Divide and conquer.
Anyone would say that This saying was specifically designed for Samsung..
The South Korean giant encompasses multitude of companies. Some are subsidiaries, others operate independently, in others it is a shareholder but does not have control, and others have a special distinction, such as sports clubs.
Although outside of South Korea (its country of origin), it is known primarily for its strength in consumer technology, the truth is that it’s more, much more.
The big question is how much their total income amounts to, something difficult to decipher but which, according to the company, It represents approximately 20% of the Gross Domestic Product (GDP) from South Korea, although it may vary depending on the year.
Taking the 2019 financial year as an example, in which the country’s GDP stood at 1,470,168 million euros, according to Datos Macro, the group would be close to 294,000 million euros.
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Although the company lends its famous name to almost all of its subsidiaries, many only operate in the region where they were born, and others have long been operating independently. Some are listed on the stock exchange – and therefore publish their results regularly – and others are not.
This medium has used the data that appears on the websites of the different companies, as well as those provided by Google Finance, to form as complete an image as possible of the entire ecosystem. Samsung.
The company has the largest market share in smartphone salesaccording to Counterpoint, and its technology and electronics division is the one that generates the most revenue.
But its tentacles extend to many other businesses, such as finance, industry and construction, biotechnology and services. In addition to these, there are some more specific areas such as health and sport.
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Unraveling the Samsung conglomerate is no easy task. This is the photograph that has been collected Business Insider Spain and which begins a series that will review where the income of large technology companies such as Samsung, Apple, Huawei and Xiaomi comes from.
Electronics and technology: Samsung Electronics, the jewel in the crown
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The group’s best-known subsidiary is Samsung Electronics, Seoul-based multinational company that deals with consumer electronics, telephony and components. According to Google Finance, this branch has the largest number of employees, with almost 111,000 employees.
In addition, it is one of the higher income generated for the firm, with 230.4 trillion South Korean won (around 166.674 billion euros at the current exchange rate) in 2019 and 236.81 trillion won in 2020 (around 171.290 billion euros), which represented an increase of 2.78% in a year marked by the pandemic.
In turn, this company is divided into a branch dedicated to mobile phones, wearablescomputers and infrastructure; another focused on audio and video devices, the robotics line and hospital equipment; and, finally, one dedicated to semiconductors, its main business.
Electronics is accompanied by other companies within the same division, such as Samsung SDI, which is dedicated to the manufacture of electric batteries.This subsidiary is another flagship, with more than 22,140 employees, according to the same source.
In 2019, the company reported revenue of 10.1 trillion won (7.3 billion euros) and 11.29 trillion won (8.16 billion euros) in 2020, up 11.86%.
Closely related to the previous one is Samsung Electro-Mechanics, the subsidiary of the South Korean company dedicated to the manufacture of electronic components, where camera modules and printed circuit boards are manufactured… The company has more than 30,000 employees.
Revenue from this division stood at 7.72 trillion won (around 5.629 billion euros) in 2019 and 8.21 trillion won (around 5.987 billion euros) in 2020, an increase of 6.35%.
Samsung grows more than 70% compared to the second quarter of 2020 thanks to the semiconductor business
Samsung SDS is the latest company to emerge from this area of the South Korean group. It is a information technology service provider, which includes consulting, technical and outsourcing services.
In addition, it is involved in the development of emerging IT technologies such as artificial intelligence, blockchain or the Internet of Things (IoT). The company, with more than 12,190 employees, is headquartered in South Korea, and has 8 subsidiaries spread throughout the world.
Samsung SDS generated revenues of 10.72 trillion Korean won (around 7.817 billion euros) in 2019 and 11.02 trillion (8.036 billion euros) in 2020, an increase of 2.78%.
On the group’s website, which lists the rest of the subsidiaries, also add Samsung Display, world leader in display manufacturing, and Samsung Corning Advanced Glassa company also dedicated to the electronic materials industry.
Finance: from insurance to investments and credit cards
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Beyond technology, Samsung has diversified its revenues into other areas such as finance. This branch includes subsidiaries such as Samsung Life Insurance, dedicated to life and health insurance.
The largest company in its segment in its home country and on the Fortune Global 500 list, it has more than 5,000 employees. In 2019, it reached 30.18 trillion won (22 billion euros), while in 2020 it totaled nearly 22.388 billion euros, an increase of 8.37%.
Related to the above, the group also has another companyfocused on insurance linked to industrial activities: Samsung Fire & Marine Insurance.
In its case, it added almost 5,700 employees and revenues of 21.02 trillion won (around 15.33 billion euros) in 2019, which rose to 21.89 trillion (15.96 billion euros) the following year, an increase of 4.16%. It operates in the US, Europe, China, Indonesia, Vietnam and South Korea, among others.
Samsung made a profit of 22 million in Spain during 2020
The company also has another subsidiary dedicated to the financial sector called Samsung Card.This company is dedicated to credit cards and is number 1 in its business in South Korea.
According to 2017 data, it had 9.64 million users and more than 2,380 employees.
However, the figures are not encouraging for this division, which went from earning 109.93 billion won (80.1 million euros) in 2019 to losing almost 4.5 billion (around 3.2 million euros) in the year of the pandemic.
This segment also includes: other subsidiaries such as Samsung Securitiesthe leading financial investment company in South Korea, offering asset management services to investors, as well as Samsung Asset Management, specialized in the management of investment funds, investment trusts or consulting.
On the other hand, also highlights Samsung Venture Investment, a venture capital firm that actively invests in future-oriented businesses across a variety of sectors.
Industry and construction: Samsung is behind 2 of the most famous skyscrapers in the world
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Another activity in which Samsung operates is heavy industry and construction.where it has 3 main subsidiaries: Samsung Heavy Industries, Samsung Engineering and Samsung C&T Engineering & Construction Group.
The first one is dedicated to shipbuilding, industrial machinery and wind farms, and achieved revenues of 7.35 trillion won in 2019 (around 5.36 billion euros), compared to 6.86 trillion won (around 5 billion euros) in 2020, a 6.66% decrease.
With nearly 10,000 employees, the company has undertaken some of the largest shipbuilding projects in the world.
For example, it has developed and built the first Arctic launch tank, according to its website.
7 curiosities that few people know about the history of Samsung
For its part, Samsung Engineering It is dedicated, as its name indicates, to engineering, being the first company founded in South Korea in this business.
The company has completed projects in more than 38 countries around the world, has a presence in Saudi Arabia, the United Arab Emirates, Algeria, India, Thailand, Trinidad and Tobago and Mexico and has more than 6,000 employees.
It generated revenues of 6.39 trillion won (almost 4.66 billion euros) in 2019 and increased its sales by 5.6% in 2020, to 6.75 trillion won (4.922 billion euros).
Along with them, it is part of this division Samsung C&T Engineering & Construction Group, one of Samsung C&T’s divisions, focusing on the areas of architecture, civil engineering, plants and housing development.
This company is behind of 2 of the most famous skyscrapers in the world: Malaysia’s Petronas Towers and Dubai’s Burj Khalifa. It is also involved in some of the world’s largest infrastructure projects, such as the Riyadh Metro in Saudi Arabia.
An amusement park, a zoo or a golf course
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Samsung also has businesses in the services sector.
Samsung C&T, the aforementioned group, also includes Samsung C&T Trading & Investment Group, founded in 1938 and focused on the chemical, steel and energy industries. According to the group’s website, over the past 80 years the company has contributed to South Korea’s economic development through its involvement in international trade.
Meanwhile, Samsung C&T Resort & Construction Group specializes in the construction of resorts and golf clubs.
Specifically, this company has built the Everland resort, a theme park with attractions, a zoo and gardens; a luxury golf course; and natural spaces in all kinds of facilities.
They are joined by Samsung C&T Fashion Group, dedicated to the fashion industry and with clothing brands such as Galaxy, Beanpole, Kuho or Lebeige, very popular in its country of origin.
Closely related to the latter, the company has Samsung Fashion Institution, which is part of a group of leading experts, and Samsung Design Net, the largest fashion-related database in the country. In addition, Samsung Fashion Design Fund offers opportunities to young designers.
Samsung C&T adds more than 10,560 employees and achieved revenues of 30.76 trillion won (22.432 billion euros) in 2019. In 2020, they fell by 1.77%.
Samsung develops the first extendable ‘electronic skin’ with an OLED screen that can stretch
Samsung Welstory It is another of the companies dedicated to services related to the South Korean group.
As explained on the website, it began as a division focused on the food supply service of the business of resortsbut was spun off in 2013, becoming the largest food company in the countryNow, it seeks to expand to the rest of the world.
On the other hand, within the services segment, there is also Cheil Worldwidean advertising and marketing company founded in 1973 whose clients include Adidas,…