May 27, 1998 in Social Responsibility News

SAMSUNG Electronics to Sell 45% Shares of HP Korea

SEOUL, Korea - May, 27, 1998 - Samsung Electronics Co., Ltd., and Hewlett Packard struck a deal to sell Samsung's share of HP Korea at the headquarters of HP in Palo Alto, California on May 26. This contract, signed between Mr. Jong-Yong Yun, President of Samsung Electronics, and Mr. Lewis E. Platt, Chairman of Hewlett Packard, amounted to US$36 million, or 45% of Samsung's share in HP Korea.

Samsung is reportedly planning to use the earnings for financial restructuring and cash liquidity to improve their holdings.

HP Korea is a joint venture which was launched in 1984 by HP (55%) and Samsung Electronics(45%). The company has a total capital of 16.1 billion won, 1,100 employees and a turnover of 898.6 billion won. HP Korea, the 142nd biggest company in terms of sales in Korea, has made considerable contributions to the local economy by introducing state of the art technologies and products from abroad. Currently standing as the 7th largest HP subsidiary in the world, the company has also made a big contribution to HP's headquarters.

Samsung and HP have agreed to keep their relationship alive, despite the decision to sell the shares, by continuing regular C. E. O. meetings. Both companies have a history of working together in long-term business projects through the joint development and procurement of semiconductors and peripheral equipment (memory and TFT-LCDs), workstations and metering equipment.

Mr. Lewis E. Platt said, "We have built a sound trust in Samsung as a company through our long-cherished partnership for more than two decades from 1977. The reason why we agreed to their selling of HP shares this time is to encourage them as they plan to introduce 5 billion dollars into the Korean economy as a means of overcoming the current national crisis." He added, " We will preserve our close relationship in the future."

Mr. Yun of Samsung Electronics also confirmed the continuing cooperative relationship by saying, "I feel grateful for what HPt has done to support our efforts to introduce foreign capital into the local industrial infrastructure. We have developed a close relationship and sense of trust, as well as maintaining a strategic partnership for decades. Samsung has sold PC monitor products and semiconductor components including memory chips and LCDs to HP factories all around the world. We hope that this sell-off will not destroy our long-standing relationship."

Hewlett Packard is among the world's leading information communications companies, specializing in computers, Internet/Intranet solutions, telecommunications products and metering solutions. The company records an annual turnover of 42.9 billion dollars and currently supports 125,300 employees.
In Samsung Electronics Co., Ltd., there are three main business units:
Multimedia & Home Appliances
Semiconductors
Information & Telecommunications.

Samsung Electronics Co., Ltd., a US $13 billion (1997) flagship company of Korean-based the Samsung Group, is a world leader in electronics, with operations in more than 60 countries and 85,000 employees Worldwide.

CONTACT:
Jenny Chung
Corporate Communications
Samsung Electronics Co., Ltd.
Tel. (82-2-727-7692 / 7823)
Email: jhnee@samsung.co.kr


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