Samsung Group Conglomerate Reinventing and Restructuring Business Empire

Samsung Group

Samsung Group, the biggest family-owned business empire in South Korea has massive success accredited ever since the company’s products began to hit the market. As a conglomerate, Samsung Electronics, Samsung C&T Corp and Samsung Life Insurance Co are primarily major companies that are indicating rocket performance in the past several years. The success of Samsung Galaxy is still continuing as mobile users prefer to choose Samsung Galaxy against top brands. The current market is steady and stable. As all the products of the company have entered the global market and have withstood the competition, so what is it that the company is newly working on? The very latest update is that Lee Kun Hee, business tycoon is retaining the control and ownership while reducing the cross shareholdings and working on reinventing and restructuring the company.

Samsung Group has 17 listed companies worth $ 22 billion and each company’s performance is quite transparent. Samsung Electronics has the lowest PRE (Price Earning Ratio) while Samsung C&T has helped in the construction tallest building in Dubai. Another group company, Samsung Life Insurance Co., is also being restructured and according to JPMorgan analysis, it is likely that restructuring the company will bring in a lot of implications. Notwithstanding the predictions, the stock in South Korean stock market has outperformed. Samsung Electronics has the lowest PRE in world’s 20 biggest companies and the company plans to tap the emerging market worth $ 2.7 billion.

IPO plans are primarily focused on restructuring the group and details of ownership structure is yet to be announced. It is quite gratifying to know that the company recorded sales turnover as $325 billion last year. Conveying the technology to the various parts of the world, the company has done exceedingly well in marketing and selling of refrigerators, washing machines and mobile phones. Samsung Galaxy has won the appreciation of customers throughout the world and there are still new upgraded versions coming up in Galaxy mobile phones.

The chief of the company, Lee Kun Hee, has been hospitalized at the age of 72 and it is likely that the entire process of limiting the share of stakeholders and aligning the interests of family will be revamped shortly. It is also seen that the officials of Samsung Group reaffirm the aspect of transparency and more accountability in keeping the company more professional and accessible in terms of company’s valuation.

In spite of stiff competition from Chinese companies, this conglomerate and giant of the Korean market has outperformed at the bourses and Samsung received an upsurge of 15 percent quoting highest in seven months. Foreign investors have added $ 367 million to holdings of the stock that truly indicates the strength and success of the stock. Samsung showed up an increase of 3.9 percent in stock price in the Kospi. So the Samsung Group is all set to be successful in reinventing and restructuring the business empire that has been established so far. There is certainly much to be experienced in the world of business and technology, particularly when the Samsung Group is inviting the attention of the world financial markets on a global level. The business empire is certainly going experience some new changes in the market capitalization, shareholdings and the interest share of family members in Samsung Group.

Opinion By Arundhathi Enamela

Sources:
Bloomberg

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