By Kim Yoo-chul
Samsung Electronics has asked Indian Prime Narendra Modi for tax exemptions on imported materials for smartphones and special customs treatment, in promising to make big investments, a senior Samsung executive said Wednesday.
"We pointed out to Prime Minister Modi that we are the second-biggest corporate taxpayer in that country," said Park Sang-jin, the firm’s external cooperation president, Wednesday.
Park said that it plans to invest more in smartphones and to closely team up with the Indian government for "smart city" projects.
"Samsung sees a decline in demand for smartphones in China. But penetration rates are quite low in India, making the market attractive," the Samsung executive said.
Samsung Electronics was the top smartphone manufacturer in India. It has been operating handset factories in Noida and Chennai since 1995 and 2007, respectively.
Vietnam, where Samsung runs a massive technology park, is expected to be about $25 million for the first five years, or $5 million per year.
Since some raw materials available in India are not up to par, the Korean firm is seeking to have a list of imported construction materials given preferential tax treatment.
But Samsung mobile chief Shin Jong-kyun refused to comment whether Samsung has a plan to build its third handset factory in India if key conditions are met.
After Wednesday's regular meeting with presidents of Samsung affiliates in its Seocho Tower, southern Seoul, mobile chief Shin said its Galaxy S6 and S6 Edge have been selling well.
"There have been reports that the sales of the S6 and S6 Edge were weaker than previously expected. But this is groundless. They were doing well," Shin told reporters.
He refuted reports that Samsung will unveil its Galaxy Note5 in July ahead of this year's IFA fair in Berlin. "We have no plans to introduce the Galaxy Note5 in July," Shin said.
Samsung uses an annual IFA trade fair, which is held every September, as the venue to disclose its new Note series.
Separately, the chief communications officer at the Samsung Future Strategy Office, Lee Joon, said Samsung Vice Chairman Lee Jae-yong will manage this year's Ho-Am Celebration replacing Samsung Chairman Lee Kun-hee, who has been hospitalized since a heart attack about a year ago.
"Vice Chairman Lee will participate in the upcoming event," Lee told reporters in a briefing. The Ho-Am Prize was designated in 1990 to highlight Samsung's efforts as a good corporate citizen.
"This will be the Vice Chairman Lee's first official debut for a group-wide event," Lee said.
He will succeed his father at the Samsung Life Public Welfare Foundation and Samsung Foundation of Culture from May 30. "But whether the vice chairman will be promoted to become the Samsung chairman has yet to be decided."