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97 ! & ` D 03.1.22 2:1 AM Ø ` 1

ANNUAL

REPORT

1997

Challenge the
Limits.

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The Economic Challenge

The Competitive Challenge

The Consumer Challenge

At Samsung, our strategy of being consumer-focused, rather than attuned to producers, helped to mitigate the effects of the sudden downturn. This in no way minimizes the depth of the crisis,
both for Samsung and the increasingly interdependent global economy. We have responded by focusing on our core growth businesses.

World markets keep opening wider. Our global and localization strategy  made possible by long-term investments  is working. At home, and abroad, protectionism has ceded to competition. More than ever,
our creativity, innovation, and brand strength will be challenged.

The limits of consumer taste seem boundless, but actually, they re not. Consumers want smarter and custom choices, lifestyle options that suit them to a tee. The û
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