[Exclusive] Samsung Electro-Mechanics to Develop High-Rise R&D Building at Suwon Plant

In Consultation with Suwon City Hall... Agreed to Proceed from a Long-Term Perspective

Samsung Electro-Mechanics Suwon Plant view.

[Asia Economy Reporter Kim Jin-ho] It has been confirmed that Samsung Electronics and Samsung Electro-Mechanics are pursuing a plan to exchange land plots within the Suwon business site. This is interpreted as an effort to reorganize the currently separated Samsung Electro-Mechanics business site structure and to newly expand the business site buildings.

According to the business community on the 27th, Samsung Electronics and Samsung Electro-Mechanics have decided to pursue a long-term plan to exchange land plots within the Suwon business site located in Maetan-dong, Yeongtong-gu, Suwon-si, Gyeonggi-do.

An insider familiar with internal affairs hinted, "It is understood that they are reviewing a plan to exchange the Samsung Electronics land plot located next to Samsung Electro-Mechanics Complex 2 with the Samsung Electro-Mechanics Complex 1 land plot." In fact, it is known that Jang Deok-hyun, CEO of Samsung Electro-Mechanics, informed employees about reviewing such a plan during the 'Sseoltok (employee communication program)' held the day before.

Currently, the structure of Samsung Electro-Mechanics' Suwon business site is arranged in a vertically long rectangular shape. The main purpose of this land exchange promotion is to change this business site structure to be closer to a square shape. Additionally, it is analyzed that the plan aims to secure a pleasant working environment by constructing a high-rise building of more than 30 floors on the new site during the relocation process.

However, if the exchange proceeds according to this scenario, Samsung Electro-Mechanics' land area will be reduced to about half of the current size. Therefore, Samsung Electronics and Samsung Electro-Mechanics are reportedly in discussions with Suwon City Hall to resolve the essential 'floor area ratio issue' required for constructing high-rise buildings. A source said, "It is understood that this will be reviewed and implemented from a long-term perspective rather than being pushed immediately."

Meanwhile, CEO Jang is also known to have clearly stated that Samsung Electro-Mechanics has no plans to spin off its camera business division in the future. He is also reported to have added that the company will focus more on nurturing new businesses such as automotive electronics and robotics.