Samsung has officially formalized a large-scale collaboration with Hyundai Motor Group's executives to work together on future mobility solutions. This partnership, rooted in trust established over 40 years ago between the founders, has evolved into a strategic alliance encompassing automotive electronics, batteries, and semiconductors.
On November 9, Samsung held an 'HMG Appreciation Day' at its training center in Seocheon, South Chungcheong Province, welcoming Hyundai Motor Group executives. The event, themed 'One Harmony for the Future,' brought together 177 executives and their spouses, including Samsung Electronics Vice Chairman Jonghyun Jeon and Hyundai Motor Group Vice Chairman Jae-hoon Chang.
In his welcoming remarks, Vice Chairman Jeon emphasized, "Hyundai Motor Group and Samsung have been strong partners in writing the history of South Korea's industry together."
The collaboration dates back to November 1985, when Lee Byung-chul, the founder of Samsung, visited a celebration for Hyundai founder Chung Ju-yung despite being diagnosed with lung cancer. He brought a carefully selected piece of white porcelain as a gift. At that time, the two families were fierce rivals in the industrial sector, making this moment a symbolic indication of a potential partnership.
As the second generation took over, trust transformed into tangible business dealings. In early 2001, Lee Kun-hee, then chairman of Samsung, purchased Hyundai's Equus as the official vehicle for Samsung's executives. In response, Chung Mong-koo, then chairman of Hyundai and Kia, began using Samsung cards for corporate expenses. Following the death of Chung Ju-yung in March of that year, Lee Kun-hee personally visited the mourning site.
Just over a week later, the two leaders held their first unofficial meeting at Samsung's guesthouse. This meeting, representing the heads of the electronics and automotive sectors, led to a successful collaboration in 2009 with the supply of Sonata parts. The partnership later expanded to include joint development of intelligent semiconductors, a key technology for future vehicles.
Internally, Samsung views its automotive electronics business as a crucial future growth area. In 2015, Samsung Electronics established an automotive electronics team and acquired Harman for 9.4 trillion won the following year. Revenue from this division surged from 7.1 trillion won in 2017 to 15.8 trillion won last year, with operating profit reaching a record 1.5 trillion won.
Harman also acquired the advanced driver assistance systems (ADAS) division of Germany's ZF for 1.5 billion euros (approximately 2.6 trillion won) last December. This acquisition aims to enhance its competitiveness in the automotive electronics sector by securing world-leading technology in smart camera modules for autonomous driving.
Samsung Electronics Chairman Lee Jae-yong and Hyundai Motor Group Chairman Chung Euisun are consolidating their previously scattered collaborations into a cohesive alliance. The two leaders visited each other's facilities in 2020, including Samsung SDI's plant in Cheonan and Hyundai's Namyang Research Center. This collaboration has resulted in the supply of Samsung Electronics' Exynos Auto V920 processor for infotainment systems and a long-term contract for electric vehicle batteries in Europe. Last year, they also began joint development of batteries specifically for robotics.
In his remarks, Vice Chairman Chang noted that the collaboration between the two companies is expanding beyond vehicle components to include robotics and energy sectors. He stated, "The strengths built over three generations since our founding can create greater synergy when combined. I hope we can respect each other's strengths and work together to face future challenges."
* This article has been translated by AI.
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