Jong-yong Yun Vice Chairman & CEO of Samsung Electronics

Vice Chairman & CEO Jong-yong Yun, Samsung Electronics, has transformed Samsung Electronics from a manufacturing company selling low-price white household electric appliances to the world's most state-of-the-art enterprise in the eight years since he took up his post as CEO.

Fortune magazine in its August 9 issue of this year stated that Samsung Electronics has rapidly emerged as the largest semiconductor manufacturer in the world as a result of the company concentrating on cost reduction and investment under the leadership of Vice Chairman Yun and has become the most profitable electronics company, adding that today Samsung Electronics produces a dazzling range of household electric appliances such as TVs, cellular phones and DVDs.

Regarding in-house changes since the inauguration of Mr. Yun, a Samsung Electronics spokesperson pointed out, "When the company generated its largest profit in 1995 since being founded, poor performance soon resulted in the form lax after/service, ill-advised overseas investments, overcapitalization, and excessive expenditure."

In response to an emerging crisis, Samsung Electronics shed 23,000 employees, some 28% of its entire 83,000-workforce, and retrenched on nonessential expenditures to the tune of 1.5 trillion won annually.

In addition, the company disposed of 1.2 trillion won of non-profit assets such as real estate and loans to employees. The spokesperson added that Samsung Electronics has spun-off 120 business units and as a result of such bold moves, had overcome its crisis and risen to become a world-class company.

In an interview with The Korea IT Times, Vice Chairman Yun noted, "Samsung Electronics has grown approximately two-fold in terms of turnover and four-fold in terms of profit compared to five years ago, and six-times in terms of turnover and 10-fold in terms of profit compared to ten years ago."

He emphasized that Samsung Electronics celebrated its 35th anniversary this year at the same time it is marking its relaunch as a top-class corporation.

Compared with 1997 when Mr. Yun took up his new post, the company generated 29.3 trillion won in terms of a turnover in the first half of 2004 as compared to 18.5 trillion won in 1997; 24.0 trillion won in terms of exports as compared with 10.5 trillion won in 1997; and 6.27 trillion won in terms of net profit as compared with 0.12 trillion won in 1997.

Claims 16.71% of national exports

In cumulative exports, Samsung Electronics exceeded the $10-billion mark in 1994, $15 billion in 2000, $20 billion in 2001 and $25 billion last year in just 32 years since the company began exporting in 1972.

Samsung Electronics' contribution to national exports has been steadily increasing from 0.038% in 1972 to1.22% in 1980, 10.38% in 1994, 14.53% in 2002, and 16.71% during the second quarter of 2004.

The contribution of exports to Samsung Electronics' total turnover has also grown, from 13.6% in 1972 to 68.3% in 1994, 70.02% in 2002, and 82.78% by the second quarter of 2004.

The Vice Chairman pointed out, "The present time is actually the most dangerous for Samsung Electronics since we have incurred the enmity of corporations worldwide." He said that Samsung Electronics will maintain its position as a first-rate corporation by focusing on design, R&D and marketing.

Mr. Yun commented, "Samsung Electronics does not flaunt its success though it generated a net profit of $5.2 billion last year and right now is sitting on $10 billion in cash."

Samsung Electronics has been reinvesting in production lines to produce items such as flat screens, chips, cellular phones as well as other digital equipment on a scale and with an efficiency to ensure survival despite any dampening of demand.

Mr. Yun explained, "Samsung Electronics focuses on manufacturing technology and product development to gain price superiority over our competitors," mentioning the company's leadership in memory chips as well as LCDs.

Regarding the future of Samsung Electronics, Mr. Yun emphasized that the company aims to maintain its advance through building on its core competences, nurturing high-quality talent, and management innovation.

Samsung Electronics has also the most valuable IT brand, being valued at $70 billion with 26 of its products rated the best in their respective fields.

Mr. Yun stressed that Samsung Electronics' future thrust is toward products such as next-generation memory semiconductors including PRAM, FRAM, and MRAM, and next-generation complex chips, convergence phones, home networks, robotics, 4G-hand phones and mobile CPUs.

A leader of the "Digital Convergence Revolution"

Samsung Electronics is focusing its developmental effort on becoming a leader of the "Digital Convergence Revolution."

"Samsung Electronics will establish stable growth by securing and maintaining unbeatable competitiveness by grafting next-generation technology onto product groups such as semiconductors, TFT-LCDs, cellular phones, color monitors, digital TVs, printers and DVD players," said Mr. Yun.

Samsung Electronics strives to develop products that can create new markets and promote digital convergence between its 4 strategic businesses of home networks, mobile networks, office networks and core parts. For this purpose, Mr. Yun asserted that Samsung Electronics will concentrate nurturing outstanding talent, continuous process innovation, the creation of high value added and market-oriented global management. The company has cut the time required from new product design to product launch to 5 months on average compared to 14 months six years ago.

Currently, Samsung Electronics stresses swiftness and efficiency in its decision-making processes, aided by the company's Worldwide Trading Network (WTN) that enables efficient inter-subsidiary trading processes with real-time reporting among its 59 corporations around the world, and its Standardized Integrated Affairs Management System (SIMS).

archivist 다른기사 보기