Daniel Hruska Journalist Mic Wright ponders why Samsung isn't being investigated more closely, given the checkered past of the family-run South Korean company.
After returning from a business trip from South Korea in 2007, I got hold of the documents related to this trip. Apparently the person responsible for public relations "pressed the wrong button". At the time I was working for Stuff and flew to Korea with a group of British journalists and several other journalists. It was an interesting journey. I've seen some really weird devices designed for the South Korean market, got a taste kimchi and visited many factories.
In addition to my tech visits, Samsung was preparing for a press conference for its latest phone – the F700. Yes, this is a model that plays a key role in litigation with Apple. The iPhone had already been introduced to the public at this time, but had not yet gone on sale. Samsung was eager to show that it had the future of smartphones in its hands.
Koreans are extremely polite people, but it was more than certain that they were not exactly thrilled with our questions. Why didn't the F700 blow our minds? (Of course, we didn't say, "Because it had a response about like a snorted participant in a forty-hour Resident Evil movie marathon.")
After returning from Korea, reading an unwitting public relations report, I discovered that Samsung considered the F700 a "huge success" marred only by "the negative attitude of a British group only interested in returning to its hotel bar, which it colonized during its visit." That, my dear South Korean friends, is what we call cultural differences.
A lackluster touchscreen device that was rather disappointing, the F700 survives to this day as a symbol for Samsung that it was here before the iPhone, and for Apple as proof that South Korean design has changed significantly since the unveiling of the Cupertino iOS device.
In 2010, Samsung introduced its Galaxy S, a completely different device than the F700. They don't look like they're from the same model series at all. Apple therefore stated that the layout of the elements on the Galaxy S strongly resembles that of the iPhone. Some of them even have a very similar design. Apple went further and accused Samsung of copying the design of boxes and accessories.
The statement from the head of Samsung's mobile division, JK Shin, was accepted as evidence in court, giving Apple's claims even more weight. In his report, Shin expresses concern about fighting against the wrong competitors:
"Influential people outside the company came into contact with the iPhone and pointed to the fact that 'Samsung is falling asleep.' We've been keeping an eye on Nokia all along and focused our efforts on the classic design, clamshells and sliders."
“However, when our User Experience design is compared to Apple's iPhone, it really is a world of difference. It's a crisis in design."
The report also hints at Samsung's effort to give the Galaxy line an organic feel instead of simply imitating the iPhone. "I hear things like: Let's do something like the iPhone... when everyone (users and industry people) talk about UX, they compare it to the iPhone, which has become the standard."
However, design is far from Samsung's only problem. In the summer edition International Journal organization Occupational and Environmental Health Samsung has been identified as the cause of most of the health problems in the semiconductor industry.
Study Leukemia and non-Hodgkin's lymphoma in semiconductor workers in Korea writes: "Samsung, the world's largest information technology and electronics company (measured by profits), has refused to release data related to manufacturing processes affecting electronics workers and has delayed attempts by independent researchers to obtain the necessary information."
A comment from another source on the same points to Samsung's stance against unions and overall control of the company:
“Samsung's long-standing policy of banning union organizing has attracted the attention of critics. In the general corporate structure of Samsung, the policy-making that governs the activities of the vast majority of subsidiaries is concentrated.
"This centralization of decision-making has received strong criticism from investors concerned about the overall efficiency of the Samsung Group."
Samsung is a so-called chaebol – one of the family conglomerates dominating South Korean society. Like the Mafia, Samsung is obsessed with keeping its secrets. In addition, the tentacles of the chaebols are stretched into almost every market and industry in the country, gaining enormous political influence.
It was not difficult at all for them to resort to fraud to maintain their position. In 1997, South Korean journalist Sang-ho Lee received secretly recorded audio recordings of conversations between Samsung Group Vice Chairman Haksoo Lee, Korean Ambassador Seokhyun Hong, and a publisher Joongang Daily, one of the most prominent newspapers in Korea associated with Samsung.
The recordings were made by the Korean secret service NIS, which itself has been repeatedly implicated in bribery, corruption and money laundering. However, the audiotapes revealed that Lee and Hong wanted to deliver nearly three billion won, roughly 54 billion Czech crowns, to presidential candidates. The case of Sang-ho Lee became famous in Korea under the name The X-Files and had a significant impact on further events.
Hong resigned as ambassador after an official investigation was launched into Samsung's illegal subsidies to political parties. IN conversation (English) with the Cardiff School of Journalism and Cultural Studies, Lee talks about its aftermath:
“People realized the power of capital after my talk. Samsung owns the Joongang Daily, giving it unprecedented power because its economy is strong enough for large-scale advertising.”
Lee was then under considerable pressure. “Samsung used legal methods to stop me, so I couldn't bring anything against them or do anything to make them even a little nervous. It was a waste of time. I was labeled a troublemaker. Because people think that the legal cases have ruined my company's reputation," explains Lee.
And yet, Samsung managed to dive into its problems without Lee. In 2008, the home and office of the company's then chairman, Lee Kun-hee, were searched by the police. He resigned immediately. A subsequent investigation found that Samsung maintained a sort of slush fund to bribe the judiciary and politicians.
Subsequently, Lee Kun-hee was found guilty of embezzlement and tax evasion by the Seoul Central District Court on July 16, 2008. Prosecutors sought a seven-year sentence and a $347 million fine, but ultimately the defendant got away with three years probation and a $106 million fine.
The South Korean government pardoned him in 2009 so that he could financially help organize the 2018 Winter Olympics. Lee Kun-hee is now a member of the International Olympic Committee and returned to head Samsung in May 2010.
His children hold key positions in society. The son, Lee Jae-yong, works as president and chief operating officer of Samsung Electronics. The eldest daughter, Lee Boo-jin, is the president and CEO of the luxury hotel chain Hotel Shilla, and the president of the Samsung Everland theme park, which is the de facto holding company of the entire conglomerate.
Other branches of his family are inextricably involved in the business. His siblings and their children belong to the leadership of leading Korean companies and associations. One of the nephews holds the position of chairman of CJ Group, a holding company involved in the food and entertainment industry.
Another family member runs Saehan Media, one of the largest manufacturers of blank media, while his older sister owns the Hansol Group, the country's largest paper producer with interests in electronics and communications. Another of his sisters was married to a former chairman of LG, and the youngest is preparing to head the Shinsegae Group, Korea's largest shopping mall chain.
However, even in the Lee dynasty there are "black sheep". His older brothers, Lee Maeng-hee and Lee Sook-hee, launched legal proceedings against their brother in February this year. They are said to be entitled to hundreds of millions of dollars worth of Samsung shares left to them by their father.
So it's now clear that Samsung's problems run much deeper than the legal dispute with Apple. While Apple is often public criticized for the conditions in the Chinese factories of partners, Samsung is no longer covered so much by the Western press.
As Apple's only significant competitor in the tablet market (aside from Google's Nexus 7) and as the only company actually making money from Android, Samsung should be under more scrutiny. The idea of a shiny, futuristic and democratic South Korea is perhaps inflated because of neighboring communist North Korea.
Of course, the South sounds better thanks to its success in the consumer electronics and semiconductor industries, but the grip of the chaebols feels like a malignant tumor. Corruption and lies are a pervasive part of Korean society. Love Android, hate Apple. Just don't be fooled into thinking that Samsung is good.
nice article :)
The last two sentences are wonderful.
Interesting article... It's just today's society, well, there's no time for anything and all you need is piecemeal information, according to which one can immediately identify with one side or the other.
See cause Megaupload. It was most important for the Czech and foreign tabloid media to portray the person in question as "That disgusting fat pig who supports piracy!" Above all, let it be shown how many cars he has and how much money in cash! And the huge house! Obscenity!!!" And only rarely could a decent person read how ridiculous and contrived it all was...
The same is Apple vs. Samsung. People spit on Apple for being "embarrassing and all they can do is judge, ugh! And that iPhone of theirs, ugh, I'll never pick it up!"
The worst thing about the whole situation is that the media reported the whole event very poorly and superficially, and people (or the crowd) got the impression that Apple is evil and Koreans are gods, which also reflected in sales. Of course, even Apple has its significant flaws, but in principle it was a very unfair business on the part of Samsung, and unfortunately, the fighters in the discussions have absolutely no idea what a disservice they are doing to this company.
I had the opportunity to chat with several South Koreans and the way the author writes here that things are not as rosy there as we think here is a lie. They really live there at a high level and far better than here or even in the US, where there are huge differences.
Otherwise to Samsung. The author is too biased against him and his article is also directed against only one side. I don't really care who wins in a Samsung vs. Apple, I think samsung must have copied the first iphone as it was really far behind. However, samsung and its team can always outrun apple in its own products. They themselves don't have the top innovative ideas like Jobs and Apple (we'll see how Apple can manage without Jobs :) ), but they can get the most out of that idea! Of course, I'm not a supporter of copying, but if apple sold a "license" or something else these two companies agreed on, it would certainly be best for the end customers. Otherwise, Google will put all these companies in their pockets at once :D.
To Samsung Management. The fact that the whole family is intertwined in the company is nothing unusual. An example is many companies both in Europe and in the USA. Also, the fact that they intervene in several sectors of the industry is also completely normal, and rather this is how every successful company should do it. As a native of Zlín, I will certainly mention that Baťa did not only do business in footwear ;-), but produced practically everything.
Therefore, I wish good luck in the field of electronics to both Samsung and Apple ;-)
With this post, I just wanted to oppose a very heated article by a British author.
No offense, but can you give an example where Samsung went further than Apple? And when was he able to overtake Apple in its products? Finally, I would like to point out that I did not find a single questioning of the standard of living of an ordinary South Korean in the article, so I do not understand your accusation of the author of lying.
I work for a company that was bought by a multinational South Korean conglomerate and I can say that their mentality of respecting us is amazing. I'm glad they bought us. But they also have their inner sides, where they won't let anyone in and a completely different perception of family and business. The way the family is connected to the company really cannot be compared with companies in the West. PS: it doesn't bother me personally, they raised our company higher. :-)
Well, my former company, which was run by the Japanese, raised all the people as much as possible on the way to Blazinca
that's what I call PR Apple, or totally brainwashed :-D
“… British groups only interested in returning to her hotel bar which she colonized during the visit.” — I've been living in Ireland for a few Fridays now and can confirm that the Koreans got it absolutely right. Those are the cultural differences, unfortunately. (This article, if it is not intended from the very beginning as an ironic setting of the mirror of America, sounds tendentious even on the Apple-fan page, and that's saying something.)
:D the authors (British and of this article) discovered America. Every larger company is a mafia with strong lobbies not only in politics, but Apple is no exception. If it were to be written how it all works in the USA, which plays nice and at the same time they are the biggest bastards, that would also be a nice read. Just to name a few examples: the FED, the US dollar, Iraq, Libya, etc. Why does the United States, which defends human rights, never attack Somalia or Zimbabwe? And why Libya and Iraq? What about US oil companies? Are you saints too? I think the article is below par.
Finally, the article brings a different perspective on the competition. Nowhere in the article does it say that the US is "holy" or "divine". Actually, it doesn't compare to the US at all. Your post is just expressing your personal frustration with the united states. Try to look at the world from a more optimistic angle. :-)
too bad you're out. I clearly write at the beginning of the comment that every large company is a mafia, not just the American ones. I only mentioned America because Apple is an American company and here in the Czech Republic it is usual that what is American is good and what is Eastern is bad ;)
Very interesting article. I don't think the author was extremely biased, maybe a little bit, but it doesn't hurt to accept all the facts objectively. Personally, for example, it bothered me quite a bit when Apple sniffed in the media because of the conditions in the factories of its suppliers in China. I'll say up front, I strongly disagree with degrading conditions for employees, but why was Apple vilified for this? Purely on principle, if I have a supplier for my company, I probably won't really care if his employees have a choice of three meals for lunch. Again, I'm against unfair terms, but why was this case carved into Apple's reputation? Today, no one remembers the name of that Chinese company, but almost everyone (especially Apple opponents) associates it with Apple. At the same time, Apple is one of the best companies in the world when it comes to corporate culture. But I digress a bit...
There is no doubt that South Korea is a developed country with a strong economy and, in any case, a high standard of living. Perhaps only elementary school children who have a problem with geography can doubt this. But of course, where there is a strong economy, power and money, there is also corruption, bribery, intrigue, lies and mafia. It doesn't surprise me, and somehow I didn't expect the business giant Samsung to be a saint.
Samsung wants to dominate the smartphone market while copying Apple. A copy will never, EVER beat the original.
Quite often actually. It is the so-called challenger strategy (others are leader, follower and focus - these are the basics of marketing...) Take Coca-Cola and Pepsi for example. Or the follower can sometimes surpass the leader, as Kofola did here.
As an Android supporter, I see the evil in Samsung. Their phones are stuffed with disgusting graphical launchers, they crash, lag, etc. I have a Galaxy Note myself, because it is the only Samsung that is seriously close to perfect, but every time I had the opportunity to try a pure-blooded Google Nexus, it was something completely different . One update after another, pure Android without ballast, just a fairy tale. In this, Apple has the upper hand, it makes HW and SW together. If only Google made Android, there would be no Samsung, LG, Sony, HTC, etc., it would be a fairy tale and Android would soon be breathing on iOS's heels. Otherwise, the article is nice, readable, and even though I'm not a fan of Apple, what's more, almost an opponent, I like to read opinions from the other side :-)
absolutely idiotic article.
Quite a terrible translation