By Daniel Etchells

Cho Yang-ho (left), President of Pyeongchang 2018, and Park Sangjin (right), President of corporate relations at Samsung, hold the agreement ©Pyeongchang 2018Pyeongchang 2018 signed an official local sponsorship agreement with Samsung Group, South Korea's largest conglomerate, at a ceremony in Seoul today.

Samsung Group has agreed to support Pyeongchang 2018 with a package valued at KRW100 billion (£62 million/$93 million/€84 million).

Last year, the company extended its worldwide The Olympic Programme (TOP) sponsorship contract with the International Olymic Committee (IOC) until 2020, covering the Wireless Communication category. 

Samsung, which comprises numerous subsidiaries and affiliated businesses, including Samsung Electronics, has provided products to the Olympic Games since the Nagano 1998 Winter edition.

"We are happy to have Samsung support in addition to the TOP partner agreement with Pyeongchang 2018," said Pyeongchang 2018 President Cho Yang-ho.

"We are confident that this sponsorship agreement will encourage other Korean companies to join as sponsors for the Pyeongchang 2018 Olympic and Paralympic Winter Games."

Samsung Group is the sixth company to sign a domestic sponsorship agreement with Pyeongchang 2018 following Korean Air, KT, Youngone Outdoor's North Face brand, Pagoda Education Group and Samil PricewaterhouseCoopers.

The deal between Pyeongchang 2018 and Samsung  is valued at KRW100 billion ©Pyeongchang 2018The deal between Pyeongchang 2018 and Samsung  is valued at KRW100 billion ©Pyeongchang 2018

"Samsung Group is thrilled that Korea has won the right to host the Olympic Winter Games," said Park Sangjin, President of Corporate Relations at Samsung.

"The Corporation demonstrates its support by extending the domestic marketing rights for Pyeongchang 2018 that are already in place through the TOP contract with the IOC.

"Indeed, Samsung has made a meaningful decision to provide additional support for the Pyeongchang 2018 Organising Committee to contribute to the successful Olympic Winter Games.

"This sponsorship agreement furthers our efforts to commit to social responsibility as a corporate representative of Korea."

Pyeongchang 2018 claims to have now achieved 41 per cent of its sponsorship target, despite the results of an audit published in December showing a massive shortfall in predicted sponsorship revenue. 

Pyeongchang 2018 had set its budget plans with an assumption that it would be able to earn KRW17.5 billion (£102 million/$158 million/€130 million) and KRW 67.5 billion (£392 million/$611 million/€501 million) in 2013 and 2014 each from sponsorship incomes, according to the audit results

But in 2013, it did not make anything and in 2014 earned only KRW3.5 billion (£20.3 million/$31.6 million/€25.9 million), 5.2 per cent of the expected income.

It instead borrowed KRW11 billion (£64 million/$99 million/€82 million) in 2013 and KRW10.5 billion (£61 million/$95 million/€78 million) in 2014, from the Government. 

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