June 15, 2000 in Social Responsibility News

SAMSUNG's Business Initiatives in North Korea

As a part of its economic cooperative projects with the North Korea, Samsung has been producing garments worth US $15 ~ $20 million per annum on a consignment basis in the North since 1992. Samsung has been strengthening its activities in the North so far this yeary, aiming at promote consigned production of home appliances, joint-development of software, and publicizing the Samsung brand name. Consigned Production of Garments - Since Cheil Industries launched consigned production of garments back in 1992, the project recorded an annual turnover between US $10 ~ $15 million till 1999. Due to Cheil Industries' policy to reduce products with its own brands, however, annual turnover of the project is forecast to decline to US$8 million in 2000. - Cheil Industries was designated as a superior South North Economic Cooperative Firm in January, 2000, having received the Unification Minister Award Consigned Production of Home Appliances - Begin mass-production of color TVs, cassette recorders, and telephones as of May 2000 . Color TV : Daedong-gang TV Plant (Annual production capacity of 20,000 units) Carried in 2,000 units into the South on June 3 (2,000 additional units are anticipated to be carried in in June) . Cassette Recorder : October 5th Automatization Equipment Plant (Annual production capacity of 120,000 units) Carried in 3,200 units into the South on June 14 .Telephone : October 5th Automatization Equipment Plant (Annual production capacity of 240,000 units) Carried in 10,000 units on June 14 - Samsung is considering producing two more items--speakers and monitors-- in the North during the second half of 2000. Joint Development of Software - Samsung and Chosun Computer Center established Software Joint Development Center in Beijing, China, on March 22, 2000. - It is the first economic cooperative project between the two Koreas in the third country - 5 objectives of the joint development : document summarization, Linux application, computer games and game applications for wireless terminals, a Chinese character recognition software for cell phones, and a unified word processor applicable to two Koreas - Samsung is in charge of US$730,000 for the development cost, while North Korea dispatched 10 researchers to the joint development center for the development of software. Promotion of Publicity of Samsung Brand in the North - Installation of Samsung TVs in public areas . Completed installation of 100 exhibition desks for ruciATAE-Samsung> TVs in major public areas of the North in December 1999 : 11 units in such places as Koryo Hotel and Yangkakdo Hotel, Pyongyang, where civilians are permitted to visit, in addition to 89 units in North Korean government organizations . Samsung became the first private company to install its own brand in the public areas of the North since Korea was liberalized from Japanese rule in 1945. - Samsung also became the first company to install a large size full color electronic board in Pyongyang Gymnasium in May of 2000 : Attached with ruciATAE-Samsung> brand * Under the terms of consigned production, the North will provide workforce and facilities required for assembly of raw materials and parts supplied by Samsung.


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