50 Trillion Investment

 

The Samsung Group’s investment scale is appearing to reach approximately 50 trillion won (US$46.23 billion) this year, which is about the same amount of money compared to last year.

It is reported that Samsung invested 42 trillion won (US$38.83 billion) in 2011, 45 trillion won (US$41.61 billion) in 2012, 48 trillion won (US$44.38 billion) in 2013 and 49 to 50 trillion won (US$45.31 to 46.23 billion) last year.

The Samsung Group doesn’t announce its investment scale by affiliates. An official from the group said on Jan. 14, “The scale is about the same as last year. The company doesn’t present the investment scale by affiliates or the analysis of the cause of variations.”

Right after a meeting between the government and presidents of planning and management teams in the top 30 groups early last year, when reporters asked whether the company would invest about 50 trillion won (US$46.23 billion), Lee Sang-hoon, president and chief financial officer of Samsung Electronics, said, “It will be about the same.”

Samsung Electronics appears to be investing in facilities with a similar size to last year. In a conference call in Q2 last year, Samsung Electronics said that it would invest a total of 24 trillion won (US$21.19 billion) in facilities, including 14.4 trillion won (US$13.31 billion) in the semiconductor sector and 5 trillion won (US$4.62 billion) in the display sector.

It is rumored that Samsung Electronics’ investments in R&D amounted to 14.78 trillion won (US$13.67 billion) in 2013 and about 15 trillion won (US$13.87 billion) in 2014.

Adding investments in facilities and R&D, a combined amount of investments of Samsung Electronics accounts for nearly 80 percent of its total investment of the group.

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