The Korea Times

Samsung uses M&As to spur expansion

By Kim Yoo-chul Samsung Electronics is planning to expand through mergers and acquisitions (M&A). Samsung plans to invest $21 billion over the next decade in healthcare and greener technology. Samsung’s main M&A targets are not related to chips and LCD companies but on future growth engines, according to high-ranking Samsung executives, Wednesday. Samsung is entering unchartered territory, considering it has grown with no major M&A deals. It has taken over Israel’s fabless chip designer TransChip but with little to show for it. ``Samsung Electronics has been in talks with several overseas companies for acquisition deals. As far as I know, the talks are under way for firms that are able to complement in areas where Samsung lacks competitiveness,’’ said a Samsung executive. ``Overseas companies with core technologies would be our targets.’’ In chips and LCDs, Samsung plans to maintain its cross-licensing strategies with its existing business partners. The size of its targets will not be big, he said, although he doesn’t rule out the possibility of going for larg

Jan 19, 2011By Kim Yoo-chul

Companies

Chip master to deliver keynote speech at CeBIT

By Kim Yoo-chul Hwang Chang-gyu, the former semiconductor boss of Samsung Electronics and currently the country's chief technology advisor, will be among the high-profile technology personnel delivering keynote speeches at the CeBIT international technology fair, according to the German organizers of the show. CeBIT, along with the annual Consumer Electronics Show (CES), is one of the world's largest technology fairs with emphasis on information technology (IT) and telecommunications products. The event is scheduled for March 1 to 5 in Hannover, Germany. "Hwang, as the secretary general of Korea's Office of Strategic Research and Development Planning, will be participating in Hanover," said Sophia Lee, a local representative of Deutsche Messe Korea. Hwang gave the title of his speech as "ICT Solutions for a Better World," Lee said. Hwang will be the first Korean national to give a keynote speech during the opening ceremonies at CeBIT. A senior executive at CeBIT's German headquarters visited Seoul last year to invite Hwang to give the keynote speech as organ

Jan 18, 2011By Kim Yoo-chul

Companies

W2.4 tril. in bonuses

By Kim Yoo-chul Samsung Group is planning to earmark 2.4 trillion won or some $2 billion in a profit-sharing (PS) scheme for employees, sources say. The record profit sharing comes at a time when its flagship recorded a bumper year last year, while other affiliates also had a good year. The amount of the bonuses to be awarded depends on the performance of a given affiliate, Samsung officials say. ``As usual, Samsung will follow the incentive plan as scheduled,’’ said a company official, Thursday, adding the bonuses will be given out before the end of the month. He didn’t disclose the amount of the incentives. ``The total amount will reach 2.4 trillion won,’’ said one high-ranking industry source said. Samsung executes uses PS to share profits over the targets, the amount sometimes totals up to 50 percent of an employee’s annual salary. The total amount is within 20 percent of profits. Employees of Samsung Electronics, Samsung Electro-Mechanics and Samsung SDI are expected to see big bonuses. More specifically, Samsung’s semiconductor and handset units w

Jan 16, 2011By Kim Yoo-chul

Companies

Conglomerates set sights on Africa, S. America

By Kim Yoo-chul Korea's export juggernauts are investing an increasing amount of money and efforts on markets in Africa and South America, the once-overlooked regions they now hope will generate a significant part of their growth from now on. Achieving greater diversity in markets is crucial for the companies as economic uncertainties continue to cloud the forecasts for developed countries in North America and Europe. The BRIC (Brazil, Russia, India and China) nations have been garnering rapt attention from Korean companies over the past several years, and it now seems that their interest has moved more toward Africa and South America. And the sense of urgency is evident among the companies to gain an advantage in the new markets as first movers. Their competition, predictably, will be the American and European rivals. Most of the Korean companies expanding their business projects in Africa and South America appear to be the ones higher on the corporate totem pole, with mid-sized firms still looking to strengthen their positions in Asian markets. Technolog

Jan 14, 2011By Kim Yoo-chul

Tech & Science

LG aims to beat Samsung where it can

Biggest home airconditioner maker gunning for big growth in sales By Kim Yoo-chul LG Electronics, one of the world's top manufacturers of home air conditioners, is looking for major growth in air-con sales despite market uncertainties, a top company executive said Wednesday. "LG is aiming at a 20 percent increase in global air conditioner sales throughout this year as we will boost output," said Nho Hwan-yong, the president of the company's air conditioning and energy solution (AE) division. The division head disclosed the target at a news conference unveiling its latest air conditioners at its research and development (R&D) center in downtown Seoul. Rising raw material prices, exchange rate fluctuations, an increase in oil prices and uncertainties in the Euro Zone could hurt its profit margins, though easing global economic woes may cushion the impact of the challenges, he noted. Nho said LG saw growth of 30 to 40 percent in sales in 2010 from the previous year, helped by increased demand in Asia, South America and Europe. LG plans to produce 17 million air co

Jan 12, 2011By Kim Yoo-chul

Tech & Science

Samsung SDS denies IPO plan for 2011

By Kim Yoo-chul Samsung SDS, an affiliate for information technology services, is not planning an initial public offering (IPO) this year but rather opting for a big acquisition deal. Its CEO is also placing a priority on growth through exports. ``Samsung SDS plans to increase the sales portion from overseas to 30 percent this year from last year’s 20 percent,’’ said CEO Alfred S. Koh at a news conference in Seoul, Tuesday. SDS aims to reap 5 trillion won in sales this year ― an increase of more than 20 percent from 4 trillion won last year. Koh, who recently replaced Kim In as the firm’s CEO, said this year will be ``more than crucial’’ to lay solid ground for an increased international presence. He added that there are deals in their last stages of negotiation. ``In the last two years, Samsung SDS failed to yield any big results from overseas but we’ve gained some insight in return,’’ the CEO said, adding it is keenly interested in e-government and other infrastructure-related projects in emerging and developed countries. Samsung SDS provides technology-rel

Jan 11, 2011By Kim Yoo-chul

Tech & Science

With 3D TVs, Sony sees big breakthroughs

Japanese TV titan expects early recovery By Kim Yoo-chul, Kim Tong-hyung SEOUL/LAS VEGAS ― After years of losses, Sony Corporation is looking to achieve a turnaround through finding fresh revenue streams in its flagship television segment, a top company executive said. Based on the firm belief that three-dimensional (3D) TVs will expand from theaters to living rooms, the world’s No. 3 maker of flat-screen TV sets is poised to channel more resources to the emerging technology. ``Sony’s television business is striving to chalk up recovery in profitability as early as possible. Toward that end, 3D TVs are critical,’’ Toshifumi Okuda, the head of Sony’s TV division, told The Korea Times in a recent interview. Okuda, who has led Sony’s liquid crystal display (LCD) TV business since last May, said that the Tokyo-headquartered outfit will seek to achieve aggressive sales targets for this year. Okuda’s division, which has play the role of Sony’s cash cow, has yet to set up sales goals for the fiscal year 2011 ― from this April through next March. Over the ongoing fi

Jan 11, 2011By Kim Yoo-chul

Tech & Science

Smartphone fever brings about data dilemma

Telecom companies’ unlimited data services seen as double-edged sword By Kim Yoo-chul Cutthroat competition tends to prompt companies to go the extra mile in making overly favorable promises to attract as many customers as possible. However, when the marketing blitz subsides, they realize the pledges were simply too much for them to carry out. Korean wireless operators seem to be in a similar situation as far as data services are concerned ― originally, they offered unlimited services but are looking to revise this. Even the Korea Communications Commission (KCC), which oversees the telecom industry, has acknowledged that data congestion continues to cause hitches. ``The popularity of advanced smartphones and tablet PCs has triggered mobile data traffic congestion generating concern for mobile operators,’’ a KCC official said. An increasing number of consumers are browsing the Internet on their mobile gadgets, a trend accelerated by the advent of the iPhone in late 2009. Understandably, the mobile Internet networks run by the nation’s leading carriers suf

Jan 10, 2011By Kim Yoo-chul

Tech & Science

KT gives out iPads to all employees

By Kim Yoo-chul KT, Apple's exclusive partner in Korea to sell iPhones and iPads, is set to foster its "smart working" drive with its decision to distribute 3G-based iPads to all employees. "KT has begun offering Apple's 3G-based tablet PCs to our 32,000 employees to get them Wi-Fi connectivity since late last week," said Kim Yoon-jeong, a company spokeswoman. Kim added that with the measure, the nation's second-biggest mobile carrier will be able to cut managerial costs and increase the productivity as employees could proceed internal and paper-based works via the tablets regardless of the places and circumstances. "With iPads, KT employees can perform their own tasks much faster by using our cloud computing systems. There is no need to install software programs and even solutions for working," according to KT's Kim, Sunday. The decision comes after SK Telecom is spending more to strengthen its cloud computing systems for better smart working amid the telecom industry's convergence era. Cloud computing is an Internet-based service, whereby shared servers provide s

Jan 9, 2011By Kim Yoo-chul

Tech & Science

Conglomerates to boost investments this year

By Kim Yoo-chul The country's leading conglomerates are ready to shell out big bucks on investments despite economic uncertainties lingering both at home and abroad. LG Group, the country's fourth-largest chaebol, set the tone last week, announcing it will spend a record-high 21 trillion won in building new manufacturing and research facilities. Samsung Group and Hyundai-Kia Automotive Group followed suit this week with unprecedentedly aggressive schemes _ the former plans to spend 43.1 trillion won and the latter, 12 trillion won. Samsung’s 43.1 trillion won marks a historic high in terms of yearly investments by a single group. That of Hyundai Automotive, one of the world’s top five automakers, also represents an increase of 14.2 percent from 10.5 trillion won a year ago, which is necessary for further growth according to its owner. ``In order to proactively meet the rising demand from emerging markets such as China, Hyundai Automotive will expand overseas outputs based on brisk investments,’’ Chairman Chung Mong-koo said Wednesday. The 72-year-old added th

Jan 6, 2011By Kim Yoo-chul

Kim Yoo-chul

Read more

Samsung uses M&As to spur expansion

Chip master to deliver keynote speech at CeBIT

W2.4 tril. in bonuses

Conglomerates set sights on Africa, S. America

LG aims to beat Samsung where it can

Samsung SDS denies IPO plan for 2011

With 3D TVs, Sony sees big breakthroughs

Smartphone fever brings about data dilemma

KT gives out iPads to all employees

Conglomerates to boost investments this year

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