Samsung warns of Euro turmoil

By Kim Yoo-chul

Samsung Electronics Chairman Lee Kun-hee isn’t ruling out the possibilities that the macro-economic troubles in Europe may negatively impact on the company’s European business, though he believes the intensity of the impact should be limited.

``Economic troubles in Europe look more serious than anticipated. We expect some impact; but nothing direct,’’ Lee told reporters upon his arrival to Gimpo International Airport from a three-week trip to Europe, late Thursday.

This is the first time that the chairman has made comments about the troubles in Europe. Lee inspected the company’s operations in Spain, Italy and France, where the tech giant is leading over rivals.

With the North America and China, Europe is one of its strategically-important markets.

Last year, Samsung reaped 36.13 trillion won in revenue from Europe, accounting for 23.3 percent out of its total of 154.53 trillion won, a spokesman said.

Japan was also another cause for concern for the chairman. ``I’ve met several businessmen in Japan. Unlike in the past, it’s true that Japan is struggling,’’ Lee told reporters.

``Japanese and European people still want their governments to provide well-organized social welfare programs and I think that’s the main reason to cut their zeal for work,’’ Lee said.

Major Japanese consumer electronics companies are suffering or expecting record losses. Sony, Sharp and Panasonic have already announced or are predicting huge losses for their just-ended fiscal year hit by the rising yen and the burgeoning Samsung and LG Electronics.

A spokesman said Lee will stay in Korea during June to handle the group’s key pending issues, adding he will fly to London for the Summer Olympics in early July as a member of the International Olympic Committee (IOC) and the representative of the game’s main sponsor.

Lee, however, declined to comment on the ongoing family feud over his father’s inheritance.