SEOUL: South Korea's Samsung Group said Wednesday it plans to spend a massive 43.1 trillion won ($38.3 billion) this year as it looks to outdo rivals in global markets and develop new businesses. The nation's largest business group will invest more than two thirds of the total - 29.9 trillion won - in expanding or building new plants producing semiconductors, liquid crystal display panels and other electronics and 12.1 trillion won on research and development. The new investment, up 18 percent from last year, is aimed at cementing "global market dominance of Samsung's major businesses," the group said in its 2011 investment plan. Projected investment in semiconductor plants amounts to 10.3 trillion won, followed by 5.4 trillion won each on those producing liquid crystal display panels and factories making organic light-emitting diodes. The group this year will hire 25,000 new workers - also a record and up 11 percent from 2010. "Uncertainties over the global economy still persist, but we have reached the decision... in an effort to beef up the global competitiveness of our flagship businesses," Samsung said in a statement. Samsung Electronics, the world's largest maker of flat screens and memory chips, is the standard bearer for the group, which accounts for nearly 20 percent of South Korea's gross domestic product. The world's second largest maker of mobile phones after Nokia posted a record third-quarter net profit in December as global recovery fanned demand for memory chips and handsets, including popular smartphones. The firm has strived to expand its presence in the lucrative smartphone and tablet computer markets with its Galaxy S and Galaxy Tab going head-to-head with US titan Apple and its market-leading iPhone and iPad. The investment plan is timely as industry rivals fearing a tough year amid falling memory chip prices and a saturating LCD market are shying away from large spending, said Greg Roh, analyst of HMC Investment Securities. "A major investment at a time like this can help Samsung really set itself apart from competitors by lowering price of key products or rolling out new gadgets," Roh said. "By ratcheting up investments when few others do so, you can expand global market share far faster than you do in normal times," he said. The group's aggressive investment comes as it tries to find new growth engines at the start of a third generation of family management. Samsung last year unveiled a plan to nurture new businesses including renewable energy and healthcare, with the goal of achieving annual sales worth 50 trillion won in 2020. Jay Y. Lee, the only son of chairman Lee Kun-Hee, was promoted to president of Samsung Electronics last December when his two sisters were also elevated at the group's key subsidiaries, which include hotel and textile affiliates. Samsung, which means "Three Stars", was launched in 1938 when Lee Byung-Chull, the son of a wealthy landowner, opened a trading company. Samsung Electronics began operations in 1969. The founder's son Lee Kun-Hee, now 68, led Samsung for almost 20 years and was widely credited with turning it into a global brand. He stepped down in April 2008 after being charged with tax evasion but returned as chairman of Samsung Electronics in March after receiving a presidential pardon. Lee Kun-hee, chairman of Samsung Electronics and the son of the conglomerate's founder, said in a New Year's message that change must be embraced. “Within the next 10 years, all the businesses and products that we now hold as Samsung flagships will fade,” Lee said in a statement Monday. “New businesses and products must take root before that happens.”
