Support for New Government's Economic Revitalization with 587 Trillion Won Future Investment from Business Sector

Focused Investment in Advanced Semiconductors, Bio, Future Mobility, Robots, and New Materials

[Asia Economy Reporter Park Sun-mi] Major domestic conglomerates, including Samsung Electronics, will pour 600 trillion KRW into nurturing new industries that will become future growth engines over the next 3 to 5 years. The core sectors include advanced semiconductors, bio, future mobility, robotics, and new materials. This bold investment aims to secure a super-gap in future industries such as semiconductors and future cars, aligning with the Yoon Suk-yeol administration’s vision of a “dynamic economy led by the private sector and supported by the government.”

According to the business community on the 25th, the core of Samsung’s announced 450 trillion KRW investment plan over five years is “nurturing future growth engines.” The plan includes leading the achievement of a “semiconductor superpower” through proactive investment and differentiated technology, solidifying the memory sector’s “super-gap” status, and becoming a pioneering company that leads all three major semiconductor fields?memory, system semiconductors, and foundry?marking an unprecedented leap.

Furthermore, focusing investments on future growth engines such as semiconductors, bio, and new growth IT is expected to create jobs and foster an industrial ecosystem where not only large corporations but also small and medium-sized enterprises grow together. A Samsung official stated, “We hope that the success of our business will lead to the development of related industries and an increase in national income, establishing a virtuous cycle that drives national economic development.” For example, if Samsung’s foundry business, identified as a future growth engine, grows to become the world’s number one, it could have an economic effect similar to creating a company larger than Samsung Electronics within the country.

Along with Samsung, Hyundai Motor, Hanwha, and Lotte, which announced large-scale investment plans the day before, other companies within the top 10 groups such as LG and SK are expected to announce their investment plans soon, raising hopes for a positive impact on the employment market. Samsung plans to hire 80,000 new employees over five years and anticipates an employment inducement effect of 1.01 million people from this investment, with an additional 60,000 jobs created through CSR and win-win initiatives. Hyundai Motor Group is expected to maintain and expand domestic employment not only by advancing its existing internal combustion engine business but also by expanding dedicated electric vehicle production lines. Hanwha has announced plans to hire 20,000 people by 2026, and Lotte has expressed its intention to create 50,000 jobs.

The reason companies could announce such large-scale investment and hiring plans in line with the new administration’s launch is that they have been able to accumulate substantial cash reserves thanks to solid performance so far. According to a recent survey by the Federation of Korean Industries of the top 100 domestic companies by sales, as of the end of last year, the cash assets of the top 100 companies totaled 104.1 trillion KRW, a 16.6% increase compared to the end of 2019 before the COVID-19 pandemic.