The Origins of Samsung Motors: Beginnings to 1996

This chapter, “The Origins of Samsung Motors: Beginnings to 1996,” chronicles the trials and tribulations of Samsung Motors, beginning with a brief review of the rise to the top of the Samsung chaebol under its founder Byung-chull Lee (1936–1980). This is followed by sections discussing Samsung’s first attempt to enter the auto industry through an alliance with Chrysler Motors (1981–1988), and reviewing Samsung Heavy Industries’ (SHI) authorization as a commercial vehicle maker through an alliance with Nissan Diesel. During this period, the Samsung conglomerate also attempted to enter the car production business by taking control of Kia Motors (1988–1993). Thereafter, Samsung’s give and take with the Young-sam Kim Government is described, a compromise that would see Samsung relinquish its hold on Kia, win permission to enter the car business in December 1994, and culminate in the establishment of an independent car manufacturer, Samsung Motors, on March 28, 1995 (1993–1996). The chapter then concludes with a review of Samsung Motors’ ambitious plans at the onset of 1997, an agenda introduced without any inkling of the impending financial crisis that would wreak havoc on Asia.