Samsung starts spending spree
SAMSUNG Group has announced its largest ever investment plan, saying it will increase hiring just a week after the conglomerate’s long-serving chief announced his resignation.
Samsung said yesterday that it will boost investment 24 percent to 27.8 trillion won (US$27.9 billion) in 2008 in everything from semiconductor production to shipbuilding.
The investment will account for about 30 percent of the combined total of the 600 largest South Korean corporations this year, it said.
Exports by Samsung Group companies account for up to one-fifth of South Korea’s exports, according to some estimates. Key investments under the plan include 8 trillion won for semiconductors, 5.3 trillion won for flat panel displays and 1 trillion won for shipbuilding.
Samsung Electronics, South Korea’s biggest company, said on Friday that its first-quarter net profit rose 37 percent on strength in displays and mobile phones. It is the world’s second-biggest handset manufacturer after Finland’s Nokia Corp.
Samsung Heavy Industries Co, meanwhile, is the world’s second-largest shipbuilder after South Korea’s Hyundai Heavy Industries Co.
Samsung also said that group companies plan to hire 20,500 employees this year, an increase of 28 percent from last year.
Separately, Lee Kun-hee, who led the conglomerate for two decades, officially resigned yesterday from his position on the board of directors of Samsung Electronics, the company said.
Lee announced last week he was stepping down following his indictment on tax evasion and other charges.
Shares in Samsung Electronics rose 3.8 percent Monday to close at 716,000 won.