Even With Note 7 Recall, Samsung Is 23% of South Korean Economy

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The recall of its Galaxy Note 7 has rocked Samsung. The disaster has pushed the company’s shares down. However, it is not it is not in any financial trouble. Parent Samsung Group is 23% of South Korea’s economy.

Business Korea recently reported:

According to business performance appraising agency CEO Score, Samsung represented 23% of the country’s GDP in 2012, and Hyundai Motor 12%.

Samsung Group had total revenue of over $300 billion. It ranks number 20 on the Forbes list of the world’s largest public companies. It owns Samsung Electronics, which makes smartphones and an army of other devices. Samsung Heavy Industries (SHI) is one of the largest ship builders in the world. The company has a huge Financial Services Division, which is in the bank, create card and commercial loan business. Samsung Group even has a business that makes medical devices.

A recent press release from Samsung seems light years away from the business well-known in America:

  • SHI won an order to build two offshore platforms from Norway-based Statoil
  • Contract covers 46,000 tons of oil production facilities, including the process platform and riser platform

SHI announced on the 30th that it had signed a deal with Statoil worth about USD 1.17 trillion to build two offshore platforms.

Under the deal, SHI will provide the two offshore platforms to be deployed at the oil field Johan Sverdrup located 140km off Stavanger, a port city in southwestern Norway. The platforms will be completed by the end of 2018.

The two platforms consist of a “process platform” for refining and producing crude oil and a “riser platform” for transporting the crude oil extracted from the oil well to the process platform. The individual platforms weigh 25,000 tons and 21,000 tons, respectively.

One of the world’s largest oil fields, the Johan Sverdrup is estimated to hold up to 1.7 to 3 billion barrels of oil. It is believed that it will account for about 25 percent of Norwegian oil production in the future.

Meanwhile, Samsung Heavy Industries has posted nearly USD 4 billion in sales to date; this figure includes the above-mentioned deal.

The people who operate the oil wells probably don’t even use Samsung phones.