Samsung Electronics Chair Lee Jae-yong has put the spotlight back on the conglomerate’s massive investment drive, reaffirming his pledge to expand domestic jobs and foster high-value-added industries.
During a business roundtable hosted by President Lee Jae Myung at the presidential office in Seoul on Tuesday, he vowed to push ahead with a 360 trillion won ($257.4 billion) investment in new growth sectors alongside its large-scale US commitments.
“Separate from our investments in the US, we will continue to invest in Korea to create quality jobs and nurture high-value-added industries," Chair Lee said during the meeting.
His remarks underscore Samsung’s intent to stay the course on its previously announced domestic investment plans regardless of any forthcoming developments in US investment.
In May 2022, coinciding with the inauguration of President Yoon Suk Yeol’s administration, Samsung pledged a total of 450 trillion won over five years to bolster next-generation growth drivers such as semiconductors, biotechnology and artificial intelligence.
Of that total, 80 percent, 360 trillion won, has been earmarked for domestic investment, marking a 40 percent increase from the company’s prior investment plans.
Samsung Electronics is currently investing 20 trillion won in its Giheung campus in Gyeonggi Province to build three semiconductor research fabs and a next-generation research and development facility covering 460,000 square meters. It is also expanding its Pyeongtaek campus to include advanced memory, foundry and system semiconductor fabs.
In the long term, Samsung plans to invest an additional 360 trillion won through 2047 to establish the largest semiconductor cluster in Korea, spanning 7.28 million square meters in Yongin, Gyeonggi Province. The first production line is set to begin operations by 2030.
In the biotech sector, Samsung Biologics recently completed construction of its fifth plant in Songdo-gu, Incheon, and is proceeding with the development of Plants six through eight.
The company had previously announced a roadmap to invest 7.5 trillion won over 10 years to further expand its biologics business.
Samsung’s investment initiative also includes a goal to recruit 80,000 new employees over the five-year span.
According to market research firm Korea CXO Institute, Samsung Electronics hired 10,960 new employees last year — a 20.11 percent increase from the previous year — with the majority expected to be domestic hires.
Industry observers are watching closely for any further details Samsung may unveil regarding its domestic investment roadmap.
“Given the geopolitical uncertainties, Samsung is likely aiming to build a stable ecosystem for advanced industries at home,” said an industry source who requested anonymity. “The conglomerate’s continued domestic investment is likely to influence the capital allocation strategies of other major firms.”
Meanwhile, the Samsung chief is scheduled to attend the upcoming Korea-US summit’s business delegation from Sunday to Tuesday.
yeeun@heraldcorp.com
