Divisions of South Korean Companies That Are Not Present In Brazil
Distinguished around the world, these 5 companies do much more than it’s usually known. While manufacturing electronics, only a few of us would know that Samsung also builds apartments, or that Hyundai’s owner started as a businessman selling rice. In this article, there are five companies that offer diversified services other than what they offer in Brazil.
LG
Lucky Goldstar, or LG, is a South Korean company founded in 1947 by Koo In-Hwe (구인회). Starting as a chemical company under the name “Lak Hui Chemical Industrial Corporation” manufacturing makeup and toothpaste, it changed its name from Luck to Lucky Goldstar, while pioneering the Korean plastic and electrodomestic industry.
It started the LG Economic Research Institute in 1986 and built what it is now LG’s headquarters, the HQ Twin Towers, a year later. Thus, the corporation steadily expanded from engineering chemicals to providing telecommunication services in North Korea.
LG has several branches that are not present in other countries, including Brazil. These are:
- LG Life Sciences (mainly develops medicinal products)
- Household & Healthcare (owns several makeup, household chemicals, bottled water, and food brands)
- U+ (telecommunication company)
- CNS (information technology services)
- LG International Corporation
Hyundai
현대자동차 (Hyundai Motor Company) is another South Korean company that offers diversified services outside Brazil. Around the world, the company usually manufactures and distributes cars, but in some other countries it constructs buildings, shopping malls, operates credit cards, makes train wagons and renders insurance services.
Surprisingly, Chun Ju Yung (정주영) started Hyundai selling rice on post-war Seoul in 1934. However, under the pressure of the Japanese authorities, he was forced to close his business. Chun then sought help from his friend, Lee Eul Hak (이을학), who used to fix his pickup truck when he was still selling rice.
The two partners repaired cars, making it a successful business, until the repair shop caught fire around a month later, forcing them to close it down. They gave it another try, but it also closed because of the Japanese authorities. Then, Chun opened another repair shop called Art Service, where he had the idea of making cars of his own, but once more, it closed down.
After the retreat of the Japanese government, Chun finally established Hyundai Car Repair Shop, which grew up to be what we know today as Hyundai. The company operates other businesses that are yet to be expanded to Brazil:
- Assembling ships, cars, railway vehicles, steelways
- Manufacturing engines (for automobiles, mixers, and vacuum cleaners)
- Finance services
- Shipping
Samsung
Samsung started as a grocery store and a noodle manufacturer before the Korean War by Lee Byung Chul (이병철) in 1938 with only 20,000 won, or about 200 dollars. However, the foundation of today’s Samsung came from trading Korean products with China and expanding the company’s range in food produce. The exports were mainly dried seafood from the city of Daegu, while domestically, it processed and sold agricultural products.
As the business prospered, since the country’s electronic market was small and primitive, Samsung started manufacturing electronic products. In 1970, it launched its first television. While being outdated by its monochromatic display, it was more affordable than others, and the television was a great success. At one point, Samsung also manufactured cars, but as there was no positive reaction from the public, it was discontinued.
Samsung is now the biggest company in South Korea, since it has branch companies around the world. Not all divisions of Samsung are in Brazil yet. To name a few of the 26 companies that Samsung Group owns, they are:
- Hotel Shilla
- Samsung SDS, SDI
- Cheil Textiles
- Bioepis
- Samsung Corning Advanced Glass
- Techwin
- Samsung Publishing Co.
Lotte
Lotte is relatively small in Brazil compared to other companies. It only holds a small office managing the sale and import of Lotte products in Guarulhos since 2010. However, abroad, Lotte does more than produce and sell Pepero sticks and Anytime candies.
In 1965, Lotte Confectionery was founded by Shin Kyuk Ho, a Korean-Japanese businessman who wanted to end Hae Tae’s (another food company) monopoly on chewing gum. Selling 6 gums in a packet for about 2 cents, Lotte rapidly conquered most of the chewing gum market.
Launching its shares at the stock market in 1973, Lotte opened hotels, department stores, sold ham and beverages. Since then, it handles credit cards, makes aluminium wrappings, owns chemical companies and the fast food restaurant Lotteria, constructs buildings, distributes various products around South Korea, owns several supermarkets, and launched the famous Xylitol gum, which brought 1.1 trillion dollars on sales in 10 years.
Hanjin
Going up the mountains from the beach to São Paulo, you may have seen some containers with a big blue or white stamp, dashing the strange word “Hanjin.” Even though it is only a shipping company in Brazil, Hajin Group, which owns Hanjin Shipping (transports cargo around the five continents), owns part of Czech Airlines, Korean Air, a volleyball team called Incheon Korean Air Jumbos and two universities.
Hanjin, meaning “progress of Korean people,” started with 25 year old Jo Jung Hun transporting materials from Incheon. In two years, his business was so successful that he owned fifteen container trucks. Yet, its boost would come during the Vietnam war, when Hanjin transported military material back and forth Vietnam and the USA. With this profit, the company acquired Korean Air in 1969 and several other companies, both domestic and internationally.