Samsung CEO in for long haul on Apple dispute
LG Electronics chief absent from shareholders’ meeting; KT chairman wins new term
By Kim Yoo-chul
Samsung Electronics said it’s in a ``delicate situation’’ with Apple in a patent battle that encompasses 30 different cases worldwide.
The world’s biggest technology firm has suffered a legal setback in the Netherlands, where a court sided with its California-based rival on a ``FRAND’’ (fair, reasonable, and non-discriminatory terms) patent dispute that was regarded to be a precedent-setting ruling.
``I can’t talk about the ongoing patent disputes with Apple for strategic reasons,’’ Samsung CEO Choi Gee-sung said in response to a question at the firm’s annual shareholders’ meeting in downtown Seoul, Friday.
Choi, the top confidant of Samsung Chairman Lee Kun-hee, also declined to talk about how many components the firm would ship to Apple this year.
Even with all the patent issues going on, Apple is likely to pay Samsung between $9.7 billion and $11 billion for parts depending on consumer demand for iPads and MacBooks.
A Dutch court ruled that Samsung can’t fight Apple for using their third-generation (3G) patents. However, the court did tell the Korean firm it could claim some rights in products that use chips from Intel.
A Samsung spokesman announced that it will continue to protect the company’s patent rights in court claiming it doesn’t have any imminent plans to compromise. Apple Korea declined to comment on the remarks by Choi.
Separately it approved a plan to spin-off its money-losing liquid crystal display (LCD) business to put more focus on profitable organic light-emitting diode (OLED) screens.
``Samsung Electronics is seriously considering absorbing our LCD operations with Samsung Mobile Display (SMD) or S-LCD,’’ Choi said in the meeting.
SMD is a subsidiary that Samsung Electronics owns with sister company Samsung SDI. The unit, which specializes in OLED screens for mobile devices, will benefit from the merge, through cost-saving and the use of the manufacturing base of the LCD business, according to company officials.
Samsung’s long-time flat-screen partner Sony sold its 50 percent stake in S-LCD for 1.08 trillion won as part of the Japanese firm’s strategy to rein in manufacturing costs.
Choi reported to shareholders that the company made 165 trillion won in total revenue and 16 trillion won in operating profit for 2011. But he said this year will be tough.
``We created record revenue and solid profit last year despite economic uncertainties and I can say that’s partly due to the support from our shareholders. This year, Samsung will increase revenue and profit further,’’ Choi said.
``We will focus on strengthening new growth areas, including medical equipment.’’ The company didn’t give a specific profit forecast for this year.
LG CEO's absence
LG Electronics CEO Koo Bon-joon, the younger brother of LG Group Chairman Koo Bon-moo, failed to appear at his firm’s shareholders’ meeting for the second year in a row.
The company said Koo’s absence was due to a scheduled meeting with LG’s key overseas buyers. ``But our CEO Koo will be coming next year, probably because LG Electronics is seeing an improvement in key businesses,’’ said an official.
With 450 shareholders present, LG Electronics said it is aiming to reap 57.6 trillion won in revenue. Its chief financial officer Jeong Do-hyun said this year will be much stronger than the previous one in terms of profit.
``LG Electronics will invest 1.6 trillion won in facilities and 2.6 trillion won in research and development (R&D). Last year wasn’t good for us, however, this year will be totally different,’’ Jeong told shareholders.
The company is the world’s second-biggest manufacturer of flat-screen televisions, while it is seeing a rise of its market share for smartphones since Koo became CEO.
LG Hausys, an LG Group affiliate producing building and decorative materials, also said it is planning to see ``profitable corporate growth’’ this year by putting more focus on international markets.
``LG Hausys solidified our overseas business bases in China, Russia and the United States despite the sluggish local real estate markets, rising costs for materials and a slowdown in the global economy,’’ company CEO Han Myeong-ho told shareholders at the International Finance Center in Seoul.
Shareholders for telecommunications giant KT approved another term for current CEO Lee Suk-chae at its shareholders’ meeting.
``I feel full responsibility and I want to say thank you to our shareholders to give me another chance to keep my job,’’ Lee said.
KT was the first local telecommunications firm to sell Apple’s iPhone in 2009 and Lee was also the man who helped KT oversee the acquisition of its affiliate KTF.
The world’s biggest shipyard Hyundai Heavy Industries (HHI) unveiled its ``bullish’’ management target this year.
``HHI’s revenue target for 2012 has been set at 27.57 trillion won _ an increase of 10.2 percent from last year. We are also planning to clinch $30.5 billion in new orders for the remainder of this year,’’ the firm’s CEO Lee Jae-sung said at its shareholders’ meeting.
HHI shareholders also approved the company’s current CEO Lee to serve a second term.