Samsung sets eyes on boosting 'soft power' 07-29-2011 17:12
By Kim Yoo-chul
Samsung Electronics Chairman Lee Kun-hee Friday ordered his executives to boost “soft” technologies such as design, software and services, recruit top-class talent and increase the number of patents.
“Their need will be critical in the next five to 10 years so we have to start work on them immediately,” the 69-year-old tycoon was quoted as saying during his tour of an internal technology fair in Suwon, Gyeonggi Province, where the tech giant is located.
``There is no question that software technologies are increasingly important, more so than anything else. We should do more in these areas,’’ Lee said.
The in-company fair is named the ``Advanced Products Comparison Exhibition” designed to show Samsung’s future products-in-the-making.
It is the first time for Lee to come to the closed-door event since 2007 after he resigned as chairman of the nation’s largest Samsung Group in April 2008.
Last year, Lee resumed the chairmanship of Samsung Electronics after less than two years on the sidelines because of a corruption scandal.
He pledged more investment for software-related technologies, hiring of highly-experienced human resources and patents, citing them as main strategies for sustainable corporate growth in the next decade.
``Even in hardware technologies, Samsung should produce top-end products, more competitive than those by our rivals. Our products should be safe, thin and compact. If you aren’t ready, then you shouldn’t even start,’’ Lee said.
Samsung recently recalled some of its home appliances as it had found some defects and the chairman replaced a few chief executives to make them responsible for poor performance and in line with his own anti-graft drive.
Samsung’s top 20 executives, including his son and company President Lee Jae-yong and CEO Choi Gee-sung attended the event.
In efforts to seek its long-term growth and reduce its heavy dependence on volatile memory chips and flat-screen displays, Samsung had identified solar-cells, biosimilars, healthcare and medical equipment as its next growth engines that will get more investment allocation.
``This is a world of `patents.’ We have no time to hesitate in securing the necessary technologies and patents for new projects, as well as for existing businesses,’’ he said.
Samsung is increasingly becoming the target for patents from its international peers amid the explosive growth in demands for value-added consumer gadgets such as smartphones.
Samsung is the sole-competitor to break Apple’s firm lead in smartphones as its heavy bet on Google-powered Android mobile operating system (OS) has strengthened Samsung.
But Samsung is still paying a ``huge amount of money’’ in royalties in return for using patented technologies from its clients, pushing it to hire more patent experts for better management.
Because Samsung’s edge comes from manufacturing, not much from software-related developments, the Korean company has been engaging in heavy confrontations over patent rights.
As one example, Samsung has filed its complaint in late June, about two months after Apple sued Samsung for copying the design and feel of its iPhones and iPads with its Galaxy S line of smartphones and tablets, among other devices.
Samsung then responded with a countersuit that targeted Apple for infringing on five patents relating to wireless networking technology.
Apple again hit back with its own International Trade Commission (ITC) complaint in the United States in early July, which has sought to block the import of Samsung’s Galaxy S-branded smartphones and Galaxy Tab tablets.
From: The Korean Times
