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In 1938, Lee Byung-chull (1910±1987) of the large landowning family in the Uiryeong county came to the nearby Daegu city and founded Samsung Sanghoe ( ), a smalltrading company with forty employees located in Su-dong (now Ingyo-dong). It dealt ingroceries produced in and around the city and produced noodles itself. The company

prospered and Lee moved its head office to Seoul in 1947. When the Korean War broke out,however, he was forced to leave Seoul and started a sugar refinery in Busan as a name of C heil Jedang . After the war, in 1954, Lee founded C heil Mojik and built the plant inChimsan-dong, Daegu. It was the largest woolen mill ever in the country and the companytook on an aspect of a major company.

Samsung diversified into many areas and Lee sought to establish Samsung as an industryleader in a wide range of enterprises, moving into businesses such as insurance, securities,and retail. Lee placed great importance on industrialization, and focused his economicdevelopment strategy on a handful of large domestic conglomerates, protecting them fromcompetition and assisting them financially. He later banned several foreign companies fromselling consumer electronics in South Korea in order to protect Samsung from foreigncompetition [citation needed ].

In the late 1960s, Samsung Group began the electronics industry. It formed severalelectronics-related divisions, such as Samsung Electronics Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co., and Samsung Semiconductor & TelecommunicationsCo., and made the facility in Suwon . Its first product was a black-and-white television set. In1980, the company acquired Hanguk Jeonja Tongsin in Gumi , and started to buildtelecommunication devices. Its early products were switchboards. The facility weredeveloped into the telephone and fax manufacturing systems and became the centre of Samsung's mobile phone manufacturing. They have produced over 800 million mobile

phones to date. [17] The company grouped them together under Samsung Electronics Co., Ltd.in the 1980s.

View of the Samsung logo inside the Time Warner Center in New York City .

In the late 1980s and early 1990s, Samsung Electronics invested heavily in research anddevelopment, investments that were pivotal in pushing the company to the forefront of theglobal electronics industry. In 1982, it built a television assembly plant in Portugal; in 1984, a

plant in New York; in 1985, a plant in Tokyo; in 1987, a facility in England ; and another facility in Austin in 1996. In total, Samsung has invested about $5.6 billion in the Austinlocation ± by far the largest foreign investment in Texas and one of the largest single foreigninvestments in the United States . The new investment will bring the total Samsunginvestment in Austin to more than $9 billion. [18]

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Samsung started to rise as an international corporation in the 1990s. Samsung's construction branch was awarded a contract to build one of the two Petronas Towers in Malaysia , Taipei101 in Taiwan and the Burj Khalifa in United Arab Emirates .[19] In 1993, Lee Kun-hee soldoff ten of Samsung Group's subsidiaries, downsized the company, and merged other operations to concentrate on three industries: electronics, engineering, and chemicals. In1996, the Samsung Group reacquired the Sungkyunkwan University foundation.

Compared to other major Korean companies, Samsung survived the 1997 Asian financialcrisis relatively unharmed. However, Samsung Motor was sold to Renault at a significantloss. As of 2010, Renault Samsung is 80.1 percent owned by Renault and 19.9 percent owned

by Samsung. Additionally, Samsung manufactured a range of aircraft from the 1980s to1990s. The company was founded in 1999 as Korea Aerospace Industries (KAI), the result of merger between then three domestic major aerospace divisions of Samsung Aerospace,Daewoo Heavy Industries, and Hyundai Space and Aircraft Company. However, Samsungstill manufactures aircraft engines. [citation needed ]

Samsung Group headquarters at Samsung Town , Seoul .

Samsung became the largest producer of memory chips in the world in 1992, and is theworld's second-largest chipmaker after Intel (see Worldwide Top 20 Semiconductor MarketShare Ranking Year by Year ).[20] In 1995, it built its first liquid-crystal display screen. Tenyears later, Samsung grew to be the world's largest manufacturer of liquid-crystal display

panels. Sony, which had not invested in large-size TFT-LCDs , contacted Samsung tocooperate, and, in 2006, S-LCD was established as a joint venture between Samsung andSony in order to provide a stable supply of LCD panels for both manufacturers. S-LCD isowned by Samsung (50% plus 1 share) and Sony (50% minus 1 share) and operates itsfactories and facilities in Tangjung, South Korea.

Samsung Electronics overtook Sony as one of the world's most popular consumer electronics brands in 2004 and 2005, and is now ranked #19 in the world overall. [21] Behind Nokia ,Samsung is the world's second largest by volume producer of cell phones with a leadingmarket share in the North America and Western Europe. [22]