Samsung Promises Massive Investment and Job Creation

  • By Park Soon-chan

    August 09, 2018 11:01

    Samsung on Wednesday promised to invest W180 trillion into key businesses and hire 40,000 new workers over the next three years (US$1=W1,120).

    The massive investment will flow not only into its flagship semiconductor and display businesses but also into four new growth drivers. The country's biggest conglomerate hopes that artificial intelligence, fifth-generation mobile communications technology, biotechnology and automotive electronics can drive growth over the medium and long term.

    The sums mean that Samsung will invest most of the operating profit it makes over the next three years.

    Lee Jae-yong

    The pledge came after a gradual rapprochement with the government that saw President Moon Jae-in meet with Samsung chief Lee Jae-yong at the opening of a smartphone factory in India on July 9.

    Korea suffers from a drawn-out economic slump and record youth unemployment, and the government has made job creation a top priority.

    Samsung plans to focus more than 70 percent of the planned investment here to help with job creation. "We decided that new hires and investments are necessary for future growth and the public expects Samsung to play a bigger role in contributing to the economy," a Samsung executive said.

    Samsung's board set "achievable goals" for each affiliate, the executive added.

    The tech behemoth is also promising to share its technological know-how with small and mid-sized businesses to promote symbiotic growth, rather than steamrollering over them as it has been accused of doing in the past, while training 10,000 young software experts and expanding its support for small businesses to W4 trillion.

    Samsung initially wanted to make the announcement when Finance Minister Kim Dong-yeon visited a semiconductor plant in Pyeongtaek, Gyeonggi Province on Monday but delayed it after concerns arose that the government was begging Samsung for investments to create jobs.

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