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S. Korean companies invest 600 trillion won to grow future industries

S. Korean companies invest 600 trillion won to grow future industries

Posted May. 25, 2022 08:05,   

Updated May. 25, 2022 08:05


South Korean companies including Samsung, Hyundai Motor Company, Lotte, and Hanwha, announced a 600 trillion won massive investment plan to facilitate advanced development of future industries. The investment plan will be the new drivers for growth of the Korean economy, such as semiconductors, biotechnology, mobility, and energy sector, aiming to gain competitive edge in the global market.

For the next five years, Samsung will invest a total of 450 trillion won, of which 360 trillion won will be invested in South Korea. The company will maintain a super gap with its competitors in the global memory semiconductor market and develop global competitiveness in semiconductor fabrication and foundry. It will also continue aggressive investment in biotechnology, artificial intelligence, and 6G communication system.

Hyundai Motor Group, Kia Motors, and Hyundai Mobis have unveiled a blueprint to invest a total of 63 trillion won in South Korea for the next four years. The companies will spend 16.2 trillion won to in order to advance environment-friendly industries, electric vehicles, hydrogen fuel cell vehicles, and hybrid cars, and the future air mobility and autonomous vehicles will be areas of investment as well.

Lotte will invest 37 trillion won for the next five years to strengthen the competitiveness of both existing and future industries by building a new biologics plant and premier shopping malls. It will also make investment to boost local economies, create an environment conducive to future industries, and foster start-ups. Hanwha will also invest 37.6 trillion won, of which 20 trillion won will be invested in South Korea, to enhance competence of the energy sector, achieve carbon neutrality, and develop the defense and space technology.

Behind aggressive investment plans announced by major Korean companies is a sense of readiness against the reorganization of global economic structure driven by the strengthening of the KORUS economic and technology alliance. With a focus on building strengths of cutting-edge technologies and developing global competitiveness by mobilizing full investment potential, the investment plans also show the businesses’ sense of responsibility in the society by creating more quality jobs in future industry sectors.

Choong-Hyun Song balgun@donga.com · Do-Young Kwak now@donga.com