Samsung, Lotte, Hanwha, Woongjin to Invest in Sejong City
By Kim Yoo-chul
Staff Reporter
Samsung Electronics will invest 2.1 trillion won (some $1.8 billion) in Sejong City from next year to 2015 to nurture new cash cows such as green energy and health care.
Kim Soon-taek, vice chairman of Samsung Electronics' new business division, said the group will invest more there, if the new businesses create a synergistic effect.
Five of Samsung Electronics' sister companies ― Samsung Electronics, Samsung LED, Samsung SDI, Samsung SDS and Samsung Electro-Mechanics ― will participate in the project.
Samsung Electronics is moving to invest 1.1 trillion won on renewable energy sources such as solar cells and light-emitting diode (LED) bulbs, while 330 billion won will go into health care including cutting-edge medical equipment.
It has allocated 150 billion won for building a data center for a telecommunication infrastructure. Samsung Electro-Mechanics plans to invest 450 billion won to boost production, Kim said.
"Still, it is premature to talk about the details of Samsung's biosimilar business in the new city. For that business, we will need more of a review," Kim said.
Biosimilars are versions of biopharmaceuticals whose patents have expired. Samsung reportedly plans to invest about 500 billion won ($389 million) in the biotech medicine business - which is another new growth opportunity for the technology firm.
The investment will be made in some 1.7 square kilometers in Sejong - about 150 kilometers south of Seoul. Samsung said some 15,800 new workers will be hired during the period.
Lotte, Hanwha, Woongjin
Other conglomerates have confirmed their multi-billion dollar investment proposals in the planned city.
Hanwha Group announced it will build research and development (R&D) facilities linking to solar cells.
"Four of our key affiliates will move into the city. By 2020, we will hire 3,000 new workers," a Hanwha spokesman said, adding it will invest 1.33 trillion won in energy-focused businesses.
Woongjin Group will invest 900 billion won with three of its key units including Woongjin Chemical scheduled to be relocated.
Lotte Group has also agreed to build a food lab facility in the city costing 100 billion won, the group said.