Web 2.0 Asia

Globally, Samsung is best known as an electronics company. But in its domestic Korean market, Samsung is really the country's largest company group that makes just about everything "from chips to ships." 

In fact, Samsung is so omnipresent in Korea that it's almost impossible for Korean citizens to escape from the brand. If you were a Korean, your life can literally start and end within the realm of Samsung Empire: You could be born in Samsung Hospital, go to Samsung-owned schools, get a job at one of many Samsung companies, get married and start a home at Samsung Apartment, drive a Renault-Samsung car, bring kids to Samsung-owned amusement park (Everland), manage personal wealth through Samsung's financial arms (that is, if you still have money left after buying all those Samsung products) -- and finally, just in case you want to know, Samsung Hospital offers just about the best funeral service for you and your family. 

When people outside of Korea hear the words "Samsung" and "car" in the same sentence, most of them wouldn't think too much outside of something like a car kit for Samsung phone. But actually Samsung used to be one of the five major automobile manufacturers in Korea, along with Hyundai, Kia, Daewoo, and SsangYong (an SUV specialty player). As the market consolidated, Samsung sold its major stakes in Samsung Motors to French Renault, ending up being a minor stakeholder in Renault-Samsung Motors. After losing some US$2 billion, Samsung's then-president Gun-hee Lee vowed Samsung will never set foot in the car business again, other than maintaining its shares in Renault-Samsung.  

But as Ssayng Yong Motors (part of China's SAIC Motor Company after acquisition) stumbles and nears bankruptcy amid global car industry meltdown, there are speculations about Samsung taking over Ssang Yong Motors (and possibly GM Daewoo, the Korean presence of the faltering GM, as well) to position itself as a major car company in Korea yet again. Justification this time? The ongoing electric vehicle frenzy. The whole industry is rapidly gearing towards electric vehicles - which require extensive cutting-edge technologies for batteries, fuel cells, semiconductors, etc. Guess who has some killer technologies for those - Samsung does.  

Samsung is strongly denying this speculation, but the current market situation makes it awfully easy and justifiable for Samsung to re-enter the car market. Actually, with all its electronics technology wizardry and deep pocket, Samsung might be in a good position to produce some nice EV's down the road. What do you think? If you were someone who controls Samsung's alleged $13bn of cash in bank, would you invest the money to venture into car business? If Samsung does become a car maker, who would be next on line, Sony? (Of course, that's assuming the company has taken care of the exploding batteries.)