Top 30 conglomerates to invest W149tr this year

Korea’s top 30 conglomerates pledged to increase investment in their respective sectors such as electronics, automobiles and displays by 7 percent to 149 trillion won ($132 billion) this year, the Ministry of Trade, Industry and Energy said in a meeting with corporate executives on Thursday.

They also plan to increase hiring of new employees by 1.5 percent to some 128,000 in 2013, of which some 47,000 high school graduates will be recruited.

“We are happy to hear of the investment and employment plan, and I will do my best so the plan will be put into action,” said Commerce Minister Yoon Sang-jick.

Yoon urged the big businesses to take the lead in boosting investment and employment during the economic slowdown, and help realize the incumbent administration’s goal of 70 percent job growth.

The minister said that it will set up a committee consisting of government and private corporate officials to help companies implement their plans without delay through policy and regulatory revisions.

Of the top four groups, Samsung has reportedly told the Finance Ministry of its plan to invest 49 trillion won in research and development, facility advancements and equity investments.

Hyundai Motor Group will invest 13.8 trillion won mostly for R&D, while SK has already unveiled its 16.6 trillion won investment plan.

LG, the fourth-largest chaebol, will make a record investment of 20 trillion won this year, of which 14 trillion won will be spent on facility upgrades, and the rest in R&D.

However, it remains to be seen whether the top conglomerates will keep their promise given that their investment fell short by 8.5 percent from what was initially planned early last year when they pledged to invest 151 trillion won.

Kim Jong-joong, president of Samsung’s corporate strategy division, said the company would increase recruitment, but its investment would need to be flexibly implemented, indicating a possible change of plan in accordance with the global economic conditions.

The Ministry of Strategy and Finance lately has projected the Korean economy to grow 2.3 percent this year, slower than the 2.8 percent growth forecast by the Bank of Korea.

By Park Hyong-ki (hkp@heraldcorp.com)