Virtual Reality (VR) is being focused by Samsung as the next targeted business after Smartphones. Not only will Samsung focus on selling Galaxy Smartphones, but it will also focus on forming VR ecosystem. There are also some concerns about converging VR with current businesses. Group of Samsung’s presidents attended Wednesday Presidents Conference Meeting that was held at Samsung Electronics Building in Seocho-dong on the 17th and had listened to a lecture from Executive Director Koo Yun-mo of Samsung Electronics’ Wireless Business Department’s Technology Strategy Group on the future of VR. He had brought up direction of VR business by introducing current trend of VR markets and application of VR. After working for Ericsson on multimedia and strategy marketing team, he joined Samsung Electronics in November of 2012 and has been looking for a new mobile business.

Executive Director Koo stressed that sense of immersion and sense of realism can be experienced from VR and that VR eliminates limitations that occur due to space and time. Regardless of competitive edge, new values can be created if VR is applied on education, traveling, medical treatment, vocational training and others.

On trend of VR markets, he summarized it by saying that IT industry including with announcement from Google on Cardboard is entering VR markets with M&A, investments, and hiring of experts.

Including Samsung Electronics, major businesses such as Google, Apple, Microsoft (MS), SONY, LG Electronics and others have been investing since last year on start-up companies that have VR technologies and contents.

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<Samsung Group’s presidents are experiencing VR. Group of Samsung’s presidents attended Wednesday Presidents Conference Meeting that was held at Samsung Electronics Building in Seocho-dong on the 17th and had listened to a lecture from Executive Director Koo Yun-mo of Samsung Electronics’ Wireless Business Department’s Technology Strategy Group on the future of VR. Group of Samsung‘s presidents such as (Starting from left) President Lee Sun-jong of Samsung Venture Investment, President Park Dong-kun of Samsung Display, Director (President) Kim Bong-young of Samsung C&T’s Resort Sector, Director (President) Chun Young-hyun of Samsung Electronics’ Memory Business Department are experiencing Samsung Electronics’ VR HMD (Head Mount Display) called ‘Gear VR’. >

Executive Director Koo chose establishment of ecosystem as a condition that will help Samsung Electronics to have success in VR markets. “3 steps of filming, sharing, and spending contents are needed.” said Executive Director Koo. “Samsung Electronics’ goal in VR business is to provide variety of high-quality contents and to secure competitive edges in its products and services.” Its goal is to have VR and an ability to propagate so that it can form VR ecosystem and not just simply applying VR to Smartphones.

“I see many possibilities where VR can be used for industries.” said President Kim Ki-nam who oversees Samsung Electronics’ semiconductors. “I expect that there will be many opportunities in semiconductors also.” President Park Joong-heum of Samsung Engineering said that he saw a glimpse of using VR for industrial world’s safety education system.

There were also advices for VR. President Park Joong-heum chose low resolution as a condition for diffusion while Director Chun Young-hyun (President) of Samsung Electronics’ Memory Business Department added that contents are key factors. President Yook Hyun-pyo of S1 and Director Hong Won-pyo (President) of Samsung SDS’ Solution Business Sector have decided to look into ways of applying VR to their businesses. President Hong expressed expectation by saying that there are high possibilities of applying VR to real-life situations that are related to IoT.

Samsung Electronics’ Wireless Business Department provided HMD (Head Mount Display) called ‘Gear VR’ and ‘Galaxy Note 5’ to group of presidents on this day to help them experience VR.

Samsung has been working on VR since early on. Samsung has partnered up with Oculus and released Gear VR last year. Samsung Venture Investment has been also investing in related start-up companies very actively. Type of businesses and areas are also diverse as Samsung is working with Japan’s Fove (device), Canada’s Bubble (filming), New Zealand’s 8i (contents), Baobab Studio (contents) from the U.S. and others. It recently has asked WEVR, which is a company in the U.S. that has VR contents sharing platform technology, about working together.

Samsung Electronics’ Mobile Enhancing Team that was established through group’s reorganization that had taken place in December of last year will focus on establishing VR ecosystem. It will strengthen competitive edges in hardware (HW) and software (SW) based on Galaxy Smartphones. Samsung Electronics is going to introduce new VR products along with Galaxy S7 at MWC 2016.

“Samsung Electronics is expanding its capabilities in VR based on its competitive edge in HW.” said Executive Director Koo Yun-mo. “Development of technologies to increase resolution, establishment of 5G mobile communication that is necessary to send contents and others will take place afterwards.”

Staff Reporter Seo, Hyeongseok | hsseo@etnews.com

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<■VR businesses that have received investments from Samsung ▲In June of 2015, Samsung put its investments, which are undisclosed, in Japan’s Fove that specializes in tracing pupils’ movements. ▲In September of 2015, Samsung invested $4.6 million in Canada’s Bubble that specializes in 360° cameras. ▲In October of 2015, Samsung invested $13.5 million in New Zealand’s 8i that specializes in tools that manufacture VR contents. ▲In November of 2015, Samsung put its investments, which are undisclosed, in Interlude, which is a company in the U.S. that specializes in mutual reaction-type contents and platforms. ▲In December of 2015, Samsung invested $6 million in Baobab Studio, which is a company in the U.S. that specializes in VR contents. ▲In February of 2016, Samsung invested $25 million in WEVR that specializes in VR contents sharing platforms. Reference: industries >
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<■Size of VR market ▲Size of VR market will grow from $138 billion in 2012 to $391 billion in 2020 to $1.4367 trillion in 2030. Reference: National Information Society Agency >