Devices Fax: 310-537-1300 Fax: 86-22-532-3714 Tel: 62-21-526-0755 Tel: 56-2-206-6237 Fax: 44-181-974-2784 Fax: 351-2-944-1694 Co., Ltd. Fax: 62-21-526-0752 Fax: 56-2-206-5943 Samsung Electronics Tianjin Tong Guang Samsung Electronics Samsung Electronics Samsung Display Dallas Office–US SBT Samsung Electronics P.T. Samsung Middle East EURO Service Center Brussels Office Devices Malaysia Sdn. Tel: 214-484-6004 (TTSEC) Metrodata Electronics Headquarters Tel: 44-1952-207-126 Tel: 32-2-649-0402 Bhd Fax: 214-484-6007 Tel: 86-22-2628-0629 (SME) Tel: 971-4-222966 Fax: 44-1952-293-459 Fax: 32-2-649-0481 Tel: (60)6-670-1020 Fax: 86-22-2628-4680 Tel: 62-21-893-4005 Fax: 971-4-282802 Fax: (60)6-677-6164- Fax: 62-21-893-4273 Information Products Samsung Electronics Samsung Electronics 7 Business Team– Samsung Electronics Samsung Gulf (UK), Service & Bucharest Office Santa Clara Office Beijing Office P.T. Samsung Electronics, Distribution Tel: 40-1-223-4719 Samsung Tel: 408-434-5436 Tel: 86-10-6510-1234 Maspion Indonesia FZE (SGE) Tel: 44-1952-207-141 Fax: 40-1-223-4721 Elektronische Fax: 408-943-0462 Fax: 86-10-6510-1545 (SMI) Tel: 971-4-837700 Fax: 44-1952-292-033 Bauelemente GmbH Tel: 62-31-896-2671 Fax: 971-4-837710 Samsung Electronics Tel: (49)30-6952-3908 Information Products Samsung Electronics Fax: 62-31-896-2566 Samsung Calex Prague Office Fax: (49)30-685-9281 Business Team– Chengdu Office Samsung Electronics Spol.S.R.O. (SCC) Tel: 420-2436-2740 N.Y. Office Tel: 86-28-678-3802 Thai-Samsung South Africa (PTY) Tel: 42-814-502-1001 Fax: 422-2436-3438 Samsung Display Tel: 201-229-4252 Fax: 86-28-678-3808 Electronics Office Ltd. (SSA) Fax: 42-814-502-3003 Mexicana S.A. (TSE) Fax: 201-229-4177 Tel: 27-11-463-5678 Samsung Electronics Tel: (52)66-27-6220 Samsung Electronics Tel: 66-38-480-065 Fax: 27-11-463-5214 Samsung Electronica Rotterdam Office Fax: (1)619-661-0503 Information Products Guangzhou Office Fax: 66-38-480-271 Comercial Iberica, Tel: 31-70-307-2919 Business Team– Tel: 86-20-331-3651 Samsung Electronics S.A. (SECOSA) Fax: 31-70-395-0176 Samsung Display Dallas Office Fax: 86-20-331-3650 Samsung India Ticaret A.S. (SETAS) Tel: 34-3-261-6723 Devices Electronics Limited Tel: 214-484-6004 Tel: 902-32-376-7330 Fax: 34-3-261-6750 Samsung Electronics do Brasil Ltda. Fax: 214-484-6007 Samsung Electronics (SIEL) Fax: 902-32-376-7336 Vienna Office Tel: (55)92-633-4686 Shanghai Office Tel: 91-11-692-8383 Samsung Electronics Tel: 43-1-516-150 Fax: (55)92-233-1068 Samsung Austin Tel: 86-21-6270-0662 Fax: 91-11-692-9757 Samsung Electronics France S.A. (SEF) Fax: 43-1-516-1520 Semiconductor Inc. Fax: 86-21-6270-0663 Amman Office Tel: 33-1-4938-4819 Samsung Display Samsung Tel: 512-338-8495 Tel: 962-6-846050 Fax: 33-1-4863-7183 Samsung Electronics Devices Inc. Fax: 512-338-8451 Samsung Electronics Electronics India Fax: 962-6-846094 Suomi Oy Tel: (1)310-537-7000 Shenyang Office Software Operations Samsung Electronics Tel: 358-0-525-9520 Fax: (1)310-537-1003 Information Products Tel: 86-24-279-1331 (SISO) Samsung Electronics GmbH (SEG) Fax: 358-0-525-91952 Tel: 91-80-555-0555 Business Team– Fax: 86-24-279-1330 Abidjan Office Tel: 49-6196-582-555 Samsung Fax: 91-80-555-0557 Houston Office Tel: 225-21-47-10 Fax: 49-6196-582-889 CIS Headquarters Display Devices Tel: 713-970-0996 Samsung Electronics Fax: 225-21-47-11 Moscow, Russia (Hong Kong) Co., Ltd. Samsung Electronics Fax: 713-970-0998 Taipei Office Samsung Electronics Tel: 7-502-213-9202 Tel: (852)2-862-6058 Hanoi Office Tel: 886-2-728-8431 Samsung Electronics Hungarian (SEH) Fax: 7-502-213-9205 Fax: (852)2-845-2548 Tel: 84-4-826-1971 Samsung Electronics Fax: 886-2-757-7286 Cairo Office Tel: 36-1-250-23-11 Fax: 84-4-826-1973 Washington D.C. Tel: 202-336-1247 Fax: 36-1-168-94-53 Samsung Electronics Shenzhen Office Japan Headquarters Fax: 202-336-1248 Moscow Office Samsung Display Samsung Electronics Tel: 202-887-5661 Tel: 81-3-5641-9830 Samsung Electronica (SEMCO) Devices Co., Ltd. Kuala Lumpur Office Fax: 202-331-7961 Fax: 81-3-5641-9821 Samsung Electronics Italia S.P.A. (SEI) Tel: 7-502-213-9150 Tel: (86)755-335-7000 Tel: 60-3-263-2967-8 Casablanca Office Tel: 39-2-92189-1 Fax: 7-502-213-9162 (3131) Fax: 60-3-263-2970 Samsung Electronics Samsung Electronics Tel: 212-2-20-50-09 Fax: 39-2-92106-673 Fax: (86)755-336-7008 Canada (SECA) Osaka Office Fax: 212-2-20-45-38 JV Samsung Service Samsung Electronics Tel: 905-819-5046 Tel: 81-6-949-5130 Tel: 7-502-232-3188 Manila Office Fax: 905-542-0940 Fax: 81-6-949-5133 Samsung Electronics Fax: 7-502-224-5705 Tel: 63-2-526-2411 Istanbul Office Fax: 63-2-526-0920 Tel: 90-212-288-5638 Fax: 90-212-288-5657 46-67 03.1.2 4:38 PM ù`66

Tianjin Shanghai Office Union Optical Hong Kong Office Samsung Life Samsung Securities Samsung Display Tel: (86-21)6270-4168 Co. Ltd. Tel: 852-2862-6451 Insurance Co.,Ltd. (Europe) Ltd. Devices Co., Ltd. (Exc. 270) Tel: 81-3-3966-4274 Fax: 852-2862-6459 Hong Kong Tel: 44-171-786-7867 Tel: (86)22-2933-9971-5 Fax: (86-21)6275-2975 Fax: 81-3-3969-0825 Representative Office Fax: 44-171-786-7899 Fax: (86)22-2933-9984 Shanghai Office Tel: 852-2862-6033 Shenzhen Office TSOE Tel: 86-21-6275-9345 Fax: 852-2862-6481 Samsung Securities Tokyo Office Tel: (86-755)246-2080, (Tianjin Samsung Fax: 86-21-6275-9314 Tokyo Representative Tel: (81)3-5641-9875 2086 MMACHINERY Opto-Electronics) Samsung Fire & Office Fax: (81)3-5641-9876 Fax: (86-755)246-2089 Tel: 22-2761-9212 Samsung Marine Insurance Tel: 81-3-5641-9919 Samsung Fax: 22-2761-8864 Fine Chemicals Co., Ltd. Fax: 81-3-5641-9918 Osaka Office Hong Kong Office Heavy Industries Co., Ltd. Samsung Securities Tel: (81)6-949-4802 Tel: (852)2862-6331-2 Co., Ltd. Shanghai Office Samsung Hong Kong Fax: (81)6-949-5133 Fax: (852)2528-5920 Tel: 86-21-6219-6678 Tokyo Office Fire & Marine Ins. Representative Office Samsung Heavy Fax: 86-21-6275-1512 Tel: 81-3-5641-9893/4 Co., Ltd. U.S. Branch Tel: 852-2862-6420-1 Taipei Branch Sao Paulo Office Industries Fax: 81-3-5641-9897 Tel: 1-201-229-6011 Fax: 852-2862-6423 Tel: (886)2-728-8461 Tel: (55-11)247-5643, (Ningbo) Co., Ltd. Rollei Fototechnic Fax: 1-201-229-6015 Fax: (886)2-757-7035 5283, 523-5949 Tel: 86-574-622-2210 GmbH Fax: (55-11)523-6884 Fax: 86-574-622-4275 Tel: 531-6800-370 Samsung Fire & Beijing Office Fax: 49-531-6800-243 Marine Ins. Co., Ltd. Tel: (86)10-6510-1521 Kuala Lumpur Office Tokyo Office New York Fax: (86)10-6510-1540,1 Tel: (60-3)264-9129 Tel: 81-3-5641-9561-8 FFT Office Representative Office Fax: (60-3)262-6518 Fax: 81-3-5641-9560 Tel: 6196-667500 Tel: 1-201-229-6011 Samsung Fax: 6196-667566 Fax: 1-201-229-6015 Electro-Mechanics London Office Shanghai Office Co., Ltd. Tel: (44-181)380-7206-8 Tel: 86-21-6270-4168 Nouvelle Piquerez SA Samsung Fax: (44-181)380-7209 Fax: 86-21-6219-6456 Tel: 32-426-7967 FFINANCE Insurance Company Samsung of Europe Ltd. AAUTOMOTIVE Portugal Produtos Taipei Office Singapore Office SOA Samsung Life Tel: 41-171-786-7851 Eletro-Mecânicos S.A. Tel: (886-2)728-8450, Tel: 65-420-8362 (Samsung Opto- Insurance Co., Ltd. Fax: 44-171-786-7866 Samsung (SPEM) 8452-3 Fax: 65-221-8289 electronics America) Motors Inc. Tel: (351-1)924-8300 Fax: (886-2)757-7278 Tel: 201-902-0347 Samsung Samsung Fire & Fax: (351-1)924-8490 SHI Fax: 201-902-9342 Life Investment Marine Ins. Co., Ltd. Tokyo Office Bangkok Office Australia Pty., Ltd. (America) Ltd. London Tel: 81-3-5641-9809 Samsung Tel: (662)661-8004-5 Tel: 61-2-9957-2411 L.A. Office Tel: 1-201-229-6090, Representative Office Fax: 81-3-5641-9827 Electro-Mechanics Fax: (662)661-8006 Fax: 61-2-9957-5231 Tel: 310-537-7000 6025 Tel: 44-171-786-7851 Thailand Co., Ltd. Fax: 310-537-1566 Fax: 1-201-229-6024 Fax: 44-171-786-7866 Detroit Office (SEMT) Istanbul Office SHI Tel: 1-810-353-3033 Tel: (66-38)570-191-6 Tel: (90-212)274-7818 (Thailand) Co., Ltd. SOM (Samsung Samsung Realty Samsung Fire & Fax: 1-818-353-1660 Fax: (66-38)570-258 Fax: (90-212)274-7838 Tel: 66-38-636529 Opto-electronics of America Ltd. Marine Ins. Co., Ltd. Fax: 66-38-636461 Mexicana) Tel: 1-201-229-6090, Japan Representative Frankfurt Office Dongguan Samsung Dublin Office Tel: 619-661-1591 6025,6080 Office Tel: 49-6196-669900 Electro-Mechanics Tel: (353-1)862-1688 London Office Fax: 619-661-1590 Fax: 1-201-229-6024 Tel: 81-3-5641-9556 Fax: 49-6196-669966 Co., Ltd. (DSEM) Fax: (353-1)862-1684 Tel: 44-181-862-9333 Fax: 81-3-5641-9557 Tel: (86-769)330-5000, Fax: 44-181-862-0006 MIPT Samsung Samsung Design 1240, 2580, 1111 New Delhi Office Tel: 7-095-485-4222 Life Agency Ltd. P.T. Asuransi America, Inc. Fax: (86-769)330-5001 Tel: (91-11)372-0340-2 Greece Office Tel: 1-201-229-6090, Samsung Tugu Tel: 1-714-899-2644 Fax: (91-11)375-5390 Tel: 30-1-4222-495/7 Singapore 6025,6080 Tel: 6221-574-0033 Fax: 1-714-899-2643 Tianjin Samsung Fax: 30-1-4222-491 Representative Office Fax: 1-201-229-6024 Fax: 6221-574-0055 Electro-Mechanics Samsung Tel: 65-420-8375/6 Co., Ltd. (TSEM) Corning Co., Ltd. Oslo Office Fax: 65-420-8379 New York Samsung Tel: (86-22)830-1307-9, Tel: 47-22-83-3777 Representative Office Fire & Marine Ins. 823-5241-2 Samsung Fax: 47-22-83-3778 Samsung Tel: 1-201-229-6025 Co., Ltd. Hanoi Fax: (86-22)830-7436, Corning Malaysia Opto-Electronics Fax: 1-201-229-6024 Representative Office 823-5243 SDN., BHD. Frankfurt Office do Brasil Tel: 84-4-934-0303 Tel: 606-677-9700 Tel: 49-6196-667600 Tel: 55-11-541-8500 Samsung Fax: 84-4-934-0302 Samsung Fax: 606-677-7304 Fax: 49-6196-667666 ( -336) Life Investment Electro-Mecanico Fax: 55-11-246-3407, (UK) Ltd. Samsung Fire & Mexicana S.A de C.V. Samsung Corning SHI U.K. Ltd. 523-6884 Tel: 44-171-786-7812 Marine Ins. Co., Ltd. OOTHER (SEMSA) Deutschland GmbH Tel: 44-1423-868019 Fax: 44-171-786-7840 Ho Chi Minh COMPANIES Tel: (1-619)671-6400, Tel: 49-35600-34-417 Fax: 44-1423-866203 York Office Representative Office 6420, 6425 Fax: 49-35600-34-302 Tel: 1-717-352-8247 Samsung Tel: 84-8-8211978 Samsung Fax: (1-619)671-6408-9, New York Office Fax: 1-717-852-8529 Life Investment Fax: 84-8-8211996 Corporation 6461 Tianjin Samsung Tel: 1-201-229-6026 (Jersey) Ltd. Corning Co., Ltd. Fax: 1-201-229-6029 Hartford Office Tel: 44-171-786-7813 Samsung Fire & Samsung Samsung Tel :86-22-632-1943 Tel: 1-203-565-0776 Fax: 44-171-786-7840 Marine Ins. Co., Ltd. America Inc. Electro-Mechanics Fax: 86-22-633-0557 L.A. Office Fax: 1-203-557-1338 Beijing Representative Tel: 1-201-229-5000 America, Inc. Tel: 1-310-802-7003 Samsung Office Fax: 1-201-229-5080 Tel: (1-408)954-7411-8, San Diego Office Fax: 1-310-802-0796 Fort Worth Office Life Insurance Co. Tel: 86-10-6510-1517 7420-1 Tel: 1-619-687-0260 Tel: 1-817-777-5886/ London Fax: 86-10-6510-1551 S.A.I. Houston Office Fax: (1-408)954-7429 Fax: 1-619-687-0259 Samsung 4273 Representative Office Tel: 1-713-953-9700 Construction Fax: 1-203-557-1338 Tel: 44-171-786-7812 Samsung Fire & Fax: 1-713-953-9911 Samsung Tokyo Office Equipment Co. Fax: 44-171-786-7840 Marine Ins. Co., Ltd. Asia Pte., Ltd. Tel: 81-3-5641-9880 Tel: 1-847-806-9554 Samsung Shanghai S.A.I. L.A. Office (Electro-Mechanics Fax: 81-3-5641-9881 Fax: 1-847-806-9154/5 Watch Co., Ltd. Samsung Representative Office Tel: 1-562-802-2211 Division) Life Insurance Japan Tel: 86-21-6295-4800 Fax: 1-562-802-3011 Tel: (65)420-8201-4 Hong Kong Office Dubai Office Hong Kong Office Representative Office Fax: 86-21-6295-5280 Fax: (65)225-6598 Tel: 852-2862-6099 Tel: 971-4-71-5121 Tel: 852-862-6976/8 Tel: 81-3-5641-9581-2 Samsung Pacific Fax: 852-2529-1695 Fax: 971-4-71-5424 Fax: 852-529-4009 Fax: 81-3-5641-9580 Samsung Construction Samsung Card Co., Ltd. Tel: 1-310-407-1862 Electro-Mechanics Samsung Paris Office Swiss Office Samsung Life Fax: 1-310-407-1864 GmbH. SDS Co., Ltd. Tel: 33-1-3429-9013 Tel: 41-66-5679-67 Insurance Co.,Ltd. Samsung Card Tel: (49-6196)66-7700, Fax: 33-1-3429-9266 Fax: 41-66-5681-75 Singapore New York S.A.I. 7000, 7200 Samsung Representative Office Representative Office Santa Clara Office Fax: (49-6196)66-7766 Data Systems Samsung Tel: 65-4208-410 Tel: 1-201-807-6771 Tel: 1-408-434-5665 America, Inc. Construction Fax: 65-225-1983 Fax: 1-201-229-5014 Fax: 1-408-434-5666 Tokyo Office Tel: 1-408-434-5407 Equipment Tel: (81-3)5641-9870 Fax: 1-408-434-5303 Europe B.V. Samsung Life Samsung Card Tokyo S.A.I. Seattle Office Fax: (81-3)5641-9871 Tel: 31-36-536-7770 Insurance Co.,Ltd. Representative Office Tel: 1-206-646-6336 Samsung Fax: 31-36-536-0970 Beijing Representative Tel: 81-3-5641-9700 Fax: 1-206-646-9538 Osaka Office SDS Co., Ltd. Office Fax: 81-3-5641-9703 Tel: (81-6)949-5132 Tokyo Office Samsung Tel: 86-10-6510-5516 Canada Fax: (81-6)949-3047 Tel: 81-3-5641-9824 C Fax: 86-10-6510-1551 Samsung Aerospace Trade Group Inc. Fax: 81-3-5641-9881 Co., Ltd. CHEMICALS Securities Tel: 1-514-866-4626 New Jersey Office Samsung Fax: 1-514-866-0913 Tel: (1-201)229-6092-4 Samsung SSA Tokyo Office Samsung General Properties China, Ltd. Samsung Securities Fax: (1-201)229-6096 SDS Co., Ltd. Tel: 81-3-5641-9721 Chemicals Co., Ltd. Tel: 852-2862-6033 New York Beijing Office Fax: 81-3-5641-9720 Fax: 852-2862-6481 Representative Office Beijing Office Tel: 86-10-6510-1234- Tokyo Office Tel: 1-201-229-5015 Tel: (86-10)6510-1520 230 Tel: 81-3-5641-9591 Fax: 1-201-229-5016 Fax: (86-10)6510-1548 Fax: 86-10-6510-1639 Fax: 81-3-5641-9594 46-67 03.1.2 4:38 PM ù`67

Samsung Finance Samsung Corp. Samsung Corporation Samsung (Malaysia) Samsung Corp. Cheil The Joong-Ang Ilbo Corporation Istanbul Office Taipei Branch SDN BHD. Tehran Office Industries Inc. Tel: 84-7-806-0010 Tel: 90-211-273-1053 Tel: 886-2-728-8500 Tel: 60-3-261-5133 Tel: 98-21-871-6589 American Fax: 84-7-806-0305 Fax: 90-212-275-0602 Fax: 886-2-758-3172 Fax: 60-3-261-5907 Fax: 98-21-871-5866 Modaprima Headquarters Italiana S.R.L. Tel: 1-202-347-0121 Samsung, Samsung Corp. Engineering & Engineering & Samsung Corp. Tel: 39-2-2479-121 Fax: 1-202-628-2719 America Inc. Warsaw Office Construction Construction Kuwait Office Fax: 39-2-2479-1205 Oficina de sin Tel: 48-22-608-4500 Tel: 886-2-731-7882 Tel: 60-3-262-4735 Tel: 965-241-6632 The Joong-Ang Ilbo Ingresos en la Fax: 48-22-608-4505 Fax: 886-2-731-7865 Fax: 60-3-262-4761 Fax: 965-246-6850 Modaprima Cal., lnc. Rep. Mexico America Inc. Tel: 1-213-368-2500 Tel: 52-5-280-3818 Samsung Samsung Corp. Samsung Corp. Samsung Corp. Tel: 1-212-399-1300 Fax: 1-213-389-6196 Fax: 52-5-280-3811 Geneva Office Beijing Office Jakarta Office Riyadh Office Fax: 1-212-247-3737 Tel: 41-22-788-4414 Tel: 86-10-6510-1234 Tel: 62-21-571-3201 Tel: 966-1-479-2378 The Joong-Ang Ilbo Samsung America Fax: 41-22-788-4415 Fax: 86-10-6510-1547 (9 Line) Fax: 966-1-479-2281 Associated Wool New York, Inc. Inc., (Panama) Fax: 62-21-571-3243/4 Exporters’ PTY., Ltd. Tel: 1-718-361-7700 Tel: 50-7-269-3533 Samsung Corp. Samsung Corp. Samsung Corp. Tel: 61-2-9235-3332 Fax: 1-718-361-8891 Fax: 50-7-269-3067 Moscow Office Shanghai Office Engineering & Jeddah Office Fax: 61-2-9235-3294 Tel: 7-095-967-0491 Tel: 86-21-6270-4168 Construction Tel: 966-2-6443843 The Joong-Ang Ilbo Bogotá Fax: 7-095-967-0489 Fax: 86-21-6275-0823 Tel: 62-21-571-3674 Fax: 966-2-6431813 Tianjin Samsung Chicago, Inc. Representative Office Fax: 62-21-571-3680 Wool Textile Co., Ltd. Tel: 1-312-583-2770 Tel: 57-1-618-4528 Engineering & Engineering & Samsung Corp. Tel: 86-22-2851-4771/8 Fax: 1-312-583-9626 Fax: 57-1-618-4635 Construction Construction Samsung Corp. Dammam Office Fax: 86-22-2851-4779 Tel: 7-095-916-0325 Tel: 86-21-6270-4168 Bangkok Office Tel: 966-3-833-0447 Japan Headquarters Lima Office Fax: 7-095-916-0390 Fax: 86-21-6275-2979 Tel: 66-2-264-0527 Fax: 966-3-834-9151 Tianjin Samsung Tel: 81-3-3503-0022 Tel: 51-1-440-5643 Fax: 66-2-264-0530 Fashion Co., Ltd. Fax: 81-3-3503-0021 Fax: 51-1-440-4470 Samsung Corp. Samsung Corp. Samsung Corp. Tel: 86-22-2763-3071/8 Almaty Office Dalian Office Engineering & Amman Office Fax: 86-22-2763-3079 Cheil Santiago Office Tel: 7-3272-69-2602 Tel: 86-411-360-7700 Construction Tel: 96-26-61-3565 Communication Tel: 56-2-234-1616 Fax: 7-3272-63-5822 Fax: 86-411-360-7722 Tel: 66-2-264-0542 Fax: 96-26-62-9591 Hong Kong Office Inc. Fax: 56-2-234-4744 Fax: 66-2-264-0548 Tel: 8522-862-6989 Samsung Corp. Samsung Corp. Samsung Corp. Fax: 8522-528-6220 CheiI Communication Samsung Tashkent Office Qingdao Office Samsung Corp. Cairo Office America, Inc. do Brasil S/C Ltda. Tel: 7-3712-44-09-22 Tel: 86-532-287-2981 Manila Office Tel: 20-2-303-5063 Cheil Industries Inc. Tel: 1-201-229-6055 Tel: 55-11-287-5033 Fax: 7-3712-40-64-58 Fax: 86-532-287-2980 Tel: 63-2-815-2937 Fax: 20-2-303-5644 Shanghai Fax: 1-201-229-6058 Fax: 55-11-283-1846 Fax: 62-2-815-2936 Representative Office Khasco Co., Ltd Samsung Corp. Samsung Corp. Tel: 86-21-6275-8185,7 Los Angeles Office Buenos Aires Office Tel & Fax Gungzhou Office Star World Tripoli Office Fax: 86-21-6275-6882 Tel: 1-213-368-4211 Tel: 54-1-814-1148 *Satellite: Tel: 86-20-8331-3647 Corporation Ltd. Tel: 218-21-90-1023 Fax: 1-213-368-4220 Fax: 54-1-814-1596 7-50901-49004 Fax: 86-20-8331-1243 Tel: 63-2-843-9041 Fax: 218-21-90-1022 Tokyo Office *Local Line Fax: 63-2-819-5123 Tel: 81-3-5641-9576/8 Miami Office Samsung Using Time Samsung Samsung Fax: 81-3-5641-9579 Tel: 1-305-599-9367 Deutschland GmbH. Tel: 7-4212-399560/66 Tianjin Office Samsung Corp. (Nigeria) Co., Ltd Fax: 1-305-592-4293 Tel: (06196)665500 Tel: 86-22-2312-5964 Hanoi Office Tel: 234-1-261-5825 Design Studio (Tokyo) Fax: (06196)665566 Sofco Co., Ltd Fax: 86-22-2332-9907 Tel: 84-4-8251868 Fax: 234-1-261-5529 TeI:81-3-3409-8671/2 Tokyo Office Tel: 7-42366-40544 Fax: 84-4-8259277 Fax: 81-3-3409-8691 Tel: 81-3-5641-9573 Samsung U.K. Ltd. Fax: 7-42366-40429 Samsung Samsung Corp. Fax: 81-3-5641-9575 Tel: 44-181-862-9311 Shenzhen Office Engineering & Accra Office Frankfurt Office Fax: 44-181-569-7165 Samsung Kiev Office Tel: 86-755-2461-616 Construction Tel: 233-21-500526 Tel: 49-6196-667-400/1 Beijing Office Tel: 380-44-227-8241 Fax: 86-755-2461-699 Tel: 84-4-8229-983 Fax: 233-21-500529 Fax: 49-6196-667-466 Tel: 8610-6510-1522 Engineering & Fax: 380-44-227-8242 Fax: 84-4-8229-996 Fax: 8610-6510-1548 Construction Samsung Samsung SA Sydney Office Tel: 44-181-232-3321 Samsung Shantou Office Giang Vo (PTY) Ltd. Tel: 61-2-9233-8135 Hong Kong Office Fax: 44-181-862-0077 Japan Co., Ltd. Tel: 86-754-816-7366 Development Tel: 27-11-884-8746 Fax: 61-2-9235-3336 Tel: 852-2862-6410 Tel: 81-3-5641-9611 Fax: 86-754-846-9011 Co., Ltd. Fax: 27-11-884-6860 Fax: 852-2862-6414 Samsung Fax: 81-3-5641-9711 Tel: 84-4-220708 Los Angeles Office France S.A.R.L. Samsung Fax: 84-4-220695 Tel-Aviv Office Tel: 1-310-926-5520 Singapore Office Tel: 33-1-4279-2200 Engineering & Haikou Office Tel: 972-9-639-6106 Fax: 1-310-926-9930 Tel: 65-420-8152,8158 Fax: 33-1-4538-6858 Construction Tel: 86-898-676-9169 Samsung Corp. Fax: 972-9-639-6107 Fax: 65-222-6681 Tel: 81-3-5641-9587 Fax: 86-898-676-9170 Ho Chi Minh Office New York Office Samsung Italia S.R.L. Fax: 81-3-5641-9590 Tel: 84-8-823-1135 Samsung Tel: 1-212-399-1300 London Branch Tel: 39-2-2629-14202 Samsung Fax: 84-8-823-1138 Engineering Fax: 1-212-247-3737 Tel: 44-181-391-4550 Fax: 39-2-2622-3125 Samsung Chongqing Office Co., Ltd. Fax: 44-181-974-2540 Japan Corp. Tel: 86-23-6384-8368 Samsung Corp. Joong-Ang Samsung Corp. Osaka Branch Fax: 86-23-6384-6838 New Delhi Office Samsung Engineering Development Frankfurt Office Vienna Office Tel: 81-6-949-4803 Tel: 91-11-688-9147 ThaiIand Co., Ltd Co., Ltd. Tel: 49-6196-666700, Tel: 43-1-513-5052 Fax: 81-6-949-3036 Samsung Fax: 91-11-687-2533 Tel: 66-2-264-0524/5 10,20 Fax: 43-1-513-4969 Harbin Office Fax: 66-2-264-0526 L.A. Office Fax: 49-6196-666777 Engineering & Tel: 86-451-367-8516 Samsung Corp. Tel: 1-562-921-4060 Samsung Construction Fax: 86-451-365-8930 Mumbai Office Tokyo Office Fax: 1-562-921-0710 Moscow Office Zagreb Office Tel: 81-6-949-4221 Tel: 91-22-283-0685 Tel: 81-3-5641-9597/8 Tel: 7-502-213-9250 Tel: 385-1-33-8850 Fax: 81-6-949-3034 Samsung Fax: 91-22-202-9189 Fax: 81-3-5641-9590 Tokyo Office Fax: 7-502-213-9252 Fax: 385-1-33-8846 Xiamen Office Tel: 81-3-5641-9586 Samsung Tel: 86-592-205-4504 Samsung Corp. Jakarta Office Fax: 81-3-5641-9997 Dubai Office Samsung Corp. Japan Corp. Fax: 86-592-212-3435 Dhaka Liaison Office Tel: 62-21-571-3219 Tel: 971-4-218891, Sofia-Post Office Fukuoka Branch Tel: 880-2-988-6527 Fax: 62-21-571-3221 The Shilla HoteIs & 222966 Tel: 35-9-971-3389 Tel: 81-30-475-7025 Erdsam Co., Ltd. Fax: 880-2-83-2981 Resorts Co., Ltd. Fax: 971-4-282802 Fax: 35-9-971-3385 Fax: 81-30-475-7002 Tel: 976-1-322-806 Beijing Office Fax: 976-1-311-422 Samsung Corp. Tel: 86-10-6510-1501 New York Office Samsung Corp. Samsung Yangon Office Fax: 86-10-6510-1551 Tel: 1-212-752-8625 Budapest Office Japan Corp. Samsung Asia Tel: 95-1-24-3607 Fax: 1-212-752-4738 Tel: 36-1-240-3672 Nagoya Branch PTE Ltd. Fax: 95-1-24-3981 Kuala Lumpur Office Fax: 36-1-240-3672 Tel: 81-52-563-3371 Tel: 65-533-3143 Tel: 603-262-0714 Tokyo Office Fax: 81-52-563-3373 Fax: 65-534-3429 Samsung Karachi Fax: 603-262-0907 Tel: 81-3-3586-7571 Samsung Corp. Liaison Office Fax: 81-3-3586-7360 Bucharest Office Samsung Engineering & Tel: 92-21-454-6318 Milan Office Tel: 40-1-223-2419 Hong Kong Limited Construction Fax: 92-21-454-5950 Tel: 39-2-2247-7880 GSA Germany Fax: 40-1-223-2422 Tel: 852-2862-6000 Tel: 65-420-8390 Fax: 39-2-2622-4723 Tel: 49-89-719-3811 Fax: 852-2862-6399 Fax: 65-538-3779 Samsung Colombo Fax: 49-89-719-2382 Samsung Corp. Liaison Office Houston Office Praha Office Engineering & Samsung Tel: 94-1-43-7032 Tel: 281-290-0778 GSA London Tel: 420-2-570-16-600 Construction (Aust) PTY. Ltd. Fax: 94-1-43-7035 Fax: 281-290-0779 Tel: 44-181-742-8899 Fax: 420-2-570-16-603 Tel: 852-2862-6455 Tel: 61-2-9957-5655 Fax: 44-181-742-2222 Fax: 852-2862-6469 Fax: 61-2-9929-6208 Dubai Samsung Samsung Corp. Corporation PR Representative Madrid Office Samsung Tel: 971-4-22-9634 in Hong Kong Tel: 34-1-319-3737 Development Fax: 971-4-22-9455 Tel: 852-2810-0532 Fax: 34-1-308-0119 (Aust) PTY. Ltd. Fax: 852-2525-7972 Tel: 61-2-9964-9488 Fax: 61-2-9964-9540 68-73 03.1.2 4:41 PM ù`1

The R e 68-73 03.1.2 4:41 PM ù`2

esults 68-73 03.1.2 4:41 PM ù `3

INTRODUCTION TO FINANCIAL DATA THE SAMSUNG GROUP

100 4000 100 40

3500 35 80

80 3000 30

60 2500 25 60

2000 20

40 40 1500 15

10 1000 20 20

5 500

0 0 0 0

300

250

200

150

100

5 50

0 0

*Samsung Automotive Subgroup was formed in 1997. Samsung Commercial Vehicles was previously part of Samsung Heavy Industries, and its 1996 sales are included in our Machinery Subgroup. 68-73 03.1.2 4:41 PM ù `4

COMBINED BALANCE SHEET THE SAMSUNG GROUP

WON WON US DOLLARS ECU MILLIONS MILLIONS THOUSANDS THOUSANDS AT YEAR-END 1995 1996 1996 1996

Current assets Cash and bank deposits 3,966,210 4,759,148 5,638,801 4,516,680 Marketable securities 8,431,036 11,700,785 13,863,489 11,104,655 Notes receivable and accounts receivable 4,822,651 6,232,989 7,385,058 5,915,432 Inventories 4,245,828 4,631,734 5,487,836 4,395,756 Other 20,966,375 22,660,715 26,849,189 21,506,200 Total current assets 42,432,100 49,985,371 59,224,373 47,438,723 Investments 7,531,026 9,788,900 11,598,223 9,290,176 Non-current assets Less accumulated depreciation of land 3,179,946 4,242,812 5,027,028 4,026,650 Buildings and structures 4,373,387 5,606,809 6,643,139 5,321,154 Machinery and equipment 5,993,259 6,241,383 7,395,004 5,923,398 Construction in progress 2,809,290 5,611,046 6,648,159 5,325,175 Other 554,313 1,029,778 1,220,115 977,313 Total non-current assets 16,910,195 22,731,828 26,933,445 21,573,690 Other assets 359,181 566,497 671,205 537,635 Total 67,232,502 83,072,596 98,427,246 78,840,224

Current liabilities Notes payable 828,157 1,077,841 1,277,063 1,022,927 Trade accounts payable 1,677,186 2,143,532 2,539,730 2,034,324 Short-term loans 6,074,671 9,393,992 11,130,322 8,915,388 Current portion of long-term debt 24,667,546 29,478,831 34,927,525 27,976,947 Advances from customers 1,495,624 1,344,170 1,592,618 1,275,687 Other 5,824,611 5,532,457 6,555,044 5,250,591 Total current liabilities 40,567,795 48,970,823 58,022,302 46,475,864 Non-current liabilities Debentures 4,180,990 7,011,518 8,307,486 6,654,296 Long-term debt 5,253,172 7,824,322 9,270,524 7,425,689 Reserves 1,574,014 1,970,634 2,334,874 1,870,234 Other 2,636,255 3,772,250 4,469,490 3,580,063 Total non-current liabilities 13,644,431 20,578,724 24,382,374 19,530,282 Stockholders’ equity Capital stock 3,095,616 4,008,286 4,749,154 3,804,072 Capital surplus 4,559,036 4,891,733 5,795,892 4,642,510 Retained earnings 5,458,107 5,299,617 6,279,167 5,029,613 Capital adjustment (92,483) (676,587) (801,643) (642,115) Total stockholders’ equity 13,020,276 13,523,049 16,022,570 12,834,078 Total 67,232,502 83,072,596 98,427,246 78,840,224 68-73 03.1.2 4:41 PM ù `5

COMBINED STATEMENT OF INCOME THE SAMSUNG GROUP

WON WON US DOLLARS ECU MILLIONS MILLIONS THOUSANDS THOUSANDS FOR THE YEAR 1995 1996 1996 1996

Income Net sales 64,576,873 74,640,688 92,721,351 74,269,803 Domestic 34,146,954 45,616,251 56,666,150 45,389,586 Export 30,429,919 29,024,437 36,055,201 28,880,217 Other income 1,149,446 1,555,606 1,932,430 1,547,876 Total 65,726,319 76,196,294 94,653,781 75,817,679 Costs and expenses Operating cost 52,684,472 63,920,580 79,404,447 63,602,962 Selling and general administrative expense 6,334,160 7,721,101 9,591,430 7,682,735 Interest expense 1,273,390 1,752,505 2,177,025 1,743,797 Other expenses 1,898,537 2,527,407 3,139,636 2,514,849 Total 62,190,559 75,921,593 94,312,538 75,544,343 Income before taxes 3,535,760 274,701 341,243 273,336 Income taxes 602,937 142,907 177,524 142,197 Net income 2,932,823 131,794 163,719 131,139 68-73 03.1.2 4:41 PM ù `6

COMBINED STATEMENT OF CHANGES IN CASH FLOW THE SAMSUNG GROUP

WON WON US DOLLARS ECU MILLIONS MILLIONS THOUSANDS THOUSANDS AT YEAR-END 1995 1996 1996 1996

Cash flow due to operations 9,191,998 6,954,554 8,639,198 6,919,997 Net income per term 2,932,823 131,794 163,719 131,139 Increase in unpaid expenses 12,010,470 14,408,843 17,899,185 14,337,246 Deduction in non-received income (5,751,295) (7,586,083) (9,423,706) (7,548,388) Cash flow due to investments (13,729,063) (15,044,051) (18,688,262) (14,969,298) Cash receipts from investment activities 18,023,292 26,668,277 33,128,295 26,535,764 Reductions in current assets 14,560,320 21,554,248 26,775,463 21,447,146 Reductions in investments and other assets 3,286,605 4,435,025 5,509,348 4,412,988 Reductions in fixed assets 81,000 679,004 843,484 675,630 Reductions in deferred assets — — — — Cash outlays from investment activities 31,752,355 41,712,328 51,816,557 41,505,062 Increases in current assets 16,728,284 23,999,820 29,813,441 23,880,566 Increases in investments and other assets 7,556,588 7,178,469 8,917,353 7,142,800 Increases in fixed assets 6,511,460 9,348,371 11,612,883 9,301,919 Increases in deferred assets 956,023 1,185,668 1,472,880 1,179,777 Cash flow due to financing activities 5,868,552 8,667,260 10,766,783 8,624,193 Cash receipts from financing activities 34,065,214 50,181,444 62,337,198 49,932,095 Increases in current liability 27,054,829 41,214,136 51,197,684 41,009,345 Increase in long-term liabilities 5,297,566 7,765,490 9,646,571 7,726,904 Increase in capital 1,705,614 1,201,818 1,492,943 1,195,846 Other 7,205 — — — Cash outlays from financing activities 28,196,662 41,514,184 51,570,415 41,307,902 Increases in deferred assets 31,997 28,200 35,031 28,060 Reductions in current liabilities 27,655,626 40,660,279 50,509,663 40,458,240 Reductions in long-term liabilities 204,095 271,470 337,230 270,121 Dividend payments 139,695 196,010 243,491 195,036 Other 165,249 358,225 445,000 356,445 Increases in cash 1,331,487 577,763 717,719 574,892 Cash at the beginning of the term 2,918,657 4,324,684 5,372,278 4,303,195 Cash at the end of the term 4,250,144 4,902,447 6,089,997 4,878,087

Notes The combined financial statements have been prepared on the basis of financial statements from the 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. Won/U.S.$ exchange rate – W805/1: For sales and profits – W805/1 – was the yearly average. Other figures – W844/1 – was the rate as of the end of December,1996 ECU/U.S.$ exchange rate – .806/1 74-88 03.1.2 4:42 PM ù`74

The Re w 74-88 03.1.2 4:42 PM ù`75

At Samsung, winning 75 is not about personal gain. It is about contributing to a better society, so all people can triumph. wards 74-88 03.1.2 4:42 PM ù`76

It struck hard on a cold Friday afternoon...

...in February 1997. Seismologists measured its magnitude at 5.5 on the Richter Scale, by no means the largest earthquake on record. But to the people of the largely rural communities of Ardabil in northwestern Iran, it felt like the end of the world. Over the following days, more than 300 aftershocks assaulted the region. Nearly 1,000 people died, 2,600 were injured and 36,000 were left homeless. According to local sources,an estimated110 villages were devastated by the earthquake, many in a snow-bound region near the Caspian Sea. For many people around the world, the tragedy was little more than a 30-second story on the evening news. Not to the staff of Samsung Electronics in Tehran. To help their neighbors,a group of Samsung employees assembled seven truckloads of clothes, food, tents and blankets. Then they drove their makeshift relief caravan across the snow-covered roads of northern Iran to deliver the goods personally to the residents of quake-torn Ardabil. Triumphs of human spirit – like the selﬂess compassion of our Tehran ofﬁce – are among Samsung’s most important business accomplishments. The true “reward” of managing a successful company is the ability to give back to the people and communities we serve. 74-88 03.1.2 4:42 PM ù`77

SAMSUNG AND SOCIETY. We regard social leadership as an important responsibility. In addition to our goal of becoming one of the world’s leading companies by creating superior products and services, our mission is to become a major contributor to a better global society in the 21st century. To guide this effort, we established a community relations department for the Samsung Group and each of its subsidiaries in 1995. Through these departments, Samsung sponsors a wide variety of programs for social welfare, culture and the arts, academics and education, environmental preservation, and employee volunteerism. In 1996, we contributed $341 million to community relations programs geared toward improving the lives of people all over the world. Some notable examples: • Our Hungarian office organized and sponsored the second annual Samsung Running Festival in 1996, attracting 230,000 people (more than 20 times the number that compete in the Boston Marathon) from 52 cities in nine Central European countries. • Samsung Electronics became an official sponsor of the Nobel Prize Series, and will develop a CD-ROM and Web site designed to increase awareness of the achievements of Nobel Laureates worldwide. Through this sponsorship, we hope to inspire others to work for “the greatest benefit to mankind.” • Our commitment to people in need is wide-ranging–from our Guide Dog School for the Blind, to the operation of two custom-designed factories for disabled workers, to the donation of microwave ovens to Housing Works, New York’s largest provider of cost-free housing and support for homeless people with AIDS. The Samsung Welfare Foundation operates 36 childcare centers throughout Korea to assist working mothers of low-income families. • We contribute to arts and culture through our support of gifted artists, sponsorship of film and other entertainment festivals, the development of prominent Korean Art Galleries at both London’s Victoria & Albert Museum and New York’s Metropolitan Museum, as well as providing assistance to hundreds of local and community programs. In April 1998, the Samsung Foundation of Culture will open the Rodin Gallery in downtown Seoul. The Foundation is also over- seeing the development of the Samsung Modern Art Museum, scheduled to open in 2000. • Twenty athletes at the 1996 Summer Olympic Games in Atlanta were members of Samsung-sponsored teams; four more olympians committed to join our teams in 1997 or 1998. Samsung Electronics has also announced it will be the worldwide wireless communications equipment partner of the 1998 Winter Olympic Games in Nagano, Japan, the 2000 Summer Olympic Games in Sydney, Australia, and the official partner of the Bangkok Asian Games in Thailand. • Samsung is dedicated to preserving the earth’s environment. In 1996, we doubled our investment in our Green Management program, through which we strive to minimize pollution-causing emissions and wastes, take responsibility for the full life cycle of products and operate all work sites in an eco-friendly manner. Samsung employees also participate in a broad range of volunteer preservation activities, including “Adopt a River” and other clean-up programs worldwide.

Why do we make these investments?

Samsung is not an island. We have important responsibilities to our customers, society and the environment everywhere in the world. The rewards from our activities are not ours to keep; they must be reinvested continuously in the people and communities we serve. This creates a cycle of mutual trust and respect, and a healthy environment in which both Samsung and our customers can live and prosper. 74-88 03.1.2 4:42 PM ù`78

Old friends

KASIH means “love” in Malaysian. It is also the name of a loving group of Samsung employees in Malaysia who volunteer their time to perform a broad range of community service activities. Nizam Bin Abd Hamid is one of these leaders of KASIH. Here, he visits with Kosar, an elderly woman with no family or relatives, at Seremban Old Folks Nursing Home. Nizam and a team of Samsung colleagues volunteered to brighten up the nursing home and paint a garden wall. The group also exchanged stories and dined with the residents, making many new friends. By contributing directly to the communities in which we work and live, Samsung is earning the trust and respect of people all over the world. 74-88 03.1.2 4:42 PM ù`79

79 74-88 03.1.2 4:42 PM ù`80 74-88 03.1.2 4:42 PM ù`81

Beautiful music

Ju-Young Oh was born in a small town near Korea’s southern coast. But today he is making a big name for himself by perform- ing with major orchestras all over the world. The 15-year-old violin virtuoso is one of the ﬁrst beneﬁciaries of the Samsung Foundation of Culture’s Musical Instruments Bank. The innovative program lends world-class instruments to world-class musicians, helping to advance their music and careers. Mr. Oh has also received a scholarship from the Samsung Entertainment Group in 1996 and the Samsung Award for talented young artists in 1997. He is a student of Hyo Kang, music director of the Sejong Soloists, a renowned young musicians’ group. Through our support of art and culture worldwide, Samsung is contributing to a richer and more balanced global society. 74-88 03.1.2 4:42 PM ù`82 74-88 03.1.2 4:42 PM ù`83

Captain Clean

The Han River flows for nearly 300 miles across South Korea, bisecting the city of Seoul. It has been the cradle of ancient cultures and a lifeforce for modern civilization. To help preserve this natural treasure, Samsung sponsors a fleet of five boats which cruises the Han River every day, removing refuse and other pollutants. Chang-Keun Yoon, one of the boat captains, takes great pride in his work, and revels in the growing number of people who enjoy the Han because of his efforts. To date, Samsung has invested more than $15 million in the Han River preservation project, including sponsorship of educational programs and recreational events. Thousands of Samsung employees also have voluntarily rolled up their sleeves to clean up portions of the river. 74-88 03.1.2 4:42 PM ù`84

Second sight

Byung-Ho Kim is a kind and determined man. An employee of Samsung Electronics for more than 10 years, Mr. Kim was diag- nosed in 1993 with uveitis, a degenerative eye disease. Two years later, he was declared legally blind. Undeterred by his con- dition, he taught himself how to use his computer to access the Internet and perform other everyday functions. Today, using equipment and facilities donated by Samsung, he volunteers his time to teach other blind individuals how to use the computer to enhance their lives. Mr. Kim’s guide dog, Gooseul, is a graduate of Samsung’s Guide Dog School, the only facility of its kind in Korea. 74-88 03.1.2 4:42 PM ù`85

85 74-88 03.1.2 4:42 PM ù`86 74-88 03.1.2 4:42 PM ù`87

Magic bus

Kyung-Soo Park, a wide-eyed fourth-grader at An-Chun Elementary School, wants to play with a computer. But neither his family nor his school can afford one. To help children like Kyung-Soo, we created the Samsung Mobile PC Center. The specially equipped bus, complete with 13 Samsung computers and monitors, travels throughout Korea, visiting poor areas and rural neighborhoods that might not otherwise have access to computer technology. The Mobile PC Center typically stays in one area for up to ﬁve days, providing free computer education and training to elementary school students and other interested people in the community. It’s a fun, hands-on experience which awakens minds of all ages to a world of new opportunities. The instructor for this “expedition” was Samsung employee, Sun-Hee Kim. 74-88 03.1.2 4:42 PM ù`88

Thank you. ú´`‚‚ ” 03.1.2 4:24 PM ù ` 4

All Samsung products and Published by: Printed by: Written by: Photographed by: Designed and services mentioned in this Office of the Executive Samsung Moonwha Frank J. Oswald Eric Myer Produced by: publication are the property Staff of the Samsung Group Printing Co. Addison of the Samsung Group in coordination with Seoul, Korea Covers New York Cheil Communications Inc. Photographed by: John Huet ú´`‚‚ ” 03.1.2 4:24 PM ù ` 1

http://www.samsung.com

Office of the Samsung Samsung Samsung Samsung Samsung Executive Staff Americas Europe Headquarters Asia Pte. Ltd. China Headquarters Japan Corporation 26th floor 105 Challenger Road Great West House 80 Robinson Road 15F, Tower 1, Bright 15F Hamacho Center Samsung Main Building Ridgefield Park, Great West Road No. 21-01 China Chang An Building, Building 250, 2-ga, New Jersey 07660 Brentford Singapore 068898 China 100005 2-31-1, Nihonbashi- Taepyung-ro, Chung-gu USA Middlesex TW8 9DQ Tel: 65-225-5868 Tel: 86-10-6510-1234 Hamacho Chuo-ku Seoul, South Korea Tel: 1-201-229-7000 UK Fax: 65-227-9662 Fax: 86-10-6510-1539 Tokyo 103 Japan Tel: 82-2-751-2082 Fax: 1-201-229-7030 Tel: 44-181-380-7000 Tel: 81-3-5641-9820 Fax: 82-2-751-2083 Fax: 44-181-380-7080 Fax: 81-3-5641-9821