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A troupe of Samsung Group in charge of finding new business sectors, launched three years ago, has been dissolved for allegedly failing to produce tangible results.
All executives and high-ranking officials mobilized to the task force team Tuesday were confirmed to have returned to the group’s affiliates where they previously worked.
“The team was disbanded as of July 1 as it had fulfilled its duties in laying the groundwork for five new projects,” a Samsung official said. “The projects have been assumed by Samsung affiliates.”
The leave of Kim Soon-taek, who led the task force, from Samsung and the disappointing results of the initiatives triggered the breakup, market watchers said.
The family-run conglomerate announced three years ago that it would rake in a sales profit of 50 trillion won ($44 billion) and create jobs for 45,000 people by investing 23.3 trillion won in five business sectors: solar cells, electric vehicle batteries, light emitting diodes, biologics, and medical equipment.
“We cannot disclose how much investment out of the planned budget (23.3 trillion won) was made. But the investment for each project could be different from the expected amount or surpass it,” said another Samsung official.
“A plan is just a plan. It can change depending on circumstances,” he said.
He further explained some of the projects had become mature, and commercialized, so they have been taken over naturally by Samsung affiliates. For example the solar energy sector was taken by Samsung SDI, a renewable energy company.
The grandiose plans were welcomed and praised at the beginning by political circles and business sectors due to the expectation of a revived economy with the help of Samsung’s plans.
However, critics said they chose inappropriate sectors for new growth engines.
Coupled with the economic downturn and sluggish demand, the solar cell, LED, and electric vehicle battery sectors have struggled to pick up growth momentum.
As the team of rangers is said to have failed to complete their missions, it is expected to be an uphill battle for the firm to compete in the world market.
According to the Nihon Keizai Shimbun Monday, Samsung Group has the world’s No. 1 products in seven sectors including mobile phones, DRAM and NAND flash memory.
However, Chinese firms such as Haier closely trailed the Korean conglomerate.
“Samsung will continue to make efforts to find new core businesses,” the official said.
Meanwhile, Samsung Electronics, the largest affiliate of the group, is expected to disclose its preliminary profit, which will likely have an impact to some extent not only on the Korean stock markets but also the entire economy of the nation.
By Kim Young-won (wone0102@heraldcorp.com)
All executives and high-ranking officials mobilized to the task force team Tuesday were confirmed to have returned to the group’s affiliates where they previously worked.
“The team was disbanded as of July 1 as it had fulfilled its duties in laying the groundwork for five new projects,” a Samsung official said. “The projects have been assumed by Samsung affiliates.”
The leave of Kim Soon-taek, who led the task force, from Samsung and the disappointing results of the initiatives triggered the breakup, market watchers said.
The family-run conglomerate announced three years ago that it would rake in a sales profit of 50 trillion won ($44 billion) and create jobs for 45,000 people by investing 23.3 trillion won in five business sectors: solar cells, electric vehicle batteries, light emitting diodes, biologics, and medical equipment.
“We cannot disclose how much investment out of the planned budget (23.3 trillion won) was made. But the investment for each project could be different from the expected amount or surpass it,” said another Samsung official.
“A plan is just a plan. It can change depending on circumstances,” he said.
He further explained some of the projects had become mature, and commercialized, so they have been taken over naturally by Samsung affiliates. For example the solar energy sector was taken by Samsung SDI, a renewable energy company.
The grandiose plans were welcomed and praised at the beginning by political circles and business sectors due to the expectation of a revived economy with the help of Samsung’s plans.
However, critics said they chose inappropriate sectors for new growth engines.
Coupled with the economic downturn and sluggish demand, the solar cell, LED, and electric vehicle battery sectors have struggled to pick up growth momentum.
As the team of rangers is said to have failed to complete their missions, it is expected to be an uphill battle for the firm to compete in the world market.
According to the Nihon Keizai Shimbun Monday, Samsung Group has the world’s No. 1 products in seven sectors including mobile phones, DRAM and NAND flash memory.
However, Chinese firms such as Haier closely trailed the Korean conglomerate.
“Samsung will continue to make efforts to find new core businesses,” the official said.
Meanwhile, Samsung Electronics, the largest affiliate of the group, is expected to disclose its preliminary profit, which will likely have an impact to some extent not only on the Korean stock markets but also the entire economy of the nation.
By Kim Young-won (wone0102@heraldcorp.com)
