Tag: Samsung

This is probably a smart move with the amount of major car companies now offering electric vehicle options that is driving increased competition. If Samsung wanted to get into this market they should have done it at least a decade ago in order to already have captured market share like Tesla has done:

But at Samsung, still Apple’s top rival in the smartphone segment, its proven “go-to-market strategy” won’t be applied in the finished EV segment, as the Korean tech behemoth decided recently not to manufacture its own brand of EVs, as two senior executives, both of whom are directly involved in the issue, told The Korea Times. 

The core reasons behind this decision are that it doesn’t believe its entry into the finished EV segment will see sustainable profits, and it holds the intention to continue avoiding any possible conflicts with its top clients, amid the focus on its contract-based semiconductor foundry business, according to them.

“After thorough reviews, response and discussions with clients, top Samsung management reached a consensus that making a foray into the finished EV segment won’t be the right fit both in terms of a profit standpoint and from a client management perspective,” one of the sources said on condition of anonymity.

Korea Times

You can read more at the link.

I guess we will see how long this position lasts with other electronic rivals like Sony and Apple developing plans to enter the EV market:

After Sony made a surprise announcement that it would start making electric vehicles, everyone at CES 2022 wanted to know if Samsung Electronics was going to too.  

Han Jong-hee, the vice chairman of the tech giant who oversees consumer electronics and smartphones, suggested not Wednesday, although automotive devices and parts are of interest to the company.   

“We’ve expanded the automotive business, especially through an acquisition of Harman,” Han said during a press conference on the sidelines of the tech trade show, which runs through Jan. 7.    
“But we don’t have any plan to enter car manufacturing,” he said. 

Joong Ang Ilbo

You can read more at the link, but Samsung at one time had Samsung Motors that built cars. However, this venture failed and they ended up selling it to Renault. This prior failure may be why they are hesitant to enter the EV market.

Could you imagine having to pay this much in taxes:

The scions of Samsung Group, South Korea’s top conglomerate, are likely to unveil a plan this week on how to finance their massive inheritance tax, which includes the donation of late group chief Lee Kun-hee’s art collections.

The senior Lee, who was South Korea’s richest man, left more than 22 trillion won ($19.6 billion) worth of assets, including stocks valued around 19 trillion won.

Lee, who died in October last year at age 78, was survived by his wife, Hong Ra-hee, only son, Jae-yong, and two daughters — Boo-jin and Seo-hyun.

Lee’s family members are expected to pay around 12 trillion won in inheritance taxes for the late chief’s assets. 

They have to report and pay inheritance taxes to local authorities by the end of this month.

Korea Herald

You can read more at the link, but you know a tax bill is high when Samsung heirs are even having trouble trying to pay it.

This is going to be quite the tax bill for whoever takes over Samsung after the death of Lee Kun-hee:

As Samsung chief Lee Kun-hee passed away, his heirs, including his only son, Jae-yong, and his sisters will shoulder a record high amount of inheritance tax, industry sources said Sunday.

Lee Kun-hee, who led South Korea’s top family-controlled conglomerate Samsung Group, died at a hospital in Seoul on Sunday at age 78, leaving behind stock assets of some 18 trillion won (US$15.9 billion).

The senior Lee is survived by his wife, Hong Ra-hee, and only son, Jae-yong, and two daughters — Boo-jin and Seo-hyun.

Korea Biz Wire

You can read more at the link, but the article says the tax bill will be about 10 trillion won which is about $9 billion dollars.

Congratulations to Samsung on winning this huge contract:

Samsung Electronics signed a 7.9 trillion won ($6.6 billion) deal to supply network equipment to U.S. telecommunications company Verizon, the Korean IT firm disclosed Monday in a public filing.

Under the contract, Samsung Electronics America will provide equipment, including for 5G connections, to Verizon for five years through December 2025. By volume, it’s the biggest single supply deal for network equipment ever secured by a Korean company.    

Samsung had worked with domestic mobile carriers last year to make Korea the first country to commercialize 5G connections. After 5G debuted April 2019, the company has signed network equipment supply deals with major telecommunications operators, including Canada’s Videotron, the U.S.’s Cellular and New Zealand’s Spark.   

Joong Ang Ilbo

You can read more at the link, but hopefully Samsung continues to beat out contracts over Huawei, their main Chinese competitor. ROK Heads may remember that Huawei has been accused of spying on behalf of the Chinese communist party.

This update on the Lee Jae-yong legal saga makes me wonder what was done behind the scenes by Samsung to influence this panel’s decision?:

Samsung Group heir apparent Lee Jae-yong was granted a respite Friday in a legal battle over his alleged role in a controversial merger and fraudulent accounting, as an independent panel of experts concluded that prosecutors should not indict him. 

However, Samsung is still cautious as Lee’s legal battle is not over.

After hours of discussion, the panel, made up of civil activists, legal experts and others, concurred that the investigation into Lee unwarranted, giving a breather to Samsung and its de facto leader.

“We respect the decision from the committee,” Lee’s lawyers said in a release. “We thank the committee for giving Lee and Samsung a chance to focus on their business activities and overcome the current crisis.”

Early this month, a few days ahead of a court ruling over his detention, Lee, vice chairman at Samsung Electronics Co., requested the panel review whether prosecutors’ investigation is fair, seeking public support for the high-stake legal battle.

The independent panel was introduced two years ago to enhance neutrality and fairness of prosecutors’ probes into cases that are of great public interest. In a nutshell, the panel was created to rein in prosecutors’ powers.

Yonhap

You can read more at the link. I have no idea if Lee is guilty of what he is accused of, but what I do know is that Korea is a rule by law nation instead of a rule of law nation. If powers that be want him guilty they can likely make it happen unless Lee gives them what they want.

Here is the latest on the Korean government’s attempt to put Samsung heir Lee Jae-yong behind bars:

 A court in Seoul early Tuesday refused to issue an arrest warrant for Samsung Group’s de facto leader, Lee Jae-yong, who are under investigation over succession-related allegations.

The Seoul Central District Court turned down the prosecution’s request to put Lee, vice chairman of Samsung Electronics, behind bars, citing that there is not sufficient probable cause for his arrest.

Two other Samsung executives, Choi Gee-sung and Kim Jong-joong, from the group’s now-disbanded control tower, the Future Strategy Office, also avoided arrest.

“There was insufficient explanation on the need to arrest the defendants against the principle of trial without detention,” Judge Won Jung-sook said.

Yonhap

You can read more at the link,

If there wasn’t enough problems for Samsung dealing with the coronavirus outbreak, now Iran is making threats against the smartphone maker:

An Iranian official on Tuesday warned Samsung Electronics that it is planning to restrict the use of the tech giant’s mobile phones in the country, accusing the company of bowing to pressure from the United States.

The official’s statement is a response to Samsung’s decision to limit app purchases for Iranian users of its Galaxy Store, for which it cited issues with converting Iranian currency. The policy is set to take effect beginning in late February.

But Iranian news outlets have reported the move as a response to U.S. sanctions against the country and have suggested the restriction will widen to free apps as well next month. Samsung is the dominant smartphone producer in Iran, with more than 50 percent market share.  

Mohammad Jafar Na’nakar, a government official who heads the legal department at Iran’s Ministry of Information and Communications Technology, delivered the warning to Samsung during an interview Tuesday with Press TV, an Iranian state-run news outlet.

“The list of measures against Samsung is ready,” Na’nakar said.

Joong Ang Ilbo

You can read more at the link.