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Samsung plans $22 billion for artificial intelligence, autos

AP  |  Seoul 

Electronics plans to spend a whopping $22 billion over the next three years on artificial intelligence, auto components and other future businesses as the company maps out its strategy under the restored leadership of after he was freed from prison.

The announcement today by South Korea's biggest group was welcome news, coming at a time of deepening unease over slowing growth in Asia's fourth largest economy. It also highlights that South Korea's decades-old reliance on big businesses for jobs and investments is unlikely to end anytime soon since the country lacks a strong pool of small and medium-sized companies found in or

said it will spend the sum, amounting to 25 trillion won, on increasing the number of researchers to 1,000 at its centers around the world, ensuring it will be a in next-generation telecoms called 5G and on deepening its involvement in electronic components for future cars.

"expects innovations powered by AI will drive the industry's transformation, while the next-generation 5G telecommunications will create new opportunities in autonomous driving, the Internet of Things (IoT) and robotics," the company said in a statement.

Some of the funding will go to Samsung's

Samsung has been beefing up its contract drug making operations to help counter a potential decline in its

relies heavily on Samsung and its affiliated companies for investment and jobs, even after a corruption scandal that resulted in Lee's conviction for bribery. Lee was freed after nearly a year in jail but former and a close associate remain imprisoned for bribery and other charges.

Lee kept a low profile after his release in February but has been emerging in his public role in recent weeks.

The most notable appearance was in India, where Lee met with Moon Jae-in and Samsung announced plans to expand its production there.

Including the latest plan, spending by and its affiliates on research and development and capital expenditures over the next three years will amount to 180 trillion won ($161 billion), Samsung said.

Of that total, 130 trillion won will stay in South Korea, the company said. The rest will likely be distributed to China, and other production lines overseas.

Samsung also said Wednesday that it plans to create 20,000 more jobs over the next three years, on top of a previously announced 20,000 new jobs.

The new investment is expected to indirectly lead to about 700,000 jobs in related industries and businesses in South Korea, Samsung said without giving a time frame.

No company in can match Samsung's scale in investment or job creation. But even by Samsung's standard, the size of the investment announced Wednesday was huge. In 2010, under the leadership of Lee's father, Lee Kun-hee, who was then in charge of the group, Samsung had said it would spend 23 trillion won over the following 10 years on future businesses.

South Korean voters weary of scandals and critical of big businesses like Samsung elected Moon to replace Park after she was ousted.

Moon pledged to reform outdated practices and abuses in politics and in and appointed a of big conglomerates, known as "chaebols," to lead South Korea's fair-trade commission.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, August 08 2018. 20:35 IST