The Samsung Group was founded by Byung-Chull Lee (Byung) in 1938, in Taegu, Korea, as an exporter of dried fish, vegetables, and fruits. Byung later established flour mills under the Samsung name (Korean for three stars). He also produced confectionery machines in this period (Refer Exhibit I for the companies under the Samsung Group as of 2006). In 1951, Samsung Moolsan, a holding company, was established, which later became Samsung Corp. In 1953, Cheil Sugar Manufacturing Co. was set up, which later became an independent company. In 1958, Samsung acquired Ankuk Fire and Marine Insurance (later renamed Samsung Fire and Marine Insurance) and DongBang Life Insurance in 1963 (later renamed Samsung Life Insurance).

In 1969, Samsung Electronics Manufacturing Co. (SEMC) was incorporated. In the 1970s, the Samsung Group forayed into the shipbuilding, chemical, and petrochemical industries. In 1974, the Group⁸ acquired a 50% stake in Korea Semiconductor Co., a joint venture between Korea Engineering & Manufacturing Co. and Integrated Circuit International. SEMC started exporting its products in the 1970s. In 1978, the Group's electronics exports crossed the 100 billion won mark.

In February 1984, SEMC was renamed as Samsung Electronics. In the mid-1980s, the Samsung Group began to concentrate on R&D activities.