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What Happens to Samsung If North Korea Destroys Seoul?

8/9/2017

 
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​I’m not sure why, but it seems that there isn’t much being written about what would happen if Samsung’s headquarters is destroyed. Seoul sits only 35 miles from North Korea, and technically, the Korean War never really ended. North Korea has been steadily building their armaments so they can launch thousands of rockets at Seoul on a moments notice. They’ve been preparing for decades to wipe out as much of Seoul as possible in a thirty minute window. They know they’d lose any war fairly quickly so the threat of leveling Seoul in the first 30 minutes is their way of holding hostages. 
One thing is for certain, if war ever breaks out between the United States and North Korea. There will be death in South Korea unlike the world has seen since World War II. The shockwaves of this conflict could send the world economy into a tailspin from which it would take years to recover.
 
Samsung is headquartered in Seoul. What would happen to Samsung if the majority of their executive management team was wiped out in one fell swoop?   Do they have any manufacturing facilities there? Would worldwide supplies of processor chips and displays be set back for years? What products wouldn’t exist if Samsung manufacturing goes down?
 
This is why Apple doesn’t like to stick all of its eggs in one basket when it comes to critical components. They split their chip orders between Taiwan Semiconductor and Samsung or split their displays between Samsung and LG, and so on. It’s kind of like not investing too heavily in one sector of the stock market. You try to diversify your risk. Even if you could save a bit more money by throwing all of your volume to one company, splitting your volume between two could prove to be immensely valuable in the event of some kind of disaster.
 
Hopefully, the latest round of UN sanctions will finally put the hurt on North Korea. Amazingly, both China and Russia voted for them. Kudos to Donald Trump for this major accomplishment.

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    Robert Perez

    Manufacturing and distribution analysis since 1993.

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