The Korean Kid Who Created Samsung During A Time Of Great Struggle
Summary
TLDRThe video script narrates the rise of Samsung from a grocery trading company to a global tech giant. Founded by Lee Byung-chul, the company diversified into various products and industries, benefiting from South Korea's protectionist measures. Lee Kun-hee's leadership saw Samsung's foray into electronics and telecommunications, with the launch of the Galaxy S marking its smartphone era. Despite challenges, Samsung's focus on innovation led to its current status, with ongoing investments in AI and 5G technology, aiming to maintain its market edge.
Takeaways
- 😀 Samsung's success story began with its founder, Lee Byung-chul, who started the company as a grocery trading business during a period of Japanese colonization.
- 🏭 The company's name, 'Samsung', meaning 'three stars', was inspired by a Korean constellation and its folklore.
- 📈 Samsung's early success was in trading and later diversified into various industries, including sugar refining and food culture, becoming a leading brand in Korea.
- 🛠️ Samsung's expansion into electronics began in 1969 with partnerships and the production of various electronic devices, including TVs and calculators.
- 🚀 The company's entry into the telecommunications hardware sector in 1980 marked a significant shift towards technology and innovation.
- 📱 Samsung's first foray into mobile phones was challenging, with initial products facing quality issues and competition from established brands like Motorola.
- 🔄 A pivotal moment for Samsung was in 1995 when Lee Kun-hee, the third son of the founder, led a strategic shift towards investing in cutting-edge technology.
- 🌐 The launch of the Samsung Galaxy S in 2010 marked the company's entry into the smartphone market, which was well-received despite some initial criticisms.
- 📈 Samsung's continuous innovation and investment in technology led to the development of foldable smartphones and other advanced devices, solidifying its position in the tech industry.
- 🤖 The company's current focus includes artificial intelligence, with plans to invest heavily in AI and 5G technologies to enhance user experiences.
- 🏆 Despite recent challenges, including a scandal over app performance throttling and leadership succession issues, Samsung remains committed to innovation and growth.
Q & A
Who founded Samsung and what was the original business?
-Samsung was founded by Lee Byung-chul, who started the company as a grocery trading company named Samsung Trading Company, trading noodles and other consumer products.
What does the name 'Samsung' mean and what is its cultural significance?
-The name 'Samsung' means 'three stars' and is a reference to a Korean cultural understanding of a constellation, symbolizing a well-meaning dragon fighting against an evil one in Korean folklore.
Why did Lee Byung-chul relocate the headquarters of Samsung to Seoul in 1947?
-Lee Byung-chul relocated the headquarters to Seoul in 1947 due to the success of the company, which profited from the increased demand for essential goods during World War II.
What was the impact of the Korean War on Lee Byung-chul and Samsung?
-During the Korean War, Lee Byung-chul was forced to flee Seoul to Busan, where he focused on his sugar refinery business, Chil Jedong, and diversified Samsung into different product types.
How did Samsung diversify its business under Lee Byung-chul's leadership?
-Samsung diversified under Lee Byung-chul by establishing various businesses such as a sugar refinery, a woolen textile mill, and later, with the help of government protectionist measures, it expanded into banking, insurance, manufacturing, and other sectors.
What was the significance of Samsung's entry into the electronics sector in 1969?
-Samsung's entry into the electronics sector in 1969 marked its transformation into a technology-focused company, with divisions dedicated to electronics, semiconductors, and telecommunications, which would later become core to its success.
Who took over as the president of Samsung after Lee Byung-chul's death in 1987?
-Lee Byung-chul's third son, Lee Kun-hee, took over as the president of Samsung after his father's death in 1987.
What was the turning point for Samsung in the mobile phone market?
-The turning point for Samsung in the mobile phone market was in 1995 when the company decided to shift its focus to cutting-edge technology, leading to the development of high-quality products that eventually surpassed competitors like Sony.
What was the public's initial reaction to Samsung's first smartphone, the Galaxy S, released in June 2010?
-The Galaxy S was well received by the public, who compared it favorably to other popular Android-powered smartphones, and it was praised for its Super AMOLED display, although it faced criticism for its GPS features and performance over time.
What controversy did Samsung face regarding its Game Optimizing Service (GOS) and how did the company respond?
-Samsung faced a scandal when it was discovered that the GOS was slowing down the performance of over 10,000 apps on Galaxy devices. The company officially apologized for the issue with Samsung VC and CEO Koh Dong-jin assuring customers that they would listen more closely to prevent such issues in the future.
What is Samsung's current focus in terms of technological advancement and investment?
-Samsung's current focus is on advancing in the field of artificial intelligence and 5G technology. The company plans to invest $22 billion in cutting-edge technology by 2022 and hire 1,000 new scientists for AI-focused research facilities globally.
Outlines
📱 The Rise of Samsung: From Trading to Technology
This paragraph delves into the origins of Samsung and its founder, Lee Byung-chul. Born into a prosperous Korean yangban family during the annexation of Korea by Japan, Lee navigated the challenges of cultural assimilation and managed his family's properties. He later ventured into business, establishing the Samsung Trading Company, which capitalized on the demand for essential goods during World War II. The company's success led to its relocation to Seoul and diversification into various products, including sugar refining and other industries. Samsung's growth was facilitated by the protectionist measures of the Korean government, which helped it become a chaebol, or large domestic conglomerate. Lee Byung-chul's focus on industrialization and his grooming of his son, Lee Kun-hee, to take over the business marked the beginning of Samsung's journey towards becoming a global tech giant.
🚀 Samsung's Expansion into Electronics and Global Success
In the 1960s, Samsung made its foray into the electronics sector, starting with partnerships for manufacturing consumer goods like TVs and microwaves. The company quickly innovated and expanded its product range to include various electronics, such as transistor radios, black and white TVs, color TVs, refrigerators, calculators, and air conditioners. By 1978, Samsung had produced 5 million TVs, marking a significant milestone. The company's ventures into shipbuilding and telecommunications hardware further solidified its position. Despite initial struggles in the mobile phone market, Samsung's strategic decision to focus on cutting-edge technology led to its rise to the top of the industry. The launch of the Samsung Galaxy S in 2010 marked a new era for the company, with its smartphones becoming popular for their innovative features and performance.
🌐 Samsung's Ongoing Innovation and Challenges in the Tech Industry
Samsung's journey from a trading company to a tech powerhouse continued with the introduction of tablets and the development of foldable smartphones like the Galaxy Z Fold and the Galaxy Z Flip. The company's commitment to innovation is evident in its investment in AI and its plan to invest heavily in cutting-edge technologies by 2022. However, Samsung has also faced challenges, including a scandal involving its Game Optimizing Service, which was found to slow down the performance of numerous apps on its devices. The company has since apologized and pledged to prioritize customer feedback to prevent such issues in the future. Samsung's current leadership under Lee Jae-yong is navigating these challenges while continuing to drive the company's growth and innovation.
🔍 Samsung's Future: Embracing AI and Expanding Globally
Samsung's future strategy includes a significant investment in AI and 5G technology, with plans to hire new scientists and focus on user experience. The company aims to invest over 22 billion dollars in cutting-edge technology and is considering mergers and acquisitions to consolidate its position in the market. Despite facing legal and regulatory challenges, Samsung remains committed to advancing its technology and expanding its global presence. The introduction of Bixby, Samsung's AI system, and the company's ongoing research initiatives demonstrate its dedication to integrating AI into daily life and maintaining its competitive edge in the tech industry.
🗣️ Engaging with the Samsung Story: A Call to Audience Participation
This final paragraph serves as an invitation for the audience to engage with the Samsung story. It encourages viewers to share their insights, additional details, or personal experiences related to Samsung in the comments section. The paragraph also promotes the channel for more inspiring business videos, suggesting a community interest in learning about the journeys of successful companies.
Mindmap
Keywords
💡Samsung
💡Innovation
💡Diversification
💡Chabel
💡Lee Byung-chul
💡Smartphone
💡Electronics Sector
💡Galaxy S
💡Foldable Smartphones
💡Artificial Intelligence (AI)
💡Scandal
Highlights
Samsung's rise to the top with a reputation for cost-effectiveness, innovation, and quality.
Lee Byung-chul, the founder of Samsung, was born into a prosperous Korean yangban family.
Lee Byung-chul started Samsung Trading Company, named after a Korean constellation.
Samsung's early success with trading noodles and consumer goods, exporting to China.
Relocation of Samsung headquarters to Seoul in 1947 due to the Korean War.
Diversification of Samsung into different product categories under the Samsung brand.
Dispute with partner Chohong Hong-jae leading to the division of Samsung Group.
Samsung's focus on helping Korea industrialize rapidly with government protectionist measures.
Lee Byung-chul's leadership in the Federation of Korean Industries, influencing fiscal and monetary policies.
Samsung's entry into the electronics sector in 1969 with various divisions.
Samsung's production of 5 million TVs by 1978, a significant milestone.
Samsung Heavy Industries becoming one of the world's biggest shipbuilders by 1974.
Lee Kun-hee's succession and the shift in Samsung's business strategy towards cutting-edge technology.
Samsung's debut in the smartphone market with the Galaxy S in 2010.
The innovative Galaxy Note Edge with its curved screen technology in 2014.
Samsung's investment in AI and the launch of Bixby, its built-in AI system.
Samsung's commitment to invest $22 billion in cutting-edge technology by 2022.
The Game Optimizing Service (GOS) scandal affecting Samsung's reputation in performance reporting.
Lee Jae-yong's succession challenges and the impact of Korean law on succession plans.
President Moon Jae-in's reform plans for family-run conglomerates affecting Samsung.
Transcripts
[Music]
in much of the world chances are high
that someone's first smartphone is
usually a samsung the company has soared
to the top with a reputation for cost
effectiveness innovation and quality in
everything they make but who was
responsible for this how did samsung
achieve success
was born the youngest son of four
siblings to quan jae lim and lee chanwu
biengchul was the son of a prosperous
yanban family that owned land albeit as
a minor branch of the lee clan that land
was located in year young county
province of south gyeongsang the yangban
in korean society was comparable to the
landed nobility in the middle east
europe china and japan and was usually
the privileged ruling class he was born
during a time of great struggle in the
then korean empire in 1910 as it was the
time during which the empire of japan
was annexing the country as a colony
nevertheless most of the korean yangban
became the subservient korean nobility
through which the japanese exerted their
control and libyan chol's family was one
of them keeping the privilege he
completed his high school education at
seoul's jung high school before moving
to tokyo to pursue his post-secondary
education at wasita university though he
did not finish his time after returning
from japan is not known about but it can
be surmised that he spent the time
looking after his family's properties
and estates it was also during this time
that the japanese authorities began to
introduce forced cultural assimilation
and japanization so dealing with such a
predicament may also have taken up his
time after this time he eventually
started his own business a grocery
trading company that he named samsung
trading company
the name samsung means three stars the
name was a reference to the korean
cultural understanding of a
constellation about which korean
folklore tells the tale of a
well-meaning dragon fighting against an
evil one
with the samsung trading company
libyan chul traded noodles and other
consumer products made in and around the
city of daegu then exported to china and
its provinces the company profited off
the increased demand for essential goods
such as food and care products as world
war ii began with the korean and
japanese home markets cutting their
spending on luxury items as a result of
the company's success lee relocated its
headquarters to seoul in 1947.
he was forced to flee seoul when the
korean war started because the korean
people's army had taken over most of
south korea he went to busan where he
focused on chael jedong the sugar
refinery he founded in the city which
was followed in 1954 by chelmojik which
he founded and constructed in
chimsendong daegu these businesses were
established under the samsung brand
effectively diversifying it into
different kinds of products on a side
note chil jedong exists today as korea's
leading food culture company engaged in
advanced food research works it was also
during this time that lee had a partner
named chohong hong-jae who was
responsible for breaking samsung into
other kinds of goods but they had a
dispute over differences in management
style this led them to split apart and
therefore samsung group was divided into
the hyosung group the samsung group
hankook tire and other companies
during this period samsung was run with
the focused aim of helping korea
industrialize rapidly his company
benefited from the new protectionist
measures the korean government had put
in place these measures aimed to aid the
chable or large domestic conglomerates
by shielding them from the competition
and facilitating easy financing samsung
was one of those chables as he ran it as
a family owned business grooming his
third son lee kun-hee to take over
eventually the company bought three of
korea's biggest commercial banks in the
late 1950s along with an insurance
provider a cement manufacturer and a
fertilizer manufacturer
in the 1960s samsung bought additional
insurance firms an oil refinery a nylon
manufacturer and a department store
[Music]
in 1969 samsung made its debut in the
electronic sector with a number of
divisions dedicated to the sector these
included samsung corning samsung
semiconductor and telecommunications
samsung electromechanics and samsung
electronics devices a partnership
between samsung and sanyo also got
underway
opening the door for the manufacturer of
consumer goods like tvs and microwaves
the first black and white tvs samsung
sanyo produced were for the korean
market in 1970 and they were a big
success because korean consumers
preferred them to japanese sets samsung
was able to innovate quickly because it
was already a significant manufacturer
in korea and had acquired a 50 stake in
korea semiconductor samsung also made
transistor black and white tvs color tvs
refrigerators electric desk calculators
and air conditioners over the following
10 years the company produced 5 million
tvs a significant milestone in 1978.
samsung heavy industries was one of the
world's biggest shipbuilders by 1974.
the business founded samsung electronics
america and suwon rnd center in the
later part of the 1970s by this time it
was clear lieb young chul had made it he
was already topping the list of richest
koreans consistently lee also held the
position of chairman of the federation
of korean industries a powerful business
organization made up of the top
businessmen in the nation including
representatives from lg and samsung this
gave the chables significant influence
over the development of the nation's
fiscal and monetary policies the effects
of which are still being debated today
with the acquisition of hanguk janja
tongsen in 1980 samsung made its foray
into the telecommunications hardware
sector samsung started out making
telephone switchboards then developed
into telephone and fax systems before
switching to the production of mobile
phones in 1988. it was around this time
in 1987 that lee yong-chol died a
natural death leading to the previously
mentioned lee hong ki his third son to
take over as president of samsung at
first though samsung did not see the
sales it had hoped for because motorola
a 1928 founded telecommunications
company already controlled 60
of the korean mobile phone market
samsung had only been able to secure a
10
hold at the time this issue persisted
for a number of years with samsung's
products being infamous for their subpar
performance and quality it is said that
because of these problems company
management frequently thought about
leaving the cell phone market samsung is
one of the few mobile phone companies
that exceeded expectations and reached
the absolute top of the market despite
the fact that it is not the only
business to have struggled in the mobile
phone sector companies like lg and
amazon completely failed in such
endeavors this was made possible by one
crucial choice
it wasn't until 1995.
a few years after samsung unveiled its
first cell phone that it was determined
the company required a new business plan
for the future the person who initiated
this change was lee khan he it was
decided that the business would place a
greater emphasis on cutting edge
technology rather than the less coveted
and lucrative goods that they were
currently peddling the company decided
to invest in new technologies rather
than continue with such products early
in the 21st century samsung's tech
business grew and expanded and it
eventually surpassed sony to overtake it
as the 20th largest consumer company in
the world
additionally it cemented its position as
the most well-liked consumer brand
overall
lee kung hee also led the company to
invest heavily in the development of
smartphones the samsung galaxy s the
company's first smartphone was released
in june 2010. the new phone was well
received by the public who compared it
favorably to other popular
android-powered smartphones like the
nexus 1 and htc desire critics and news
media alike praised the galaxy s for its
super amoled display but it also faced
criticism for its subpar gps features
and deteriorating performance over time
samsung has produced dozens of
smartphones since the launch of the
galaxy s each one outperforming the last
in terms of new features and system
upgrades some products like the galaxy
note edge achieved the utmost levels of
success due to its curved screen edges
the 2014 release of the galaxy note edge
was distinctive this curved screen
technology has been incorporated into
many phones that have been released
since the first edge including the
galaxy s8 and s9 the phone which at the
time was viewed as more of a concept
product was nevertheless widely
publicized and served as an inspiration
for subsequent phones the tablet
features an 8 megapixel camera an
octa-core processor and a 9.7 inch
screen samsung has released a number of
excellent tablets since the tab s2's
success with the galaxy tab active 3
being the most recent in 2020 with its
most recent technological advancements
enabling the release of foldable
smartphones the samsung galaxy z fold
and the galaxy zefal 2 samsung has come
a long way since the company's first
smartphone was released in 2010.
samsung is currently led by lee ji zhang
following his father lee khan he's death
in recent times however the company has
been facing the consequences of a major
scandal the performance of over 10 000
apps including system apps google apps
instagram tiktok netflix microsoft
office and a number of other third-party
apps was found to be slower by over 56
when samsung's game optimizing service
was tested on some of the galaxy
flagship devices the list of these apps
was even created by the south korean
tech forum miko additionally it became
clear that the gos restrictions did not
include benchmarking apps this means
that even though apps were slowing down
for galaxy users their devices were
still reporting exaggerated performance
numbers for these apps in fact due to
the problem the well-known benchmarking
website geekbench resigned from
supporting samsung's most recent
flagship smartphones which include the
new galaxy s22 series flagships the game
optimization service gos app throttling
scandal has been officially apologized
for by samsung vc and ceo zhang hee-han
to users of the company's flagship
galaxy devices junghi assured samsung
customers at the company's annual
shareholders meeting that the company
would listen to customers more closely
to prevent such an issue from happening
again li ji zhang's own succession to
leadership was complicated by korean law
not long before this seeking to avoid
massive legally mandated succession
taxes he issued a rare apology over
contentious succession plans and
declared he would not give his children
management rights at the family-run
conglomerate it followed korean
prosecutors indicting him for a number
of violations and a lengthy court battle
too president of the republic of korea
moon jae-in succeeded his ousted
predecessor park hyung-hee in 2017 and
campaigned on a platform of reforming
family-run conglomerates that control
the economy he also pledged that he
would not pardon tycoon convictions
lightly as he claimed had been done in
the past the current times are not so
good for samsung
samsung's current interest in ai is
evidence that it has no plans to slow
down in its effort to produce
cutting-edge technology for the general
public the galaxy s8 introduced
samsung's built-in ai system bixby which
functions similarly to apple's siri and
already provides users with an ai
experience with its effort to integrate
ai into people's daily lives samsung is
now advancing further into the field of
artificial intelligence according to
samsung it is now concentrating on the
user experience and advantages of using
ai with a primary focus on the user
rather than just the ai itself samsung
will continue to try to embrace the use
of ai within its upcoming devices by
2022 samsung intends to invest 22
billion dollars in cutting-edge
technology with 5g and ai taking the
lead samsung intends to hire 1 000 new
scientists at ai focused research
facilities around the world as part of
its research initiative overall
projected investments in the coming
future are supposed to reach over 206
million dollars and through 2023 these
investments will be made the company
claims that this move will give it the
opportunity to improve its position
internationally in cutthroat markets
like the chip market while also giving
it new growth prospects in next
generation telecommunications and
robotics the precise sums that samsung
electronics will spend on each of the
industries highlighted were not broken
down however it emphasized once more
that mergers and acquisitions are being
thought about in order to consolidate
technology and take the lead in the
market this means they are going back to
their tried and true method of advancing
their technology by acquiring new
companies and startups have you already
heard of the story of samsung and are
there any other details that you would
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