It is the first time for Samsung Card, a major credit card service provider in Korea, to expand overseas. The move is in line with the initiative from chairman Lee Kun-hee, who wants to make Samsung’s financial arm as global as its electronics business. Lee recently ended his short retirement from the group’s top position and retained his role as chairman of Samsung Electronics, the group’s flagship firm.
Samsung Card CEO, Choi Doh-seok held meetings with executives of the Thai firm, last week in Seoul, about launching the card business in Thailand, an insider said. “Choi and some other high-ranking executives were present. The atmosphere was very positive,” the source said.
The company’s public relations officials said Monday that it is an ongoing project and there is nothing to confirm, yet.
The source didn’t mention the name of the Thai company, but hinted it could be one of Samsung’s existing partners in the country.
Samsung is one of the most powerful global brands in mobile phones, TVs and shipbuilding. But its financial subsidiaries have focused on the domestic market with few branches outside of Korea.
Thailand is a natural choice to become the base camp of Samsung’s global expansion in the finance sector. The country is one of the largest economies in Southeast Asia, and Samsung has a strong brand name there, especially with its electronics and life insurance businesses.
Currently Samsung Life is operating a joint venture with Saha Pathana Inter-Holding, a major business group in Thailand. The Thai insurance business is believed to be a successful case of localization for the Samsung group.
The Thai joint venture will mark an important milestone in Samsung’s globalization efforts. Late last year, chairman Lee was reported to have reprimanded managers at the group’s financial subsidiaries, asking why they were unable to perform like their sister firms in the manufacturing sector on the global stage.
Samsung entered the credit card business in 1988 but it has no presence outside of Korea, except for a liaison office in New York. The firm’s CEO and vice chairman Choi alluded in his annual speech in January that from this year the firm would push for global expansion.
“When the market is saturated and the competition gets fierce, we need to develop new markets and new growth engines for the next five years or ten years to come,” he said.
Choi was formerly the CFO of Samsung Electronics. As one of the core executive members of the entire group, he was transferred to the credit card subsidiary early in 2009.
Samsung Card recorded 2.7 trillion won in revenues last year, down from 2.9 trillion won in 2008. But its net profit more than doubled to 603.8 billion from 257.7 billion
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