The Korean Kid Who Created Samsung During A Time Of Great Struggle

Summary

The 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

00:00

📱 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.

05:00

🚀 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.

10:00

🌐 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.

15:02

🔍 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.

Keywords

💡Samsung

Samsung is a South Korean multinational conglomerate known for its wide range of electronics and other products. It is central to the video's theme as it discusses the company's history, growth, and impact on the technology industry. The script mentions Samsung's rise from a grocery trading company to a global tech giant, emphasizing its innovation in smartphones and other electronics.

💡Innovation

Innovation refers to the process of translating an idea or invention into a good or service that creates value. In the context of the video, Samsung's commitment to innovation is highlighted as a key factor in its success, with the company constantly developing new technologies and products, such as the first smartphone, the Galaxy S, and advancements in AI and 5G.

💡Diversification

Diversification in a business context means expanding a company's range of products or services into different areas. The script illustrates Samsung's diversification by discussing its ventures into various sectors, including electronics, banking, insurance, and shipbuilding, which contributed to its status as a conglomerate.

💡Chabel

A chabel is a large domestic conglomerate in South Korea, often benefiting from government protectionist measures. The term is used in the script to describe Samsung's position as one of these protected conglomerates, which helped it grow and dominate various markets.

💡Lee Byung-chul

Lee Byung-chul is the founder of Samsung. The video script narrates his journey from a prosperous family background to establishing the Samsung Trading Company, which later diversified and expanded into the Samsung we know today. His leadership and vision are integral to the company's history and success story.

💡Smartphone

A smartphone is a mobile phone with advanced computational and internet capabilities. The script discusses Samsung's entry into the smartphone market with the release of the Galaxy S, which was well-received and marked a significant milestone in the company's electronic sector.

💡Electronics Sector

The electronics sector encompasses the design, development, and marketing of electronic devices. The script details Samsung's expansion into this sector, starting with the production of black and white TVs and evolving to include a wide range of consumer electronics, such as smartphones, tablets, and home appliances.

💡Galaxy S

The Galaxy S is a series of smartphones developed by Samsung, representing a significant product line for the company. The video script mentions the Galaxy S as the company's first smartphone, which was released in 2010 and received positive reviews for its Super AMOLED display.

💡Foldable Smartphones

Foldable smartphones are a type of mobile device with flexible screens that can be folded for portability. The script highlights Samsung's innovation in this area with the release of the Galaxy Z Fold and the Galaxy Z Flip, showcasing the company's commitment to developing cutting-edge technology.

💡Artificial Intelligence (AI)

Artificial Intelligence refers to the simulation of human intelligence in machines that can perform tasks like learning and problem-solving. The video script discusses Samsung's investment in AI, with the introduction of its AI system Bixby and plans to further integrate AI into its devices, emphasizing the company's focus on user experience.

💡Scandal

In the context of the video, a scandal refers to a damaging event or action that brings disgrace or disrepute. The script mentions a performance scandal involving Samsung's Game Optimizing Service, which was found to slow down apps on its devices, leading to public relations issues and an official apology from the company.

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

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