Investment Plans for Korean Companies Unclear [Arirang News], Click “CC” for Scripts
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It’s hard to predict how much Korean conglomerates are planning to invest in their operations this year.., given that the strong Korean won and weakening Japanese yen are already dragging down exports.
But on this Wednesday, Samsung became the first to announce that it is likely to raise its investment… to what could amount to a record high.
Ji Myung-kil has more.
Samsung Group announced on Wednesday that its investment for this year could amount to more than 47 billion U.S. dollars.
If it goes through with the plan, it would be the largest amount in the conglomerate’s history.
In 2009, Samsung made an investment of 20-billion dollars.
By last year, it had raised that figure to 44 billion dollars.
According to a high-ranking Samsung official, the conglomerate plans to use a portion of this year’s investment to boost its semiconductor and mobile communications divisions.
The official also added that although the company is having a difficult time deciding the exact investment amount, due to currency rate fluctuations and uncertainty in the global economy, it is working with the presidential transition team to fulfill its social responsibility in times of economic hardship.
Earlier this month LG Group raised its annual investment to a record high of more than 18-billion dollars and Hyundai and Kia Motors postponed their investment plans until later this month.
Experts say that because these and other major conglomerates are holding off on solidfying their annual investment plans,… it will make it difficult for their subcontractors to lay out business plans of their own.
“Given the economic uncertainties and low consumer demand,
It is unclear whether other major Korean conglomerates apart from Samsung and LG will increase their investments for the coming year.
Ji Myung-kil, Arirang News.
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