[SEOUL] Ten years after Samsung Electronics Executive Chairman Lee Jae-yong orchestrated the boldest acquisition in South Korean corporate history, the "9 trillion won gamble" has officially paid off. Despite initial skepticism regarding the high price tag, Harman International has evolved into a cornerstone of Samsung’s future growth, doubling its revenue and establishing a dominant foothold in the global automotive electronics market.
From Skepticism to Stellar Success
When Samsung announced the acquisition of Harman in 2016 for approximately $8 billion (9.4 trillion KRW), many analysts questioned the synergy between a consumer electronics giant and an automotive components specialist. Today, those doubts have been silenced by record-breaking financials.
According to industry sources, Harman’s performance has undergone a dramatic transformation over the last decade:
Revenue: Surged from 7.1 trillion KRW in 2017 to 15.8 trillion KRW ($11.5 billion) in 2025.
Operating Profit: Skyrocketed from a modest 57.4 billion KRW to 1.53 trillion KRW.
Profitability: Achieved a robust operating margin of 9.7%, nearing the double-digit threshold.
Currently, automotive-related businesses account for nearly 70% of Harman’s total revenue, positioning the company as a top-tier global player in the digital cockpit and car audio sectors.
A Synergy of Hardware and Software
The success of the deal lies in the seamless integration of Samsung’s semiconductor and telecommunications expertise with Harman’s automotive legacy. Harman’s core solutions, such as digital cockpits and audio systems, now leverage Samsung’s 5G technology, Exynos Auto chips, and the SmartThings platform. This collaboration has allowed Samsung to define the "Moving Smart Device" era, where vehicles function as connected living spaces.
"The acquisition was a decisive move by Chairman Lee, who identified automotive electronics as Samsung’s next growth engine beyond smartphones," an industry insider noted. "It has successfully shifted Samsung's portfolio toward the high-value future mobility market."
Expansion: The "Next Big Deal"
Samsung is not resting on its laurels. Under Chairman Lee’s direction, Harman is aggressively expanding its capabilities through strategic M&A:
ADAS Acquisition: In December 2025, Harman acquired the Advanced Driver Assistance Systems (ADAS) division of Germany’s ZF Friedrichshafen for 1.5 billion euros ($1.6 billion).
R&D Investment: A new 230 billion KRW R&D and production hub is being established in Hungary to focus on autonomous driving software.
Audio Strengthening: Last year, the company acquired Masimo’s audio business for 500 billion KRW to maintain its lead in the premium acoustics market.
The Power of "Chairman Sales"
Chairman Lee Jae-yong has played a hands-on role in Harman's growth, personally meeting with CEOs of global automakers like Mercedes-Benz and BMW. This high-level networking has been instrumental in securing long-term contracts and expanding Harman’s client base among elite European carmakers.
With the automotive industry pivoting toward Software-Defined Vehicles (SDVs) and fully autonomous driving, Harman's strategic importance within the Samsung Group is expected to reach new heights. What was once seen as a risky "Big Deal" is now celebrated as the blueprint for Samsung's future survival and prosperity.
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