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Samsung declares war on corruption

Broad management shakeup may come By Kim Yoo-chul Samsung Group has declared an all-out war on internal corruption. Lee Kun-hee, chairman of the group’s flagship Samsung Electronics, talked tough on the issue for a second consecutive day Thursday. This has triggered speculation that there may be a major reshuffle among the top echelon of Korea’s biggest conglomerate. “Chances are quite high that a big management reshuffle of high- and mid-ranking executives will soon take place because Lee is directly handling morality-related issues,” a Samsung official said. “Samsung’s audit teams have already been in action to uncover any corrupt, immoral, illegal and improper activities,” said the official. On his way to the office, Lee said Samsung was reeling from corruption-related activities that have been widespread, encompassing all Samsung affiliates. “The Techwin case is the tip of the iceberg. It seems that corruption has already spread to the entire group,” said the chairman during a brief meeting with reporters. This is the first time in years that Lee h

Jun 9, 2011By Kim Yoo-chul
Companies

B&O launches portable device

By Kim Yoo-chul Bang & Olufsen (B&O), the Danish provider of premium audio and video systems, announced the release of “BeoSound3,” an upgraded portable audio device, Wednesday. The launch comes as the high-end brand is keen to expand its local presence amid rising demand for portable devices in the market. B&O said it has cut the suggested retail price of the BeSound3 to 990,000 won from 1.24 million won as part of its promotional campaign. ``The upgraded touch-based BeoSound3 has an enhanced response time and the surface is quite solid as the device uses anodized aluminum cabinet developed by B&O’s in-house technology,’’ said Yang Min-jeong, a senior PR consultant for B&O. A rechargeable battery ensures up to 10 hours of continuous listening pleasure, while it has an SD card reader and clock-timer packaged together in the cabinet, Yang said. ``With strengthened user-interface and affordable prices, the BeoSound3 is expected to receive more attention from consumers who enjoy outdoor activities,’’ she added. The PR consultant, however, declined to unveil any fi

Jun 8, 2011By Kim Yoo-chul
Tech & Science

Sibling quest

Are Koo brothers navigating LG toward elusive turnaround? By Kim Yoo-chul LG Electronics CEO Koo Bon-joon admits the company's key handset and TV businesses are "still struggling." Koo's honest assessment captures not just the difficulty the conglomerate faces but, perhaps more importantly, the spirit of the new man in charge. The chief succeeded Nam Yong, a hired gun, meaning that he has a lot more to prove, considering he is part of the owner family. Market analysts and stock investors are asking for LG to show its capability to release "wow" products to better compete with Apple and Samsung Electronics, and to regain its lost market share in the world of ``smart devices.’’ The rare admission was received as "quite a surprise" by local reporters because Koo doesn't normally comment about the company's pending issues. "In mobile phones, it is impossible to return to the black from the second quarter. We are still struggling," said Koo during a meeting with reporters in Seoul. Asked about business forecasts for LG's television unit, the chief executive said

Jun 6, 2011By Kim Yoo-chul
Tech & Science

UDC admits patent setback

By Kim Yoo-chul Universal Display Corp. (UDC), the U.S.-based developer of organic light-emitting diode (OLED) technology for the use in flat-panel displays and organic electronics, said Monday that it will appeal Japanese rulings that invalidated key OLED patents. UDC's chief executive Steven Abramson admitted in a tech investor conference that a court in Japan invalidated the patents, but added the appeal was in the works and the litigation won’t harm its business portfolio. About patent challenges in Europe, the CEO said; "there is a challenge about one patent but there isn't a decision yet." UDC is also being challenged on two other patents by a local materials manufacturer of Duksan Hi-Metal. Korea's Samsung Mobile Display (SMD) and LG Display, as well as several local materials makers are expected to benefit from the news from Japan because the void helps them export and develop OLED materials without paying royalties. SMD has been known to pay ``millions of dollars’’ to UDC in return for using UDC’s a so-called ``PHOLED’’ materials for OLED screens used in sm

Jun 6, 2011By Kim Yoo-chul
Tech & Science

Reception problem?

By Kim Yoo-chul KT and LG Uplus, the nation’s second- and third-largest mobile carriers, are likely to follow market leader SK Telecom in lowering mobile charges but their time schedule has yet to be decided. Attention has turned to the pair after SK Telecom announced its plan on Thursday to cut mobile rates in response to pressure from the inflation-sensitive Seoul administration. SK Telecom decided to shave 1,000 won ($0.92) from its monthly fees starting September while offering 50 free text messages a month, which is expected to help mobile clients save 28,000 won a year. KT officials told The Korea Times that discounting its rates won’t chip away at its bottom lines too much since it has been diversifying its business portfolio. However, Uplus said further cuts will hit its business amid staggering business momentum. ``KT is in the final stage to introduce new billing plans that would include a measure to lessen our basic monthly charge,’’ a high-ranking KT executive said. KT spokeswoman Kim Yoon-jeong said the announcement is likely next week at the ear

Jun 3, 2011By Kim Yoo-chul
Tech & Science

Samsung, LG enjoy major tech break

Top LCD makers beaming after rival’s OLED patents are invalidated in Japan By Kim Yoo-chul Samsung and LG received good news from Japan recently that will help them widen the gap with their overseas rivals in ultrathin organic light-emitting diode (OLED) screens. The Japan Patent Office (JPO) ruled against Universal Display Corporation (UDC) of the United States in another patent suit filed there after its phosphorescence (PH) material patent was invalidated in February. The latest ruling from the JPO means that all three critical PHOLED material patents formerly owned by the Universal Display have been declared void. ``UDC lost the recent court battle in Japan, while previously as of March 23 two of its other material patents were invalidated. This is quite significant for South Korean OLED markers because it means that local firms can manufacture PHOLED materials without paying royalties,’’ said a fund manager from a European based investment bank in Seoul. Samsung Mobile Display, which is investing heavily to boost its output of ultrathin screens, has been paying

Jun 2, 2011By Kim Yoo-chul
Tech & Science

Lee takes one step at a time

By Kim Yoo-chul Lee Jae-yong, Samsung Electronics president and chief operating officer (COO), is moving to put the firm’s next growth businesses on a stronger footing. ``Lee has helped Samsung expand its stake in AMOLED and LED businesses, the company’s growth engines,’’ said an industry source, Wednesday. ``Samsung won China’s approval to establish an LCD plant, providing a gateway to penetrate into a market that is sure to be the world’s largest,’’ the source said, adding that Lee, the only son of Chairman Lee Kun-hee, played a role in that pivotal industry. However, Samsung neither officially acknowledged Lee’s feat nor made any fanfare about it. The world’s top LCD maker Samsung held a much-anticipated groundbreaking ceremony for a new facility in southern China. Samsung is planning to apply its 7.5-generation panel technology there with an investment of $2.4 billion. China is considered a key market for consumer electronics with many global firms seeking to assert a presence there. Beijing’s approval came with some dramatic elements. Samsung was late

Jun 1, 2011By Kim Yoo-chul
Tech & Science

SDI to keep advanced display business

Batteries to occupy half of total revenue By Kim Yoo-chul Samsung SDI will not transfer its advanced display business to Samsung Electronics, the company's chief executive said Wednesday. SDI’s stock price has nosedived due to investors’ concerns about a possible transfer of its AM-OLED business to Samsung Electronics. Samsung’s solar cell business was recently transferred to SDI. Samsung Electronics and SDI run a joint AM-OLED venture to boost the output of brighter flat-screens currently being used in smartphones, MP3 players and cameras. ``SDI will not give up our portion of the venture _ Samsung Mobile Display (SMD) _ because the AM-OLED business is also part of SDI’s next growth revenue,’’ said Park Sang-jin, the firm’s CEO, on the sidelines of a news conference. Samsung Electronics has increased its share in SMD to 64.4 percent, followed by 35.6 percent in Samsung SDI. ``It’s true that Samsung’s plasma business is yielding more returns after our plasma business was transferred to Samsung Electronics, but the OLED business is a totally different issue,’’ P

Jun 1, 2011By Kim Yoo-chul
Tech & Science

GS Shop eyes Asian expansion

By Kim Yoo-chul GS Shop, the country's biggest operator of cable television shopping platforms, is looking to expand its business to international markets to pursue growth beyond the saturating local market. The initial targets are China and Southeast Asian countries where television shopping services appear to be on the verge of explosive growth, according to the company’s chief executive Huh Tae-soo. GS Shop recently established a joint venture in Thailand, called True GS, as it looks to tap into the business networks of local partners, The Mall Group, CP All and TrueTelevision. Truevision owns 45 percent of the company, while GS is the second-largest shareholder with a 35 percent share. True GS will begin providing 24-hour television shopping services from the latter half of this year, with its coverage expected to reach 7 million households. ``Truevision’s marketing chief will lead the entity. GS’s senior manager Kang Tae-lim will serve as the chief operating officer (COO),’’ said Seo Joo-hui, a GS spokesman, who declined to comment on detailed business goal

May 30, 2011By Kim Yoo-chul
Tech & Science

Chemicals: LGs new bread and butter?

Group’s 4 chemical units predict lucrative future in batteries, advanced displays By Kim Yoo-chul CHEONGJU, North Chungcheong Province ― LG Group is expected to bank more on its chemical subsidiaries to garner new profits as the conglomerate’s other businesses continue to struggle. Four LG chemical units ― LG Chem, LG Household & Healthcare, LG Hausys and LG Life Sciences _ said Sunday that they will seek to push up their combined sales to 50 trillion won by 2016. This translates into more than doubling their turnover in six years since the foursome’s overall revenues amounted to 24.9 trillion won in 2010. During a media tour last week to provincial cities where the plants of the four LG affiliates are located, group spokesman Jung Jeong-wook said that ``Even the 2016 goal is tentative. We are aiming higher.’’ Leaders of the conglomerate’s conventional revenue sources in the electronics and telecom segments might be sweating as their bottom lines deteriorated in the aftermath of the financial crisis and have failed to make a fast turnaround. LG Electronics, the

May 29, 2011By Kim Yoo-chul
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