S Korea: Samsung Electronics Vice Chairman Lee Jae-young to 'invest 240 trillion won and hire 40,000 employees'

Less than 15 days since Samsung Electronics Vice Chairman Lee Jae-yong was released on parole, the South Korean tech giant has announced a large-scale investment plan.

He announced the large-scale investment plan to revive the economy, supporting public opinion on his parole.

According to industry on August 25, Samsung Electronics announced a roadmap to invest 240 trillion won in semiconductor, bio, next-generation telecommunication, and new growth IT over the next three years. 180 trillion out of total investment will be invested in Korea domestic industries.

This is the largest amount ever, 60 trillion won more than 180 trillion won announced in 2018. Also, Samsung will directly hire 40,000 people over three years to solve the youth unemployment. The indirect employment effect from the investment will also reach 560,000 people.

"The next 3 years after COVID-19 will be the time for new future to be reorganized," said Samsung. "We are presenting Samsung's role as a company which can open new future and move forward with society."

It also explained, "Through the investment, employment and Win-Win strategy, Samsung will improve Korea's economy and society to respond public expectations and wishes for Samsung."

The investment and employment plan presented this time is analyzed as a response to Vice Chairman Lee's parole.

Vice-Chairman Lee returned to the management on parole on August 13, and reportedly confirmed investment plans by meeting with executives from Samsung Electronics and other major partners.

Previously, President Moon Jae-in said, "I hope to people understand his parole. In the severe crisis, many people expect his parole to overcome the crisis, especially in the areas of semiconductors and vaccines."

Justice Minister Park Beom-gye also said about Vice Chairman Lee's parole, "It is a decision that considered national economy and global economic environment in long-term COVID-19 pandemic situation."

Vice-Chairman Lee said, "I am well aware of the concerns, criticisms and high expectations about me. I will do my best." Businesses and financial industries are also paying attention to what investment plans will be announced.

In particular, Samsung decided to aggressively investment in the semiconductor business. This is because competition in the system semiconductor market has become fierce as U.S. Intel and Taiwan's TSMC have decided to significantly expand their investment in foundry (semiconductor contracted production) due to the reorganization of global semiconductor supply chain.

"The semiconductor business is the 'safety valve' of the Korean economy and the core foundation business of the 4th Industrial Revolution.

Once Samsung loses competitiveness, it's almost impossible to make a comeback. Therefore, Samsung's aggressive investment is virtually a survival strategy," Samsung Said. "Samsung is going to strengthen the leadership in the overall semiconductor industry by securing competitiveness in system semiconductor and maintaining absolute advantage in-memory technology."

Samsung's investment in the bio-industry is also noticeable. Samsung is aiming to realize the 'second semiconductor history' in bio-industry as securing 'bio sovereignty' has emerged as an important national task since COVID-19. Samsung Biologics is expected to achieve the top position in the field of contract development and manufacturing organization (CDMO) when its 4th plant is completed in 2023.

In addition, it is speeding up it's Win-Win' management by promoting ways to expand employment, train young people, and invest in start-up ecosystems.

In particular, Samsung is the only one among the four major groups to maintain its regular recruitment opening. Other major companies such as Hyundai Motor, SK, and LG tend to abolish regular opening and expand the immediate opening.

Oh Il Seon, Chief Technology Officer of the Korea CXO Institute, said, "If Samsung hires 40,000 employees in next three years, the total number of employees of Samsung's domestic affiliates will exceed 300,000 for the first time. It will be a big change in Korean employment, which has maintained between 250,000 and 260,000 in the past decade." (ANI/Global Economic)

( With inputs from ANI )