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Samsung’s Profits Plummet After Paying Court-Ordered Fine

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October 19, 2005 - Net profits for South Korean company Samsung fell 30 percent from last year’s third quarter, thanks to a $300 million fine Samsung must pay as retribution for price-fixing the cost of memory chips between 1999 and 2002 (detailed here) The company set aside roughly 20 billion won ($192 million) for this purpose, and interestingly, also set about $100 million aside last year.

Despite the impact of the fine, sales rose 1.4 percent that quarter, up to 14.54 trillion won from 14.34 trillion won ($13.94 billion). Samsung’s announcement of its decreased profits also did not affect its stock.

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