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Samsung’s investment plan should help the country’s economy: The DONG-A ILBO

Samsung announced on Tuesday a plan to invest 240 trillion won in the semiconductor and organic sectors over the next three years and to hire 40,000 new employees directly. The investment, which is far more than the 180 trillion won investment plan three years ago, is the highest record for a single company. The new plan was released 11 days after Vice Chairman Lee Jae-yong was released on parole. The plan aims to secure leadership in strategic businesses such as semiconductors in the global market and create a number of quality jobs in South Korea.

Samsung had hesitated to make an investment decision in the ultra-fine process required to catch up with Taiwan’s TSMC in the foundry sector and was hunted by Intel, which shows a strong will to manufacture semiconductors. Lee made a quick investment decision to further consolidate the company’s supremacy in the memory semiconductor space, with a 44 percent market share, and to become the No. 1 company in the foundry sector. It is good news that Samsung decided too late to make a large-scale investment in the semiconductor industry, which is the safety valve of the South Korean economy. The company also finalized a plan for investments in the organic sector, which has become one of the key next-generation industries, and developed a draft plan for mergers and acquisitions in the artificial intelligence, 5G and automotive electronics sectors that had been exposed.

In the first half of this year, most of the large companies in South Korea doubled their operating profits from last year, but hired few people. The number of young unemployed reached 300,000 last month. The announcement of Samsung’s plan to hire 40,000 new employees directly makes sense given the current situation. It is also commendable that Samsung has decided to invest 180 trillion won of the total investment in South Korea, which is expected to create 560,000 jobs. Given Samsung’s leadership in the South Korean economic sector, other companies could follow suit.

“It should fulfill the role of a company in relation to the economic and social challenges of the future,” said Samsung when announcing the investment and employment plan. The company’s decisions to maintain open recruiting while most large companies are phasing it out and to expand software education, which is helpful for young people’s job hunting, nationwide appear to have the same intent. The government should relax regulations and provide other assistance to allow Samsung’s expanded investment and recruitment to expand to South Korean industry.

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