With its headquarters located in Suwon, South Korea, Samsung Electronics is a worldwide electronics corporation. Since 2009, it has consistently ranked as one of the world’s largest information technology companies by sales. Furthermore, it serves as the flagship subsidiary of the renowned Samsung Group. Many investors closely monitor Samsung’s stock due to its influence in the global tech market.
Samsung Electronics employs over 370,000 people and operates assembly facilities and sales networks in 88 countries. Consumer electronics manufacturing is the company’s primary activity. Components and end products are its two business segments.
Lee Kun-Hee’s vision: Transforming Samsung into a global leader
Lee Kun-Hee, Lee Byung-Chull’s son, succeeded him after his death in 1987. Samsung split into five businesses. Lee Kun-Hee took charge of leading the electronics division. Meanwhile, Lee Byung-Chull’s other four sons and daughters assumed responsibility for managing the remaining divisions.
Lee Kun-Hee believed that Samsung was unprepared to face international competition. Additionally, he felt the company had become complacent, largely due to its dominant position in the South Korean economy.
He is renowned for telling Samsung executives, “Change everything except your wife and children.” Samsung insisted that employees alert their superiors to mistakes under what Lee referred to as a “new management” concept.
Additionally, it discouraged administrative practices, promoted women to senior executive positions, and prioritised product quality over quantity.
As a result of Lee Kun-Hee’s cultural transformation, Samsung proceeded to expand into international electronics markets in the 1990s.
Despite its achievements, the company suffered from corporate scandals during those years, including numerous bribery and patent-infringement lawsuits.
In 1996, authorities found Lee Kun-Hee guilty of bribing former president Roh Tae-Woo in one such case. However, the company continued to improve, both in terms of technology and product quality.
As a result, several of its technological products—ranging from semiconductors to LCD screens and computer monitors—eventually entered the top five in worldwide market share rankings.
The rise of Samsung’s galaxy, family legacy, & corporate Controversies
The Rise of the Galaxy Series
Beginning in the 2000s, Samsung’s Galaxy smartphone line quickly gained popularity. As a result, it became one of the company’s most acclaimed products and one of the top-selling smartphones worldwide.
Samsung’s Pioneering Role in Microprocessors
In the late 20th and early 21st centuries, Samsung was one of the biggest producers of microprocessors worldwide and provided the chips for Apple’s initial iPhone models.
Dominance in Television Manufacturing
Since 2006, the company has been the top-selling television manufacturer around the globe.
Expansion into Tablets and Smartwatches
In 2010, the Galaxy series expanded into tablet computers with the release of the Galaxy Tab. Then, in 2013, Samsung further diversified by launching smartwatches with the release of the Galaxy Gear.
Innovating with the Galaxy Fold
In 2019, Samsung announced the Galaxy Fold, a smartphone that folds up.
Lee Kun-Hee’s Leadership and Legal Challenges
Lee stepped down as chairman of Samsung shortly after facing accusations of breach of trust and tax evasion. These accusations were linked to a scheme that came to light in April 2008.
In July, he was found guilty of tax evasion. As a result, he received a sentence of three years in prison, but with a suspended sentence. Additionally, he was fined approximately $80 million.
A Return to Power and Olympic Success
In December 2009, the South Korean government granted Lee a pardon. Consequently, he was able to continue serving on the International Olympic Committee. Furthermore, he took the lead in South Korea’s successful bid to host the 2018 Winter Olympics in Pyeongchang-gun.
Leadership Transition and Lee Jae-Yong’s Legal Struggles
Samsung Group executives appointed Lee Kun-Hee head of Samsung Electronics, the conglomerate’s largest division, in March 2010.
He reappeared later that year as Samsung Group chairman. But he had a heart attack in 2014, which rendered him unable to function until his passing in 2020.
Lee’s son, Lee Jae-Yong (Jay Y. Lee), became the de facto head of the Samsung Group even though Lee kept his positions.
Lee Jae-Yong was sentenced to prison in 2017 for bribing former president Park Geun-Hye. After serving a year, the court suspended his sentence in 2018, which led to his release.
The court revoked the suspension, leading to his incarceration from January to August 2021. Eventually, authorities granted his release.
Samsung’s Management Amid Leadership Challenges
Two, and later three, co-chief executive officers ran Samsung while Lee was incarcerated.
Controversies Surrounding Business Mergers
In 2020, authorities charged Lee with financial offenses related to the 2015 merger of two Samsung businesses.
The government stated that once Lee took over as CEO, he manipulated the valuations of the two firms to strengthen his overall hold on Samsung.
Hits 4-year low amid AI, Trump risks
Concerns over the effects of U.S. tariffs under a new Donald Trump administration caused shares of Samsung Electronics (KS:005930), the leading memory chip manufacturer in the world, to drop early in November to their lowest level in over four years, according to analysts.
This year, the South Korean tech behemoth is behind its competitors in meeting the growing demand for artificial intelligence chips, making it the worst-performing stock among multinational chipmakers such as TSMC and Nvidia (NASDAQ:NVDA).
Lee Min-hee, an analyst at BNK Investment & Securities, stated that Samsung depends more on Chinese consumers than its regional rival SK Hynix. As a result, she expects Trump’s possible taxes on Chinese imports to hurt Samsung more.
Hynix has been selling more high-end AI server processors to Nvidia and other U.S. clients.
According to Greg Noh, an analyst at Hyundai Motor (OTC:HYMTF) Securities, Trump has threatened to impose a general 10% tariff on imports and a 60% tax on Chinese goods, which would lower demand for chip-using electronics devices.
Yoon Suk Yeol, the president of South Korea, expressed worries last week that Chinese competitors would lower export prices and undercut Korean semiconductor companies abroad if Trump threatens to impose high duties on Chinese imports.
Samsung’s stock has fallen 34% this year and is on track to post its worst annual performance in more than two decades. This year, U.S. chipmaker Nvidia has gained 199%, while shares of SK Hynix have increased 32%.
As the KOSPI market as a whole declined by 1.5%, Samsung shares, the most valuable stock in South Korea, continued to decrease for a fourth consecutive session, down 2.1% as of 01:26 GMT after plunging as high as 2.5% to 51,700 won, the lowest since June 24, 2020.
Trade Samsung Stock with T4Trade
Trading Samsung stock through T4Trade, a reliable CFD broker, offers several advantages for traders seeking exposure to one of the most prominent technology companies in the world.
T4Trade provides a platform designed for fundamental traders, sentiment traders, and events traders, enabling them to capitalize on fluctuations in Samsung’s stock price influenced by global economic and geopolitical developments, such as those highlighted in the article.
With T4Trade, traders can access Samsung’s stock through CFDs, allowing them to profit from both rising and falling prices without owning the underlying asset.
This flexibility is particularly beneficial in volatile markets, where external factors like U.S.-China trade relations, AI chip demand, and regional competition create significant price movements.
Additionally, T4Trade’s competitive spreads, advanced trading tools, and educational resources make it an ideal choice for traders aiming to leverage opportunities in dynamic sectors like technology and semiconductors.
Khước từ trách nhiệm: This material is for general informational and educational purposes only and should not be considered investment advice or an investment recommendation. T4Trade is not responsible for any data provided by third parties referenced or hyperlinked in this communication.
