Major Business Groups’ Investment Estimated to be Over 34 Trillion Won

The combined investments of leading Korean business groups for this year are estimated to be 34.4 trillion won (US$31.0 billion).

Samsung Electronics, for example, is kicking off the construction of new semiconductor production lines in Pyeongtaek in the first half of this year at an investment of 15.6 trillion won (US$14.1 billion) in total. Samsung Display will invest 4 trillion won (US$3.6 billion) to expand its OLED lines, too. The entire Samsung Group’s investment adds up to 19.6 trillion won (US$17.7 billion). 

S-Oil will start facility expansion in Ulsan by spending 8 trillion won (US$7.2 billion) early this year, while GS Caltex will expand its facilities in Yeosu for 2.7 trillion won (US$2.4 billion) from the middle of this year. POSCO builds byproduct gas facilities with 200 billion won (US$180 million) while setting up a new plant for galvanized steel sheet production. Hyundai Mobis will build an eco-friendly plant in Chungju, and Hyundai Motor Company will expand its engine manufacturing lines. 

“The amount of 34.4 trillion won is for the projects that start this year, and will be spent over the course of a couple of years to come,” the Ministry of Trade, Industry & Energy explained, “Those started last year or earlier were excluded from the calculation.”

In the meantime, the government is looking to enact special legislation so that companies can be given more assistance in reshaping their business structure by M&As, the sale of business units, etc.