Major South Korean conglomerates, including Samsung Electronics and Hyundai Motor, plan to invest a total of 34.4 trillion won ($31.5 billion) in their facilities this year, government officials said Wednesday.
In a meeting with top executives of 16 key conglomerates, Industry Minister Yoon Sang-jick said the government would provide full support for their investment and help push M&A deals.
The meeting was attended by representatives from Samsung Electronics, Samsung Display, Hyundai Motor, Hyundai Wia, POSCO, LG Electronics, LG Chem, Doosan Heavy Industries & Construction, Hyosung Group, Lotte Chemical, SK Hynix and Daewoo Shipbuilding & Marine Engineering among others.
The minister said he would take all necessary steps to remove any difficulties big firms may face in carrying out their investment plans.
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| Industry Minister Yoon Sang-jick (second from right) meets top executives of big firms on Wednesday. (Yonhap) |
At least 22.4 trillion won worth of projects were decided at an investment forum hosted by the Ministry of Trade, Industry and Energy in October, the ministry pointed out.
The investment plans also include Samsung’s planned construction of 15.6 trillion won semiconductor line project in Pyeongtaek, Gyeonggi Province.
“I urge you to take a long-term approach and make more active investments, despite the current difficult market environment,” Yoon added.
The minister’s call comes amid reports that the country’s large conglomerates may be sitting on more cash than ever.
Reports said earlier that the combined cash reserves of the country’s 10 largest business groups stood at 537.8 trillion won as of end-September, up 5.7 percent from end-March.
The minister’s call for financial soundness through restructuring and M&As boosted speculation that notable deals like Hanwha Group’s takeover of four Samsung Group affiliates could fructify this year.
Referring to Samsung’s November deal to sell its four chemical and defense units to Hanwha for 1.9 trillion won, Yoon said such moves can help improve their competitiveness while creating a vibrant business environment.
“I ask companies to actively engage in improving your corporate structure by shedding excess weight and building more muscle through M&As with other large companies and selling noncore business units to smaller firms,” he said.
By Suk Gee-hyun and news reports (monicasuk@heraldcorp.com)
