Samsung will invest a total of 450 trillion won in domestic investment, including research and development (R&D), over the next five years.
Samsung stated accordingly by distributing separate materials immediately after a public-private joint meeting related to follow-up on the U.S.-Korea tariff negotiations held at the Yongsan presidential office on the 16th. President Lee Jae-myung noted at the meeting that day, "As investment in the United States becomes too strong, I trust you will take good measures so there is no concern that domestic investment will decline."
At the public-private joint meeting presided over by the president that day, attendees included Samsung Electronics Chairman Lee Jae-yong, SK Group Chairman Chey Tae-won, Hyundai Motor Group Chairman Chung Eui-sun, LG Group Chairman Koo Kwang-mo, HD Hyundai Chairman Chung Ki-sun, Celltrion Chairman Seo Jung-Jin, and Hanwha Group Vice Chairman Yeo Seung-ju.
Samsung's domestic investment decision comes against the backdrop of the announcement on the 14th of the "joint fact sheet" containing detailed agreements on U.S.-Korea tariff and security negotiations, and the signing of a $350 billion "memorandum of understanding (MOU) on strategic investment between the United States and Korea." Centered on the four major groups including Samsung, corporations in Korea previously pledged $150 billion in U.S. investment separate from the "investment MOU."
At the public-private joint meeting, the chairman said, "With the conclusion of the tariff negotiations, corporations are greatly relieved," adding, "Mr. President, you truly put in tremendous effort. Thank you." The chairman also said, "Based on the results this time (including the U.S.-Korea tariff negotiations), corporations will actively cooperate with the government to ensure there are no setbacks in follow-up work."
Regarding concerns that domestic industrial investment might shrink due to this U.S. investment, the chairman said, "Samsung will work harder to expand domestic investment, create good jobs for young people, and pursue mutual growth with small and midsize companies and venture companies so that such a thing does not happen."
The chairman also reiterated at the event that the company plans to keep the promise announced in Sep. to "hire 60,000 people domestically over the next five years." The chairman said, "Including R&D, we will be even more aggressive with domestic facility investment," adding, "Samsung will do everything it can to develop future technologies." On balanced regional development, the chairman said, "As a principle, we plan to build artificial intelligence (AI) data centers outside the greater Seoul area."
The chairman said, "After the U.S.-Korea summit at the Asia-Pacific Economic Cooperation (APEC) meetings in Gyeongju, President Lee said, 'We must strengthen national power in the face of a difficult external environment,' and those words remain vividly in my mind," adding, "I believe that diplomatic power and defense power, as well as K-culture as a cultural asset and industrial competitiveness, are key elements in strengthening national power."
◇ "We will strive for balanced regional development… and expand hiring opportunities"
Announcing 450 trillion won in domestic investment over the next five years, Samsung said, "Samsung Electronics and affiliates will also embark on comprehensive investment in regions outside the greater Seoul area to promote balanced regional development," adding, "In addition to open recruitment of new employees and other new hires, we decided to actively contribute to creating jobs for young people through various corporate social responsibility (CSR) initiatives."
Samsung will also accelerate tangible funding support aimed at mutual growth with partners. It plans to actively operate mutual growth funds and environmental, social and governance (ESG) funds and to strengthen incentives paid to partner firms.
It also rolled up its sleeves to bolster the competitiveness of the semiconductor industry, the mainstay of Korea's industry. Samsung Electronics recently held an ad hoc management committee meeting and decided to proceed with frame construction for Line 5 in the second complex at the Pyeongtaek campus. This production line is slated to begin full operations in 2028. Samsung Electronics said, "As the global AI era takes full shape, we expect mid- to long-term demand for memory semiconductors to expand, and we plan to secure production lines preemptively to respond swiftly to market changes."
Balanced regional development is being spearheaded by Samsung SDS. As the lead operator in a special purpose company (SPC) consortium to build the national AI computing center, Samsung SDS is pursuing plans to construct a large-scale AI data center in South Jeolla Province. The roughly 15,000 graphics processing units (GPUs) to be secured at this center by 2028 will be supplied to academia, start-ups, and small and midsize companies.
Samsung SDS is also formulating plans to build a large-scale AI data center at Gumi Plant 1 in North Gyeongsang Province. As an AI-specialized data center, it will complete remodeling in 2028 and provide AI services mainly to Samsung Electronics and other Samsung affiliates.
◇ "We will expand domestic production of HVAC, batteries, displays, and semiconductor substrates"
FläktGroup (hereafter Fläkt), Europe's largest HVAC equipment company that Samsung Electronics completed acquiring early this month, will also build production lines in Korea and focus on targeting the AI data center market. To accelerate its entry into Korea, Fläkt is reviewing building production lines and expanding its workforce in Gwangju Metropolitan City.
Samsung SDI is singling out its Ulsan business site as a strong candidate for a domestic base to produce next-generation batteries such as all-solid-state batteries, known as "dream batteries," and is fleshing out plans. In Mar. 2023, the company installed the first all-solid-state pilot line in Korea's battery industry at the Suwon SDI Research Center and began producing prototypes at the end of the same year. It is currently supplying samples to several customers and conducting tests, with a goal of beginning mass production in 2027.
Samsung SDI said, "We are continuously securing differentiated competitiveness for the commercialization of all-solid-state batteries, including by recently signing a business agreement with Germany's BMW on an 'all-solid-state battery demonstration project.'"
Samsung Display is building an 8.6-generation organic light-emitting diode (OLED) production facility for IT at its Asan business site in South Chungcheong Province. This line will begin trial operations at the end of this year and aims to mass-produce display products for IT devices around the middle of next year. Separately, Samsung Display donated 14 idle pieces of equipment, including a lithography system, this year to the Chungnam Technopark Innovation Process Center, which opened last year.
Samsung Electro-Mechanics has been investing in boosting production capacity in Busan, its base production site for high-value semiconductor package substrates, since 2022. At the Busan business site, it developed and is mass-producing Korea's first server package substrate with a very high level of technical difficulty. The company said, "We will expand supply of the FC-BGA mass-produced at the Busan business site to existing big tech companies and accelerate diversification of new customers for AI accelerators, contributing to the government's AI-based growth policy."
◇ "We will directly hire young people and help them become independent… and provide funding to partners"
Pursuing the "hire 60,000 people over five years" announced in Sep., Samsung is also running separate programs to help alleviate youth unemployment. Samsung said, "Through CSR programs related to youth education and win-win cooperation, we are creating more than 8,000 jobs directly and indirectly."
Separately, since 2015 Samsung has supported housing stability for youths preparing for independence. Since 2023, after hearing the opinions of youths preparing for independence, it has been operating 10 job tracks to help build technical and functional capabilities: ▲ electronics and IT manufacturing ▲ shipbuilding ▲ HVAC and refrigeration ▲ baking and pastry ▲ nail art ▲ pet grooming ▲ software development ▲ advertising and public relations ▲ heavy equipment operation ▲ semiconductor piping. Of the 152 total program graduates, 70 succeeded in finding jobs.
Since 2018, Samsung has operated "C-Lab Outside" to support promising external start-ups that have business ideas but lack capital or business know-how. Through this, it has nurtured about 540 corporations.
Since 2022, it has also supported youth activist groups that carry out public-interest activities to solve community problems. Youth activist groups selected through an open call receive up to 50 million won per year. A total of 1,414 people from 80 groups across 56 regions have received support.
In addition, to ease the management burden on primary to tertiary partner companies, Samsung provides low-interest loans for funds needed for facility investment, technology development, and operating capital. As of the first half, it is supporting 2.0321 trillion won for 1,051 companies. For small and midsize partner companies, it supports building smart factories, and to help transition to ESG management, it also provides interest-free loans for safety and environmental investment expense. Since 2010, Samsung has also been paying incentives to employees of partner companies stationed at semiconductor and display business sites. A total of 814.6 billion won in incentives was paid through the first half of 2025.