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Addendum, July 20:

Ruthless-Non-Jewish Samsung Wins . . .

Bloomberg has a further analysis of the merger deal and why Korea and Park Geun Hye was the loser in the deal:

Long before the South Korean media began indulging in anti-Semitism, Samsung’s recent effort to pull a fast one on its own investors was already firmly in insult territory. The company’s affront extended both to shareholders and to the Korean public.
The bid by Samsung’s de facto holding company, Cheil Industries, to buy Samsung C&T at a laughably below-market price was a naked power grab by the company’s founding Lee family, but Samsung so dominates South Korea that it managed on Friday to convince the subsidiary’s shareholders to ignore their own interests.
The merger marks a defeat for South Korean President Park Geun Hye, who won office in late 2012 with promises to rein in the family-owned companies that stifle Korean innovation. Friday’s vote was Park’s economic Waterloo, the moment her government decisively lost the fight against the oligarchs.

The article is here.

Samsung Versus the Ants & the Jews – A Never-ending Saga of Korean Shizz-biz

Greece is not the only suspenseful yes-or-no vote that has been on everyone’s minds as of late.

Samsung is having one heck of a knock-down shareholders fight. This Friday will be the day that Samsung C&T shareholders will vote on its future and “essentially the fate of the whole conglomerate and determine whether they approve its merger with Cheil Industries, the de facto holding company of Samsung Group.” (cite)

To summarize the situation:

Samsung Group, South Korea’s largest conglomerate made up of 67 companies, is controlled by the powerful Lee family via a complex web of cross-shareholding. Samsung C&T owns 4.06 percent of the group’s crown jewel, Samsung Electronics, with the value of its stake in the electronics giant standing at more than 7.6 trillion won ($6.7 billion) alone. Samsung Life Insurance controls 7.2 percent, while Cheil controls 19.3 percent of Samsung Life Insurance.
Last but not least, Jay Y. Lee owns 23 percent of Cheil, with his sisters Lee Boo-jin and Lee Seo-hyun controlling 7.7 percent each. Lee Kun-hee, the Samsung Group chairman, owns 3.4 percent.
Although Cheil has nothing to do with financial businesses on paper, it acts essentially like a financial holding company, controlling a significant stake in Samsung Life Insurance.
The merger between Samsung C&T and Cheil is certain to help the Lee family exert more influence over Samsung Electronics and is seen as a necessary step as the conglomerate prepares to make a generational change from the now-hospitalized Lee Kun-hee to his 47-year old son.

This is a very big deal, for example:

South Korea’s $422bn National Pension Service is poised to make one of the most high-pressure interventions in its 28-year history, with a vote that could swing the fate of a key merger in the Samsung group. . . The NPS holds big stakes in both companies — a situation that has highlighted the huge domestic clout of the world’s fifth-biggest pension fund, while heightening calls from activists for it to take a lead in defending South Korean corporate governance standards. . . The NPS is at the centre of the whole controversy — it’s created an awkward situation for them,” says Park Yoo-kyung, an investment adviser at the Dutch fund APG Asset Management, which holds a stake in Samsung C&T. . . Analysts say that this week’s vote is likely to be close and that the NPS — Samsung C&T’s biggest shareholder with 11.9 per cent — could decide the outcome. . . the NPS has courted controversy by making its decision in-house without turning to an advisory committee set up to assist with difficult voting decisions. That committee has shown willingness to oppose controversial management decisions, last month opposing a merger of two SK group companies citing similar objections to those made by Elliott in the Samsung case.

Line of marching ants with 11 different ant images

Samsung small investors are angry and are marching . . .

One shareholder, Elliott Associates LP (hedge fund), intensified its opposition to Samsung Group’s proposed merger of two units, a day before the U.S. hedge fund’s dispute with South Korea’s largest conglomerate went to court in Seoul. (cite) Elliot has also attracted the many small investors, referred to in South Korea as being “ants”, and have joined forces with Elliott.
According to Elliot, Cheil Industries Inc.’s offer to buy Samsung C&T Corp. is “unlawful” and creates “open-ended regulatory risks,” the fund headed by billionaire activist Paul Elliott Singer said in an online presentation on Thursday that laid out its case against the deal.
According to some analysts, this “showdown” between Samsung and Elliot Associates will shake up South Korea.

“Lawyers say the controversy will also prompt a rethink of the rules governing mergers between sister companies, which allowed the lowball offer in the first place. In any case, the backlash should make the chaebols less dismissive of outside shareholders.”

Meanwhile, South Korean media, in a typical demonstration of some of its totally irrational bias has managed to infuriate Jews:

jewish_bankerJewish organizations over the weekend denounced what they say are anti-Semitic statements in the South Korean media blaming Jews for attempts to block a corporate merger between two subsidiaries of the Samsung conglomerate. The Anti-Defamation League and the Simon Wiesenthal Center have called upon the Asian country’s government and on Samsung to repudiate the claims, which have appeared in a number of business publications supportive of the deal.
The target of the opprobrium is Paul Singer, the Jewish head of the Elliot Associates hedge fund, which owns a seven percent stake in Samsung C&T, which seeks to merge with Chiel Industries.
According to South Korean financial publication MoneyToday, “Elliott is led by a Jew, Paul E. Singer, and ISS [an advisory firm that analyzed the merger] is an affiliate of Morgan Stanley Capital International (MSCI), whose key shareholders are Jewish. According to a source in the finance industry, Jews have a robust network demonstrating influence in a number of domains.”
Meanwhile, Mediapen, another local publication, asserted that Jews are known to wield enormous power on Wall Street and in global financial circles” and that it is a “well-known fact that the US government is swayed by Jewish capital.” (cite)

Per Mediapen: “Jewish money, it reported, “has long been known to be ruthless and merciless.”

Mind you, it would be irresponsible to note that South Korean media also has long been known to be unprofessional and racist, especially considering their important role in revealing the hordes of HIV/AIDS infested, foreigners and the ongoing foreigner-driven crime-wave. The JDL and others have to realize that Koreans actually admire Jewish thought since the Talmud has been transmogrified into Korean.

Using Smartphones to Rob Us?


Imagine that there was a better way to help crooks steal more money . . .

Well, now there is a new way to do just that. Apple developed a new way to pay for things by using the iPhone and a new payment system called Apple Pay.  The idea is that when a person goes into a store, instead of using a credit card, they can pay, using their iPhone,  however there is a problem with this.

Brian Krebs, a touted authority on security in today’s online world says “Apple Pay makes it possible for cyber thieves to buy high-priced merchandise from brick-and-mortar stores using stolen credit and debit card numbers that were heretofore only useful for online fraud.” (cite) The banks that Apple has partnered with are now feeling this increase in fraud (6% and growing) and the pressure is on Apple to fix this though the problem is not really their’s to fix.  To be fair, the real real weak point in security is the bank since what is really happening is stolen credit cards are being put into Apple Pay and the banks are not catching this.  Remember all of those stolen credit cards from the Target credit card heist? Apple Pay allows theives to use this stolen information in a  new way (cite).  Avivah Litan (a fraud analyst with Gartner Inc.) believes that this problem will only become worse:

. . . This problem is only going to get worse as Samsung/LoopPay and the MCX/CurrentC (supported by Walmart, BestBuy and many other major retailers) release their mobile payment systems, without the customer data advantages Apple has in their relatively closed environment.

Samsung has wooed the same bank partners Apple did to start a mobile payment service (Samsung Pay), they have released the Galaxy 6 phone as being a means to conduct mobile payments (it is a nice phone too) and they released a security layer for Android called Knox, which enables the user to securely pay for things with their smartphone (preferably their Galaxy phone).  Samsung’s Knox was even certified as being safe and secure by a part of the American Government (the guys that want backdoors into everything).  Knox had been compromised, however Samsung is working to address this problem and has made progress,  Samsung wants their cyberpayment software to use a magnetic card reader, which is not encouraging since credit cards with magnetic strips are known enablers of credit card fraud. (cite and cite)   Samsung will also waive fees for using their mobile payment system, which does encourage use.

Business does make for unusual alliances, and so Blackberry and IBM have come together with Samsung to create SecuTablet – a modified Samsung Galaxy Tab S 10.5 bundled with security management software and a hardware encryption module, however the normally 500.00 USD Samsung phone becomes a 2,250.00 USD device called SecuTablet! (cite) This sort of device is not for the casual user that wants to buy something though, rather it is intended to be for environments that require better security (government, etc.).

Though Apple and Samsung may eventually perfect secure devices, the banks are still the biggest source of security worries, especially when they continue to use cards with magnetic strips or a chip and PIN system that has been hacked.  Even now, the Korean banking industry is finally getting around to blocking the use of mag-stripe plastic cards, in all Korean ATMs, from May.  (cite) There are still reports of credit card information being stolen by infected POP systems in business.  One place that has seen a rise in credit card fraud is Aspen, Colorado, since Aspen has so many holiday visitors from everywhere.  As one Aspen police detective notes:

A lot of these network intrusions are coming from the Ukraine, Russia, North Korea and China . . . It all comes down to the information stored on credit cards. Once a card is scanned at a business that information is sent to a server. If it’s infected with malware, that server sends the credit card information to criminals.

Considering how more and more large businesses are having their fee processing system infected with malware and how inept banks are at dealing with credit card fraud, companies like Apple and Samsung may eventually become more trustworthy than banks, especially if they don’t gouge their customers with processing fees and are more secure than banks are now in their transactions.

And then there’s Samsung

If you haven’t read it yet, Kurt Eichenwald’s piece on the Great Samsung—Apple War in Vanity Fair is a MUST READ.

Samsung does not come off very well at all, but to be honest, my impression after reading the story is that the Korean electronics giant should count itself lucky—it could have come off much, much worse.

And that’s all I’m going to say about that because, well, not to put too fine a point on it, but Samsung scares the shit out of me.

Meanwhile, earlier this week, Samsung rather unexpectedly apologized to workers who contracted cancer at the company’s semiconductor factories and their surviving family members (read that Businessweek piece in full). Of course, there’s still negotiating to do before Samsung, like, compensates anyone, but I suppose a start’s a start.

(HT to KB, Colin)

Samsung sues newspaper over report on Galaxy 5

Samsung has launched a KRW 300 million lawsuit against Korean IT newspaper The Electronic Times for running an article that questioned whether the company would be able to launch the Galaxy 5 on time:

Last month ET News published claims that Samsung was having trouble producing Galaxy S5 cameras putting the device’s April 11th launch in jeopardy. Samsung states that’s not true. The Korean publication stood by its claims, refusing to change the story when requested by Samsung.

Samsung is now suing for 300 million KRW – about $284,000. The lawsuit was confirmed to TechCrunch by a Samsung representative.

I will say this about the Electronic Times—they aren’t sitting back and taking it. Since Samsung issued its demand for a correction, the paper has been firing back with a flood of articles criticizing Samsung, reports Pressian. So much so that Samsung is accusing the paper of using articles as a weapon. The Electronic Times, meanwhile, is accusing Samsung of using its economic power to “tame” the media.

Now, I have no idea whether the report in the Electronic Times was true or not. That said, Pressian and Media Today note that rather than take its case to the Press Arbitration Commission, the usual practice in cases like this, Samsung chose to launch a lawsuit straight away just two weeks after the store was printed. If true, this might lead some to suspect there’s something else going on here, even if Samsung has legitimate cause for complaint with the Electronic Times.

Now, as somebody who a) likes Samsung products, b) views Samsung as a symbol of Korean drive and ingenuity and therefore wants them to succeed but c) is simultaneously scared shitless of the company because of stuff like this, I’d caution Samsung that in terms of PR, lawsuits of this sort often cause more harm than good. As Media Today notes, Samsung launched the lawsuit because it was worried the Electronic Times’ report would spread and impact sales. Since the lawsuit, however, the foreign press—including FOX News—and big tech bloggers have picked up the story. This is probably NOT the effect Samsung intended. To make matters worse, a story at AppleInsider compares the Korean electronics giant rather unfavorably to the Cupertino Fruit Company, which—assuming the report is true—almost never sues newspapers/blogs despite the countless groundless rumors that accompany the release of just about every iPhone model.

Samsung Selfie-Gate

So, Samsung arranged for some guy who plays for the Red Sux to take a selfie with President Obama. Samsung Tweets photo, which subsequently goes viral. White House gets angry:

The selfie was taken during a visit to the White House this week by the 2013 World Series winners. Ortiz, who has an endorsement deal with Samsung, put the photo on Twitter, and the electronics company re-tweeted the post to its 5.2 million followers.

But turning the event into a promotional exercise for Samsung was apparently not on the White House’s agenda.

“I can say that as a rule, the White House objects to attempts to use the president’s likeness for commercial purposes,” White House press secretary Jay Carney said Thursday. “And we certainly object in this case.”

HT to Anonymous Joe and others.

As you probably know, the record-setting Ellen DeGeneres selfie at the Oscars was also a Samsung marketing stunt.

Well, anyways, White House lawyers are now involved. Great.

Say what you will about the Samsung Selfie Strategy, but give credit where credit is do—Samsung’s marketing has come a long, long way.

Samsung’s Newest Anti-litigation Device: the Galaxy Gear Smartwatch

Samsung’s new smartwatch was recently presented in Berlin and, other than using Android, this honking big watch has about a 10-hour battery life (for ~300.00 USD), which makes this a very un-useful device, however, since Samsung has introduced their smartwatch BEFORE Apple’s anticipated watch, this makes this – more so – Samsung’s latest anti-litigation device since no one can accuse Samsung of ripping off Apple’s watch.  Read The Verge’s review of this product too, here.

The future (of anti-litigation products) is now.

Photo: The Verge

Photo: The Verge

The Apple vs. Samsung Chronicles: The US Steps in For the Sake of Innovation

Upon the advice of Michael Froman, the United States trade representative and the president’s adviser on international trade issues, the Obama administration has vetoed a federal commission’s ban that would have forced Apple to stop selling some iPhones and iPads in the United States next week due to an infringement on a Samsung-held patent related to transmission of data over cellular networks.

This is the first time since 1987 an administration has vetoed an international Trade Commission ban.

(Mr. Froman) wrote in his decision issued on Saturday that it was based in part on the “effect on competitive conditions in the U.S. economy and the effect on U.S. consumers.” . . .  Mr. Froman said his decision did not mean that Samsung was “not entitled to a remedy. On the contrary, the patent owner may continue to pursue its rights through the courts.”

Susan Kohn Ross, an international trade lawyer for Mitchell Silberberg & Knupp, said the administration’s veto announced on Saturday will effectively remove a major bargaining chip for Samsung that could have disrupted Apple’s manufacturing facilities for making iPhones and iPads.

As per the comments section on this report file on the NYTimes, one comment summarizes nicely:

Samsung copied Apple products and then tried to use patents in an illegal way to avoid the consequences: if they get away with this, they can force Apple to ignore the copying or else get products banned.

The Samsung patents at issue here are part of a wireless standard — you’re required to use their invention to connect to some networks. In order to be included in the standard, Samsung promised to license them in a fair and non-discriminatory manner. But for Apple, which used wireless chips from companies that had already paid the licensing fees, Samsung demanded enormous additional fees.

This exact issue has already been litigated in several courts around the world, and this practice has never been allowed. In fact, Samsung faces a potential fine of billions of dollars in Europe for doing this.

All of the other big technology companies support Apple in this matter, since allowing what Samsung has done would wreck the whole standards system.

A New York Times Blog article on this is here.

The Republic of Samsung and Roc Nation Want Your Data


As the current Edward Snowden Affair demonstrates, governments are willing and able to steal our information and invade our privacy if they feel it suits their needs – no matter what we may think.
Imagine that private companies had the same ability to snoop your phone numbers, phone calls made and mail addresses, in addition to your social media account names. Is this too much intrusion?

Jay-Z is a rapper that has made a deal with Samsung to make his newest album available free three days earlier than its release date to Samsung subscribers through a mobile application. He has done deals in the past with Nokia and Budweiser but this time the pre-release comes with some remarkable data mining on Samsung’s part.

Samsung bought a million downloads of the album, for $5 each and has coupled this to a mobile app that demands much more than the user’s patience, according to one article by Jon Pareles:

It (smartphone app) demands permissions, including reading the phone’s status and identity, which made some users, notably the rapper Killer Mike, suspicious: Does Jay-Z really need to log my calls? It also gathers “accounts,” the e-mail addresses and social-media user names connected to the phone. Those permissions are often part of a typical app package. This one got worse.
When installed, it demanded a working log in to Facebook or Twitter and permission to post on the account. “We would like fans to share the content through social networking sites,” a Jay-Z spokeswoman said by e-mail but the app was more coercive, still. (E-mail to Samsung Mobile’s customer service address for the app was returned as undeliverable throughout Wednesday.)
In the days before the album’s release through Samsung, the app promised to display lyrics — with a catch. “Unlocking” the lyrics required a post on Facebook or Twitter. I used Twitter, where hitting the “Tweet” button brought up a canned message: “I just unlocked a new lyric ‘Crown’ in the JAY Z Magna Carta app. See them first. hxxp:// #MagnaCarta.” The message could be altered, but something had to be sent. No post, no lyrics — for every song. Users were forced to post again and again, and frankly, a lyric that is going to show up almost immediately on the Internet isn’t much of a bribe for spamming your friends. . . . If Jay-Z wants to know about my phone calls and e-mail accounts, why doesn’t he join the National Security Agency? Nor is it particularly reassuring, to me anyway, that this example of data collection and forced speech was required by corporations — Samsung and Jay-Z’s Roc Nation rather than the government.

Regarding the unholy confluence of corporate money, data mining and bad rap, this can only get worse, IMHO.

And then there’s Samsung…

CNN tech guy Philip Elmer-DeWitt believes he may have “touched a nerve at Samsung HQ“:

On Saturday, following Samsung Taiwan’s admission that it had paid anonymous posters to trash a competitor’s products on Taiwanese social media sites, I posted a story about the growing suspicion among Apple (AAPL) investors that Samsung was engaged in a similar campaign against Apple — and that it might be affecting the company’s share price.

The post drew more that the usual number of comments. Twenty six hours later, we’re up to 343 messages and counting. Some readers supported the thesis. Some ridiculed it. Some attacked Apple. Some attacked me.

That kind of thing comes with the territory, although not usually in such numbers or with such vehemence. But what happened at about 2 a.m. EST — Sunday afternoon in Seoul, South Korea — was new.

In the space of a few hours, more than a thousand votes were cast on the DISQUS feedback system, voting down any comment remotely anti-Samsung and voting up anything — no matter how inane, in-artful or wrong — that disparaged Apple, the thesis, or me.

Sounds more like the work of Samsung fanboys or patriotic netizens than Samsung itself, but I suppose anything is possible.

Personally, I think Seoul Village might have it right:

Well, that’s a bit disconcerting

I love my Galaxy Note, but I really hope it doesn’t blow up in my pants:

Another Galaxy smartphone has exploded and injured its owner. Bupyeong Fire Station in Incheon on Sunday said a 55-year-old man reported the previous day that his smartphone battery blew up in the pocket of his pants.

The man said he was carrying a Samsung Galaxy Note along with a spare battery in his pocket before they suddenly blew up. He is being treated for second-degree burns to his right thigh.

Korea dominates Super Bowl commercials

Don’t blame me—blame Forbes:

Out of the roughly 37 companies spending a combined $300 million on commercials this Super Bowl Sunday, one country outside of the U.S. stands out: Korea.

Korean firms and even Korean culture are going to be everywhere this Sunday night as the San Francisco 49ers take on the Baltimore Ravens in Super Bowl XLVII.

The Samsung one could be worse:

KIA’s were so bad, either:

Then there are Hyundai’s ads, one of which features some band called The Flaming Lips, which I’m to understand is a big deal:

Ah, and then there’s PSY doing a pistachio ad:

What’s this world coming to?

Can Samsung be cooler than Apple?

That’s what the Korea Times wants to know:

Samsung Electronics is the global leader in mobile phones, televisions and computer memory chips.

However, what the Korean company really wants is to be admired, and by successfully injecting creative input into its smart products in recent years, it finally seems to be earning its stripes as an innovator.

The main source of inspiration in the technology industry in recent years has been Apple, the maker of the revolutionary iPhones and iPads and Samsung’s bitter industry rival.

Look, I know I come off as a Samsung fanboy sometimes, but I’m perfectly willing to concede that Apple is the gold standard of cool. I direct you once again to Milo Yiannopoulos:

Not to be rude, but when was the last time you saw a smouldering hottie merrily chatting away into an Android phone? That’s right, you never have. Because giving in to Android is just another way of advertising that you care more about PHP than people.

Hot people do not use Android. If they’re time-rich, cash-poor hipster cuties, they’ll be sporting that ubiquitous symbol of cool, the iPhone. It’s those apps, man. I don’t understand how some people make it past an artisanal card shop without Instagramming it for the boys back at the agency.
But they’re also utterly aesthetically insensitive, apparently not realising that every Android device ever made is hideously, hideously, hideously fugly. I mean, seriously: what is wrong with these handset manufacturers? It’s like their design brief was: “create a carbuncle”.

That’s what Samsung is up against. Personally, I like how the newer Samsung models look. At any rate, I don’t think they look like carbuncles. And if you’re tech-oriented and like kick-ass displays (like me), you’re going to like Samsung. But even I have to admit they’re nowhere near the user experience my iMac or iPad are. Is this because TouchWiz still leaves a lot to be desired? I don’t know.

LG pushes Apple into 3rd place in US market / Samsung finally recognized for innovation

So, I take it that iPhone 5 isn’t doing so hot:

LG Electronics has pushed Apple into third place in the North American mobile phone market.

LG rose to second place with a 13 percent share in December, overtaking Apple, which had 12 percent, according to Hong Kong market researcher Counterpoint Research.

LG was in second place in North America until the third quarter of 2011, when it ceded the position to Apple after the release of the iPhone 4S.

And to piss a bit more in Apple’s Wheaties, the Boston Consulting Group has named Samsung the world’s third most innovative company behind Apple and Google. And that’s not good for Apple—said Haydn Shaughnessy at Forbes:

Samsung is an innovator and has risen up the BCG rankings by 8 places. Behind the scenes Samsung invests heavily in its engineers’ innovation capabilities. While we’ve all been watching the court case, Samsung has gone from strength to strength. And is now neck and neck with Apple on revenues. 2013 could be the year we look to Korea for who is defining the future of tech.

I stand by what I said earlier—Seoul is the place where the future will happen.

One of the links in that piece is to a Salon story on how Samsung became the world’s biggest tech company—the part about the Note is instructive:

Consider the phablet. Back in 2011, when Samsung first unveiled the Galaxy Note—a 5.3-inch smartphone that was big enough to be a minitablet, hence the ugly portmanteau—the world’s tech pundits couldn’t stifle their giggles. Was it a phone? Was it a tablet? Was it a joke? Smartphone industry blog Boy Genius Report called the Note “the most useless phone I’ve ever used,” adding: “You will look stupid talking on it, people will laugh at you, and you’ll be unhappy if you buy it.” Gizmodo argued that the Note “isn’t just designed poorly—it’s hardly even designed for humans.” I couldn’t resist joining the chorus. With the Note, I wrote, Samsung was hoping to stoke a certain kind of envy in young men all over the world. The firm was banking on the fact that “when you whip a phone as big as the Galaxy Note out of your pants, some dudes will think you’re a god.”

But the joke’s on me and my smart-ass tech journo colleagues. Confounding our predictions, Samsung sold 10 million Notes in 2012, making it one of the most successful smartphone launches in history. Then, in the fall, Samsung launched the Galaxy Note II, an upgraded version with an even larger screen—and it promptly sold 5 million of them, and is on track to sell 20 million over the course of the year. The Note’s success has spawned a spate of copycats, with phablets becoming the hottest new smartphone category. Over at Quartz, Christopher Mims smartly argues that as ridiculous as it looks, the phablet is becoming the computing device of choice in the developing world. “If your budget is limited, why deal with two different upgrade cycles and two different devices, when you can put all of your money into a single device?” he argues. Mims believes that the Note’s success may even force Apple to build a rival phablet.

Since I switched to the Galaxy Note, I can’t even look at an iPhone without giggling. It’s just so puny, like a shriveled appendage or something.

Psy, the new face of Samsung kimchi refrigerators

Samsung announced Friday that they have contracted with Psy and actor-singer Lee Seung-gi to be the new faces of its kimchi refrigerator brand. Ads are set to air later this month.

Psy already banked Gangnam Style into ads for LG Uplus in August.

No word yet as to whether Apple will file suit against Samsung for using a pop star with a rounded body.

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