Difficulties Encountered by Samsung during Installation – Webtekno

The founding of Samsung was an unusual not in the garage or college dorm room It took place in the wake of one of Korea’s darkest periods.

The story is about the difficulties of the Japanese occupation. of the Korean War Its destruction and the subsequent support of the American aid and Korean government.

The first half of the 20th century was not good for Korea.

After a century of political intervention, the Japanese Empire formally annexed Korea in 1910. turned it into a puppet state. As you can imagine, the Japanese occupation was brutal.

Despite the chaos created by American and Soviet military rule in 1945 Korean people were optimistic. One of these optimists was Kim, who was one of the few Koreans lucky enough to start his own business during the Japanese occupation. It was Lee Byung-chul.

Lee Byung-chul

Lee specialized in groceries export in 1938 named Samsung He started a small shipping company.

Samsung has been huge from the very beginning had a competitive advantage. Lee’s usefulness to the regime provided him with many privileges that most Koreans did not have, such as obtaining loans from Japanese banks.

While Samsung’s Japanese era was good for its time, newly independent South Korea presented tremendous opportunities for Lee.

Everything looked great for Samsung but then The Korean War broke out. Modern weapons have devastated major cities and industrial centers in South Korea. Many of Korea’s factories were damaged during the three-year war.

At the end of the war, Korea’s infrastructure and economy collapsed. The South Korean government to finance the country’s massive military expenditures. have to print more money prices have increased excessively.

hyperinflation so much so that in July 1953 Korea’s currency in circulation was 24 times more than it had been just three years earlier.

The future of South Korea, and thus Samsung, looked increasingly uncertain.

After the war, the USA Korean version of the Marshall Plan and the United Nations soon followed suit. the Korean government during the 1950s 3 billion dollars and the government selected companies worth investing in.

Samsung was among the companies that benefited from this aid. Of course, Lee’s close friendship with the first president of South Korea played a big role in this election. In fact, during Lee’s tenure, Samsung government aid received It was on an incredible scale.

The government usually imposes very strict restrictions on exports. Giving freedom to Samsung allowing it to become the largest exporter of scrap iron after the war. The transfer of American aid money to Samsung enabled it to start real production.

Buying rundown factories with American money and rebuilding them was such a profitable business that Samsung grew by an average of 93% per year throughout the 1950s.

However, aid It was just the visible side of the coin. The Korean government was also giving Samsung generous loans at very competitive rates. Lee was one of the main beneficiaries of government loans through state-affiliated banks.

The funny thing was that after he got the money, he turned around and started buying the same banks. Also in the insurance and chemical sectors Samsung, which started operating, had grown so much that even the revolution could not bring it down.

When the army overthrew the regime in 1961, Lee probably wasn’t too worried. Under new management Korean economy opened up and Samsung focused on export growth.

Lee had once again found favor with the Korean government. In 1969, the government reduced the taxes of companies operating in the electronics sector. reduce by 50% He passed a law that at that time there was only Samsung Electronics…

None of this would have been possible without Lee’s positioning close to political power. As a matter of fact, Samsung Even today, hand in hand with the government walking.

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