The World: Cheil aims to emerge from Samsung's shadow.(Cheil Communications)(Company Profile)

With offices in 18 countries, can the Korean giant emulate the success it has had at home with clients, Jonathan Barlow asks.

Cheil Communications Inc is not only the largest advertising agency in Korea, but, as an affiliate of its largest client, Samsung, it is also one of the more controversial. While it has dominated the Korean market through a host of domestic and foreign brands, so far it has been unable to replicate that success internationally with other clients. In recent months, Cheil has revamped many aspects of its international network, but will this be enough to see it emerge internationally from under Samsung's shadow?

Cheil is a full-service agency with public relations and exhibition arms, and clients outside Samsung that include Daewoo. It is part of a major Samsung-owned conglomerate, which was established in 1954 as a wool textiles manufacturer. Its sports marketing services include high-profile and hugely successful Olympic Games initiatives - an array of talents which no doubt appeals to clients the size of Samsung and Daewoo. With more than 30 years' experience as Samsung's in-house agency, its brand knowledge is unparalleled. It's also a major spender in the world's seventh-largest ad market, with billings of more than dollars 700 million.

With a net income for 2003 at dollars 42.2 million, Cheil's domestic superiority is undeniable. But while it continues to handle the vast majority of Samsung's Korean accounts, it has had to share responsibilities for the global brand marketing campaign for five years now, first with FCB and now, after a protracted account review, with WPP.

The very concept of an in-house agency riles many in the industry. The special status such agencies enjoy, and are perceived to enjoy, is a poor way to ensure the best creative results, critics say. Moreover, Cheil's lack of experience in the world of global advertising has weakened it creatively, they add.

This perception leaves Mac Jeffery, a Cheil vice-president who splits his time between Seoul and New York, somewhat perplexed. He points out that not only is Cheil publicly listed in Korea, with Samsung only a minority shareholder, but its relationship with this client/owner is by no means as comfortable as some believe. 'Samsung is not running a charitable operation,' he says. 'Cheil is still expected to reach performance targets.' He admits, however, to a 'slight advantage'.

'All things being equal between agencies, Samsung will choose Cheil, but we still have to pitch,' he says, citing Samsung's decision to award its global brand marketing campaign to WPP.