Samsung exec blasts conglomerate bashing, `domestic logic`

“It’s regrettable that they repeatedly suffocate Samsung Electronics with domestic logic.”

This is what Samsung Electronics Vice Chairman Choi Gee-sung said on hostility against conglomerates in Korea at a news conference in Berlin Thursday. He was in the German capital to attend Europe’s largest electronics exposition IFA 2010.

“It’s unfair to chain the feet of Samsung Electronics, whose overseas sales are 10 times larger than domestic companies, with domestic logic," he said.

Though not elaborating on what domestic logic is, Choi effectively blasted the government and politicians for stepping up their conglomerate-bashing.

He frequently used the term “unfair” to express his frustration over his company being pressed by politicians and the government despite its stellar performance and profile as a global manufacturer of electronics goods.

“The time will come when Koreans will see Samsung`s role from a positive point of view,” said Choi.

The executive was also pessimistic over the government’s announcement to develop a Korean operating system. “Many say that if the government takes the lead in developing an operating system, we have no choice but to keep our mouth shut,” adding, “The development of the 4G communication technology Long Term Evolution was delayed because we have focused on the development of WiBro in accordance with government policies.”

Choi also blasted the government’s IT policies, saying, “Some say those doing business based on the government’s promises will go bankrupt.”

He also brushed off criticism that Samsung lacks competiveness in software such as operating systems. He said Samsung can produce mobile devices optimized for a range of operating systems including Google’s Android, Microsoft’s Windows Phone, and Nokia’s Symbian, and that had it not been for its software capability, Samsung could not have developed its own operating system Bada.

“The recent IT revolution based on mobile phones and the Internet is an opportunity for us to take a new leap forward,” he said, adding, “Since we have 20,000 software engineers and are making sufficient investment for the future, we will reap results within one to two year, not after a long time.”

Samsung became the world’s largest electronics company last year by posting 135.5 billion dollars in sales, he said, and the figure will rise to 150 billion dollars this year, adding, “Few companies this size can achieve a 10-percent growth.”

“Though the global economy continues to be sluggish, markets for smart TVs, smartphones and tablet computers will continue to grow,” he said.

Samsung will post 24 billion dollars in sales this year in the European market, 35 billion dollars in 2013, and 50 billion dollars in 2015, he predicted.

Choi brushed off the prospects of Samsung taking over Hewlett-Packard’s Web operating service, saying, “We`ll never buy it,” adding, “We`re preparing for more than that.”

jaeyuna@donga.com