Samsung Group is raising its 2012 investment to $41.4 billion in an effort to maintain market share of flat screens and mobile units. The move could provide a boost to iShares MSCI South Korea (NYSEArca: EWY).
“Samsung’s got strong cash flow to make bold bets in new technologies,” Lee Sun-tae, an analyst at NH Investment & Securities, said. “No other IT company can beat it in terms of investment and that’s how Samsung finds new revenue sources ahead of rivals and widens its gap.” [ETF Chart of the Day: Emerging Markets]
According to the technology group, the company will hire 26,000 new employees this year, adding to the current 350,000 current employees. Samsung will spend on logic chips and OLED displays to continue success in flash chips, reports Miyoung Kim for Associated Press.
Although the tech company did not announce a breakout of the 47.8 trillion won investment, analysts are saying that the investment will most likely go to raising market share for mobile chips and OLED lighting for flat screen displays. Investment will also go toward factories for research and development, mergers and acquisitions, and hiring, according to the AP report .[South Korea ETF Hit by Economic Slowdown]