Samsung VC announces investment of $205.8 bn in 3yrs, recruitment of 40,000 in South Korea

Samsung Electronics Vice Chairman (VC) Lee Jae-yong has announced an investment of 240 trillion won ($205.8 billion) to be rolled out in the next three years. The announcement came within 15 days after Jae-yong walked out of the detention centre on parole. In addition to the large-scale investment, the tech giant has also announced a recruitment plan to directly hire 40,000 employees.

"The next 3 years after Covid-19 will be the time for new future to be reorganised," Samsung Electronics

With an aim to revive the economy, Jae-yong announced the largest investment in the company's history, ANI reported. Talking about the benefits of the investment Samsung said, "Through the investment, employment and Win-Win strategy, Samsung will improve couriers economy and Society to respond public expectations and wishes for Samsung." Jae-yong's current investment plan is 33.3 per cent larger than the 180 trillion won invested in 2018.

On Wednesday, Samsung Electronics also presented a road map to invest 240 million won. As per the report, the company will place its bids in semiconductor, bio, next-generation telecommunication, and new growth IT over the upcoming three years. A hefty part of the investment amounting to 180 trillion won will be invested in domestic industries, the report added. As a part of the proposal, another $17 billion is said to be invested to build a new chip-making plant in the US.

Samsung to make aggressive investments in semiconductors

In the first major investment announcement since Lee's parole, Samsung has decided to aggressively invest in the semiconductor business. "The semiconductor business is a 'safety valve' of the Korean economy and the core foundation business of the fourth Industrial Revolution," Samsung said in its statement. The megacorp has aimed to focus on the development of NAND Flash memory products with an addition of 200 layers and more to the existing ones, reported Korean JoongAng Daily. Besides, the company has also planned to expand the research and development projects of 5G and even 6G.

While talking about the massive recruitment plan, Chief Technology Officer of the Korean CXO Institute, Oh II Seon said that while major companies such as Hyundai Motor, SK, and LG are likely to eliminate regular mass hiring, Samsung's plan will boost employment opportunities for young people. "If Samsung hires 40,000 employees in the next 3 years, the total number of employees of Samsung's domestic affiliates will exceed 3,00,000 for the first time. It will be a big change in Korean employment, which has maintained between 2,50,00 and 2,60,000 in the past decade," Seon concluded.

(With inputs from ANI)

(Image Credits: AP/PTI/Representative)