Korea's destiny lies with Samsung, or does it?

By Park Hyong-ki

Samsung Electronics is a monster company.

Everything it has its hands on is big. But big may not be the precise word to describe the company.

It is humongous and strong, not only in terms of earnings but also its influence on the economy.

It is the biggest investor, biggest employer and biggest advertiser.

Without its mighty chip business, Korea could have kissed its economy goodbye, left with almost no hope of a recovery.

Its exports of its DRAM and NAND flash memory chips have saved the day for the Korean economy, which will be able to see its wishful 3 percent growth just around the corner.

Also thanks to the company’s stellar smartphone business and shareholder-friendly policy, the stock market is having a field day.

With Samsung Electronics’ market capitalization accounting for more than 30 percent of the total stock market value, there is excitement in the air that the KOSPI will breach 3,000 points in the near future ― a number once unthinkable and unimaginable.

Everyone and every company here look up to the company as the benchmark.

When it announced its generous dividend policy, other listed companies followed suit ― more good news for the KOSPI.

When it announced a generational shift for its top management, other companies began taking after the tech giant.

No one would dare to move first until Samsung does, and no one would dare to challenge or criticize it, including the news media, whose very own survival depends on Samsung’s big advertising budget.

It is “the Hulk,” who has become a lot bigger than the state, becoming too big to fail because the Korean economy, too, depends on it for growth, much of it coming from the exports of chips and other tech appliances.

Samsung’s failure or collapse would deal a devastating blow to Korea as once the little apprentice has now become the master.

No one expects or wants it to fail. But everyone wants the company to change and lead change.

Change is a simpler term for innovation, and this is, perhaps, where Samsung is distinguished completely from Apple, Samsung’s rival and customer.

Samsung is colored heavily as chaebol, while Apple is branded not just an innovator, but one that takes the path of self-destruction of its former self to come up with something new.

Changes are in progress, it seems, given Samsung’s recent announcements.

It may take some time to see a fully changed version of the tech giant, even with the antitrust regulator wielding its stick against it.

But it really does not need to look further, outside Korea or global companies for guidance on change, but listen again to Lee Kun-hee’s Frankfurt declaration in the 80s when he was seeking a total makeover ― “change everything except your wife and kids.”

Lee’s advice applies not only to Samsung but to all corners of Korea, faced with problems in every direction. The country's destiny lies not in Samsung, but changing to become better than former self.

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