Samsung to invest record $41.7 billion

By Korea Herald
  • Published : Jan 17, 2012 - 16:12
  • Updated : Jan 17, 2012 - 19:21
Conglomerate also announces plan to employ 26,000 people this year

Samsung Group announced Tuesday that it will invest a record 47.8 trillion won ($41.7 billion) and hire 26,000 new workers this year amid the sluggish global economy, especially in the European countries.

The 2012 investment figure is up 12 percent from the 42.8 trillion won injected in 2011. Last year’s figure was also the largest amount invested by the country’s biggest conglomerate since its establishment.

“The group decided to carry out record investments and hiring this year to secure new growth engines and contribute to the nation’s economic development in spite of the global economic downturn and uncertainty,” its officials said.

The announcement takes place after the group’s chairman Lee Kun-hee stressed numerous times recently that the group will make greater investments, employ more people and nurture new growth engines. The firm also plans to gear efforts toward expanding exports.

Of the 47.8 trillion won, 31 trillion will be put into investing in facilities, while 13.6 trillion will be earmarked for research and development, its officials said. The remaining 3.2 trillion won will be injected in capital investment.

However, a detailed plan that specifies how the spending would vary for its affiliates, including its flagship arm Samsung Electronics, was not unveiled.

Involving new employments, the conglomerate will recruit 9,000 college graduates, 5,000 experienced workers and 12,000 skilled workers that include 9,000 high school graduates, according to company officials.

Samsung is most likely to concentrate on launching new projects, such as medical device projects, and produce new products and new technologies.

In a related effort, Choi Gee-sung, vice chairman of the flagship electronics arm, told reporters last week in Las Vegas that it plans on taking over half of the group’s sales for this year.

Indicating that Samsung Electronics’ 2012 investment figure will exceed last year’s figure, the total investment sum is likely to go over the amount already listed on its yearly business scheme by the end of 2012, said Choi.

In the meantime, the 28 affiliates selected by the conglomerate as partners last year are expected to benefit from the large investment figure, industry sources said.

The group of 28 includes semiconductor equipment and other subpart makers and those related to display and mobile phone manufacturing. Of them, 19 firms are listed.

Samsung’s announcement is the latest in a series of conglomerates’ announcement of its investment and recruitment plans.

Last week, LG Group said it will invest a total of 16.4 trillion won ($14.2 billion) this year. The amount includes 11.5 trillion won in facility investment and 4.9 trillion won in research and development.

On Sunday, CJ Group said it plans to invest a total of 2.44 trillion won, an increase of 44 percent from last year, and hire 7,600 workers.

By Cho Ji-hyun (