Samsung SDI Pushes Ahead With Rechargeable Batteries

By Kim Yoo-chul
Staff Reporter

From laptops to cars, advanced batteries have become a major factor in innovation.

Samsung SDI hopes to compete in this fast-growing business by strengthening partnerships with the world's leading auto-related manufacturers, boosting battery production and simplifying its business structure.

Electronics makers have been scrambling to
develop or procure batteries that are smaller, reliable and more powerful to run mobile devices with an increasing number of functions.

Additionally, the main batteries fueling these gadgets ― based on lithium-ion technology ― also are being adapted to next-generation, eco-friendly cars.

Analysts say this has spurred technology companies to team up with automakers in alliances that are changing the manufacturing landscape.

Samsung SDI is the first mass producer of next-generation active matrix organic light emitting diode (AM OLED) displays, while it also makes plasma display panels and outdated cathode-ray tubes for emerging markets.

SDI has already spun off its AM OLED and LCD division in a joint venture with Samsung Electronics ― the new entity is named Samsung Mobile Display.

Now, SDI wants to transform itself as an authoritative battery maker by boosting production of lithium-ion batteries.

'Risk-Based Capital' to Change Paradigm of Insurance Industry

Allianz Life Insurance CEO, Cheong Mun-kuk

By Yoon Ja-young
Staff Reporter

The adoption of risk-based capital (RBC), an evaluation system designed to provide a capital adequacy standard related to risks and to raise a safety net for insurers, will change the paradigm of the insurance industry, Allianz Life Insurance CEO said.

"The adoption of RBC means much more than the strengthening of regulations on insurers' solvency ratio. It means the paradigm of the whole industry would change," said Cheong Mun-kuk, president & CEO of Allianz Life Insurance, in an interview with The Korea Times. Solvency ratios are measures to assess a company's ability to meet its long-term obligations.

Currently, the regulator simply assesses insurers' ability to pay out insurance money. With the adoption of RBC system, however, the regulator will be assessing the level of risk each insurance firm faces in asset management from 2011.

The new rule, which is used to set capital requirements considering the size and degree of risk taken by the insurer, is likely to pull up the solvency ratio of Allianz, which has managed its assets conservatively.

"In the past, it was OK to do business in a risky way as long as you generated profit. It won't be so anymore. The insurers will have to think about risk," Cheong said. As the risk will be linked with capital, risky management will result in shareholders having to pay more as companies will need to hold more capital.

Celebrity Marketing Buoys Anycall

The driving force behind the explosive growth of Samsung's mobile business over the past 10 years is the diverse, innovative and market-leading handsets and technologies, including its latest Ultra Edition series, and Mobile WiMAX technology. They have reinforced Samsung's position as a design-led, forward-thinking company that heavily invests in research and development to advance into the market and fuel consumer demand for innovative new technologies.

As a result of such efforts, the D500 and D600 models sold 10 million each in global sales. Samsung Mobile is now recognized as one of the most prestigious mobile brands in many countries including France, Britain, Russia and the United States, not to mention its home country South Korea, where it uses the Anycall brand.

It is not only the technology that has made today's Samsung and Anycall. Cleverly planned marketing strategies have also played a big part in the process, and now many of the world's celebrities are working as brand ambassadors for Samsung's mobile phones.

In March, Samsung teamed up with 11-time Grammy-winning singer Beyonce Knowles for its music phones.

``Samsung is thrilled to be working with Beyonce because we share a lot in common _ both of us have a strong passion for music, video and entertainment, and are considered icons in our respective industries,'' said Choi Gee-sung, president of Samsung's Telecommunications Network Business. ``We both aspire to deliver seamless satisfaction, bringing music to life.''

In Germany, it is football star Michael Ballack who promotes Samsung's mobile phones. The company kicked off a TV commercial this month starring Ballack, the captain of the German national football team and an iconic figure on the European sports scene.

``The introduction of Samsung's new Ultra Edition II range is a testament to our strategic focus on the premium segment,'' Choi said. ``In addition, Samsung's vision for the future of mobile technology is increasingly becoming a reality with our successful Mobile WiMAX demonstration, underlining the converged mobile device as the future hub of all communications.''

LG XCanvas-When Art Meets Technology

LG Electronics' XCanvas brand has enjoyed an ever-lasting popularity in the large-screen TV market, fending off challenges from formidable local and foreign competitors such as Samsung Electronics and Sony. While focusing on creating well-designed, feature-rich TVs, the company never forgets that technology alone cannot make a big difference _ it needs a brand name that has an impact on consumers.
The XCanvas Quidam and XCanvas Gallery series epitomize LG's brand power.

LG has paid tribute to the Canadian performance group, Cirque du Soleil, by introducing the XCanvas Quidam series that combines both technology and art. The Quidam sets come with a ring-shaped stand and concealed speakers, and sensors that are capable of adjusting the brightness level dynamically without being prompted by a remote.

The Gallery series incorporates wooden frames in two colors _ walnut and ash. LG sells the luxury TV set, priced at 9.9 million won, only on direct orders from consumers.

From the technological aspect, the LG XCanvas full-HD TV range allows viewers to truly feel the sensation through the screen, whether they are watching their favorite TV shows, sports matches or the latest blockbuster. To accompany the first-class technology and picture quality, the range is accented with a wave-inspired design that gives it a simple yet elegant look.

On the back of the growing popularity of the XCanvas _ especially the Time Machine automatic recording models, LG's market share is believed to have risen to more than 50 percent in the large-screen TV market.
With built-in hard disk drive, the Time Machine TVs automatically record the first hour of broadcasting once turned on. It helps people watch missed parts of live TV shows later even if they forget to record it when they leave. It is also capable of recording high-definition broadcasting.

The XCanvas series have also helped LG's design team win several prestigious design awards in the world, such as the Red Dot Award and iF Award.

The wave design at the bottom accentuates the contrast between elegant dynamism and precise geometry. Its LED has become its distinctive icon, its singular decorative element.

Arumchan Kimchi Enjoying High Popularity

The National Agricultural Cooperative Federation (NACF), also known as Nonghyup, has sold Arumchan Kimchi since the second half of 2002 and it has gained strong popularity among housewives.

Its sales have steadily risen to 10.3 billion won in 2006 from 9 billion won in 2005 and 7.2 billion won in 2004. NACF aims to raise its sales to 13.7 billion won this year.

The sharp rise in sales reflects the effect of the growing brand power of Arumchan. Its 11 plants produce kimchi and sell them under the joint brand name of Arumchan.

The joint brand strategy has proven successful so far. On top of brand power, the recipe for the success of the kimchi is the use of homegrown materials and a tough quality control system. It uses high-quality peppers, seasonings and cabbages under a standardized process.

NACF also put a greater focus on strengthening its marketing through its outlets nationwide and the Internet (www.arumchan.com). Customers also can get the kimchi at shopping.nonghyup.com. It also plans to expand exports to Japan, New Zealand and other countries via online sales.

Demand for kimchi in Korea is estimated at 1.5 million tons annually, with 500,000 tons worth 600-700 billion won being sold domestically. South Korea's demand for kimchi produced at plants is expected to continue to rise despite falling per capita consumption.

NACF, established in 1961 to improve the economic and social status of farmers, has pursued various projects to benefit farmers.

Nonghyup wants Arumchan Kimchi to help the nation maintain its status as the original kimchi maker. It also seeks to provide products that consumers can eat with trust, and to sell kimchi with identical tastes nationwide. Nonghyup also aims to diversify its kimchi market to Europe and Southeast Asian nations.

Arumchan Kimchi has won a series of top brand awards and been selected as a favorite brand among consumers.

Obama backs Seoul over Cheonan

President Lee Myung-bak speaks with U.S. President Barack Obama, seen in a file photo, from Cheong Wa Dae, Tuesday. During the 25-minute phone conversation, they discussed a joint response to the March 26 sinking of the South Korean Navy vessel Cheonan. Obama pledged his country’s full support for South Korea and its handling of the incident. / Korea Times

Clinton to visit next week to discuss joint response

By Na Jeong-ju
Staff reporter

U.S. President Barack Obama expressed his full backing for South Korea and its investigation into the sinking of the Navy vessel Cheonan near the inter-Korean West Sea border, Cheong Wa Dae said Tuesday.

President Lee Myung-bak and Obama spoke over the phone for about 25 minutes earlier to discuss a joint response to the naval tragedy.

"Obama told Lee that he fully trusts Seoul and backs its handling of the incident," the presidential office said in a press release.

Obama said Secretary of State Hillary Clinton will fly to Seoul next week to discuss the case, adding the U.S. will closely cooperate with South Korea to deal with the aftermath. Clinton is scheduled to hold high-level meetings in Beijing from May 24 to 25.

Following weeks of joint investigations by naval experts from the United States, the United Kingdom, Sweden and Australia, the South Korean military will announce the results on Thursday.

Sources say the investigators have concluded that the cause of the sinking, which claimed the lives of 46 sailors, was a surprise torpedo attack by North Korea.

President Lee plans to call the leaders of the countries involved in the six-party talks on Pyongyang's nuclear program this week to share the outcome and urge a joint international reaction to the alleged act of provocation, his aides said.

The Lee administration is seeking to refer the case to the U.N. Security Council, but it's not clear whether Obama would back the move.

Following the conversation between Lee and Obama, the White House said in a statement, "They emphasized the importance of obtaining a full accounting of the event and committed to follow the facts of the investigation wherever they lead."

It, however, stopped short of blaming North Korea.

"The leaders reiterated that North Korea must live up to its commitment to eliminate its nuclear-weapons program, comply with its international obligations under relevant U.N. Security Council resolutions, and put an end to belligerent behavior toward its neighbors," said the statement.

Secretary Clinton will make another visit to Seoul in July, along with Defense Secretary Robert Gates, for the first-ever two plus two security talks with their South Korean counterparts. The upcoming meeting is the result of an agreement made between Lee and Obama in Seoul last November.

The two leaders also agreed to hold a bilateral summit in late June on the sidelines of the G-20 Summit in Toronto, Canada, Cheong Wa Dae said.