November 9, 2005 – Samsung has announced a 47 trillion (US$44.9 billion) Korean won (KRW) investment plan aimed at vastly expanding the R&D capabilities of Samsung affiliates in the areas of electronics, mechanics, and chemicals. This plan also envisions the recruitment of some 30,000 new R&D staff by 2010.
The new plan, announced at the 5th Samsung Fair in Yongin, Gyeonggi Province, will focus on fortifying and expanding a set of 13 growth engines for Samsung’s technology-related affiliates going forward. These growth engines include business areas, such as high-capacity memory, next-generation display devices, mobile telecommunications, and digital TVs. High potential business areas are also included, such as system LSI, LED and other advanced lighting sources, precision optical devices and electro-mechanical components.
This new investment plan, which is part of Chairman Kun-Hee Lee’s “technology readiness management” strategy, will be a crucial component in helping Samsung to achieve several major business goals by 2010. By that time, Samsung expects to raise the number of its leading-market-share products from the current 21 to 50 products across all affiliates. Additionally, by 2010, Samsung aims to achieve consolidated turnover across all companies of 270 trillion KRW, with a target of 30 trillion KRW in pre-tax income. Samsung’s overall brand value is also expected to reach a target of US$70 B by 2010.