Samsung is now well into The Next Phase of its growth and development. While we strive to be one of the world's most respected enterprises, our dream is to do even more. We envision a future where SAMSUNG will be known as a market leader. This will not be easy. The waves of change will be even greater, the rate of change will be faster, and the turbulence of transition will continue.

In today's world, some countries are surging ahead as major producers, while others are joining to function as a single economic bloc. This increased competition is requiring everyone to change substantially. This is a great opportunity, because those leading the change will emerge as front runners, while those resisting it will be forever relegated to second- or third-tier status.

Moving Forward

The 21st century is a time for harmony and interdependence; no one can develop alone. SAMSUNG's strength comes from our people's capabilities, passion, and dedication to a single vision. In addition, the intense competition in recent years has demonstrated one key fact: only the very best companies and best products survive.

SAMSUNG is now one of the world's distinguished brands. However, we are still working hard to reach even higher goals around the world, proceeding with a sense of urgency. If we are careless in our execution or complacent with what we have accomplished thus far, we could easily tumble to the bottom in a flash. In this sense, our struggle is with ourselves. In order to succeed, we must create the necessary management systems and develop our own technologies.

The way to the top is clear: the power of SAMSUNG is in its people and technology. They are the basis of SAMSUNG's legendary achievements and they will continue to provide the foundation for our success in the future.

A Renewed Emphasis on Global Standards

As the leading company in Korea, SAMSUNG will work hard to meet global standards in our corporate practices. SAMSUNG recently unveiled a new set of “management principles” to be followed by all employees. Among the principles emphasized are adherence to laws and ethics, respect for customers and shareholders, and responsibility to the community.

These new guidelines provide a uniform code across all companies in the group and are a regular part of employee education. Under these official guidelines, all employees must hold to the values of fair competition and accounting transparency, as well as the protection of individual and company properties. The principles also call for management emphasis on shareholder value, environmental friendliness, co-existence with the community, and improving our employees' quality of life.

Since taking the helm at SAMSUNG in 1987, I have emphasized the importance of ethical management. These principles of management are an extension of my philosophy, adjusted to a unified global standard.

We were very pleased when, in 2004, we once again received high marks on Fortune magazine's “Global Most Admired Companies” survey, climbing to No. 4 in the electronics category. Our management ethics contribute a significant role in achieving this ranking.

An Expanded Sense of Working Together

Our accomplishments could not have been possible without the help of our customers and society as a whole. Moving forward, we must further expand our practice of sharing, allowing local communities to benefit even more from our business accomplishments. In the past ten years, we have contributed greatly to social welfare, environmental protection, and the arts and sciences. Today, SAMSUNG employees are committed to be among the first to get involved in helping those in need in all our local communities. In this way, SAMSUNG will become a stronger, future-oriented enterprise exuding vitality, limitless creativity, and a spirit that can take on any challenge. As we pursue prosperity, we must also represent hope.

SAMSUNG's success has been built on five long-held values: Quality, Creativity, Competition, Culture, and Community. These values were emphasized at the inception of our New Management initiative and our commitment to them is just as strong today.

Most important of all are the talented, passionate People of SAMSUNG who express these core values, demonstrating them every day, in every part of our organization around the world.

Let us now put all of our efforts into accomplishing even more than we have done up 'til now. Growing from the roots established in the first ten years of our New Management, our mindset will be focused on preparing for the coming ten years on reaching far beyond the Next Phase to even more impressive achievements.

Kun-Hee Lee
Chairman, SAMSUNG