Samsung To Quit Newspaper Business
The $88 billion South Korean chaebol Samsung is getting out of its newspaper business with a recent boardroom decision to sell off the Seoul-based Joong-Ang Daily Newspaper, one of the countrys popular dailies. This is part of the conglomerates current corporate restructuring programme.
Three more firms will be merged with various larger affiliates to reduce the number of group firms from 28 to 24. These are the merger of the construction business Samsung Engineering and Construction Co into the flagship Samsung Corp, speciality chemicals business Cheil Industries Chemicals into the bigger Samsung General Chemicals, and Samsung Watches into another group affiliate.
Samsung plans to focus worldwide on the four core business areas of chemicals, machinery, finance, and electronics. Under the new system, each of the four core business subgroups will consist of individual affiliates involved in the same field.
Meanwhile, in an attempt to regain the top rank among Korean corporates from rival Hyundai, Samsungs latest foray has been into the passenger car segment with the setting up of Samsung Motors in 1995 and the proposed launch in March 1998 of its 2000 cc car - a modified version of the Maxima model from the stable of Japanese car maker Nissan with which Samsung has a technical collaboration.
In its previous restructuring programme announced in October 1994, the group had reduced, through mergers and divestitures, the number of group companies from 50 to the current level of 28.
Samsung has already sold off its foods business Cheil Foods and Chemicals which was the groups first manufacturing operation.
It has also got out of its textiles business by hiving off Cheil Synthetics Inc and thereafter its fast-moving consumer goods business.