Samsung to invest 160 bln United States dollars, hire 40,000 for next 3 years

Samsung will put more than $22 billion toward tech like AI and 5G.                  Jung Yeon-je  AFP  Getty Images

Samsung will put more than $22 billion toward tech like AI and 5G. Jung Yeon-je AFP Getty Images

Samsung Group, South Korea's biggest family-controlled conglomerate, said Wednesday that it will invest 180 trillion won (about 160 billion USA dollars) and hire 40,000 more employees for the next three years.

Industry watchers said the company's latest investment plan is set to focus on building Samsung's capabilities in the chip segment, as global rivals, especially those from China, have been trying to catch up.

The company is one of the largest employers in South Korea, and is seen as one of the nation's shining lights to the rest of the world - a reputation that was severely damaged a year ago when company heir Jay Y.Lee was imprisoned on bribery charges.

Samsung Electronics Co. said Wednesday it plans to invest 180 trillion won (US$160 billion) over the next three years, apparently in response to the South Korean government's request to expand investment and employment. Most of that investment - about 130 trillion won of the total - will be spent in South Korea, the company said without giving further breakdowns. That sum is 6% greater than the investment made by the South Korean conglomerate over the past three years, according to Reuters. Its de facto leader Lee Jae-yong was convicted of corruption previous year, but released from prison in February. He is appealing the conviction. The company said it will "invest aggressively" towards its goal of being a global player in advanced markets for 5G chipsets and related devices and equipment.

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Samsung's second quarter profit dipped slightly to 11.04 trillion won, down from 11.05 trillion won a year earlier. The new investment plan follows the overhaul of the group's management at the end of 2017 and comes in the face of slowing sales at its biggest earner in recent years, smartphones.

"Kim's visit to Samsung. showed the momentum for chaebol reform has been all but lost", he said.

The announcement sent shares in Samsung's contract drugmaker Biologics and in its IT affiliate SDS up five per cent. Samsung Electronics' share price closed this morning flat.

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