Samsung And Korean Economy

Samsung And Korean Economy

During 1940s, Lee Byung-chul founded Samsung Company in Korea. He started a trading company with about 40 employees which later on went on to become the world’s largest multinational conglomerate company accompanying more than 400,000 employees.

Samsung Company is not only a conglomerate company but also a huge influencing factor for the South Korean economic development. Since 1960s, it has been frequently influencing the Korean economy and has been the major driving force behind the “Miracle of the Han River”. Back then, Korea had no better economic status then that of Nepal. But now, Korean economy is at its peak and Nepalese economy is still struggling with the 25th April earthquake pouring more sorrows to the Nepalese economy. Having been the third highest remittance receiving country in the world, some economists even say Nepalese economy as the” Remittance Economy”.

In 1961, when Park Chug-lee seized power, he started an ambitious plan with a motive of turning the foreign aided Korean economy into a self-supporting industrial economy. It’s believed that he gave more emphasis to the domestic industries and hence he banned several foreign companies from exporting or selling electronics in South Korea in order to protect the domestic companies from foreign competition which included Samsung too. Well after that, the fate of Korean economy started to change in an unexpected way. Samsung started to manufacture high quality electronic goods which easily gained favour in the international market. After some years, it extended its brand and started exporting goods in a capricious way which eventually lead to a massive improvement in the country’s balance of payments. Current account deficit started to improve and after some decades the Korean economy became one of the world’s largest economies.

Many Korean economists even say Korea as the “The Republic of Samsung”.

In 2012, Samsung took over Nokia as the world’s largest mobile phone maker according to the unit sales. It is believed that Samsung heavy industry is the world’s 2nd largest shipbuilder and Samsung life insurance is the 14th largest life insurance company over the globe. According to the recently published data, Samsung affiliates about 20 % of South Korea’s total exports and has a revenue equal to the 17 % of south Koreas GDP of 1082 billion which is around 183 billion.

Whenever we happen to talk about Samsung, most often we picture a mobile phone but Samsung is more than just a mobile phone. It has been manufacturing a wider variety of products ranging from textile to most notable electronic products. The most popular Samsung electronics products in Nepal are mobile phones, laptops, microwave, tablets and digital cameras.

Every time you shuffle through the newspaper, you will surely get to read some news about Samsung products. Every year, Samsung comes up with unique and delighting high quality brand which automatically catches the limelight in the international markets. In the Nepalese market as well, Samsung’s products are known to be the most popular, especially the mobile phone.

A company which is able to allure all age groups is often found highly successful in the business world and for me I find Samsung as one. Samsung provides importance to all the age groups, from youths to the orderlies. And hence, it is highly preferred to other products. The delighting S6 to extra ordinary Tablet 4 to other many eye catching products have been highly prioritized by all age ranks across the globe.

Most people in Nepal are very fascinated with the extraordinary quality of Samsung products and every time it launches new products Nepalese market dives into it.