Corporate News : SEC Targets `97 Sales at W20.7 TrillioSeoul, Korea, February 4, 1997: Samsung Electronics Co. (SEC) has announced its 1997 business plans, which include W17.3 trillion in business from domestic operations and a total sales target of W20.7 trillion -- when including overseas operations. Newly appointed SEC President & CEO Jong-yong Yun, who is to take charge of all the electronics related operations of the Samsung Group (the Electronics Subgroup), held a press conference on February 3. President Yun stated that the electronics industry has already begun to feel the coming of the 21st century, which is still four years away. He went on to say that as the business environment transforms, Samsung will be placing priority on creating an aggressive, future-oriented approach to maintain its leading position.
In this connection, SEC is restructuring its business. The company has earmarked W4.5 trillion to invest in overseas operations, R&D, new facilities and expanding involvement in displays (thin film transistor liquid displays, etc.), multimedia (DVDs, etc.), micro products (MSP chips, Alpha chips, etc.), personal communication services (PCS) and networking communications. At least 80% of the budget will be devoted to future oriented businesses (businesses with high growth potential).
SEC is working to remain competitive amid a rapidly changing business environment. Therefore, for the year of 1997 three principle objectives have been put forth:
Business management will focus on decentralization, speed and simplicity.
The organization will be restructured, and resources will be concentrated on key areas.
Attention will be focused on improving quality, design and services, which is the so-called
`soft` aspects of Samsung.
SEC`s sales target for 1997 is W20.7 trillion, which breaks down into W9.8 trillion in exports, W7.5 trillion in domestic sales, and W3.4 trillion from overseas operations. Importantly, 16% of all SEC revenue will be generated from outside Korea, a figure that is close to the performance of Korea`s 10th largest business conglomerate.
The Samsung Electronics Subgroup (consisting of Samsung Electronics Co., Samsung Display Devices Co., Samsung Electro-Mechanics Co., Samsung Corning and Samsung Data Systems), plans to work closely together to achieve a combined total sales of W28 trillion (US$32.5 billion) in 1997. Their business will include sophisticated parts and components, next-generation products & systems, information technology services and telecommunications services. Their activities will play a leading role in improving the competitiveness of Korean-made products around the world.
Samsung Electronics plans to aggressively move into the overseas markets and play a leading role in the domestic government projects. The company has restructured its Telecommunications Division around telecommunications services telecommunications hardware, and terminals (mainly hand-held sets).
This year, the SEC Semiconductor Division aims to maintain its world-leading competitiveness in DRAMs and will strengthen its position in micro devices. The Multimedia Division, which has strong competitiveness in the face of a strong Yen currency, is placing its priority on the development of cutting-edge products.
The Overseas Division has divided its business into five geographical regions. Production facilities will be expanded or newly built at SEC complexes in Brazil, Malaysia, China and the UK. Annual overseas production capacity will be increased to 23 million units, including 9 million TVs. In order to accelerate overseas localization of semiconductor and telecommunications system production, SEC will also build chip plants in Austin, Texas (USA) and Suzhou, China, and a switching systems plant in Shandong, China.
Samsung Display Devices plans to expand production of Braun picture tubes and increase involvement in plasma display panels, liquid crystal displays and other next-generation display products.
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