Samsung Electronics plans to spend $22 billion over the next three years on artificial intelligence, auto components and other future businesses as the company maps out its strategy under the restored leadership of Vice Chairman Lee Jae-yong after he was freed from prison.
The announcement Wednesday by South Korea's biggest business group was welcome news, coming at a time of deepening unease over slowing growth in Asia's fourth largest economy.
Samsung said it will spend the sum, amounting to 25 trillion won, on hiring artificial intelligence researchers, ensuring it will be a global player in next generation telecoms technology called 5G and deepening its involvement in electronic components for future cars.
Some of the funding will go to Samsung's biopharmaceutical businesses. Samsung has been beefing up its contract drug making operations to help counter a potential decline in its mainstay electronics businesses.
South Korea relies heavily on Samsung and its affiliated companies for investment and jobs, even after a corruption scandal that resulted in Lee's conviction for bribery. Lee was freed after nearly a year in jail but former President Park Geun-hye and a close associate remain imprisoned for bribery and other charges.
Lee kept a low profile after his release in February but has been emerging in his public role in recent weeks. The most notable appearance was in India, where Lee met with President Moon Jae-in and Samsung announced plans to expand its smartphone production there.
Including the latest plan, spending by Samsung Electronics and its affiliates on research and development and capital expenditures over the next three years will amount to 180 trillion won ($161 billion), Samsung said. Of that total, 130 trillion won will stay in South Korea, the company said.
Samsung also said Wednesday that it plans to create 20,000 more jobs over the next three years, on top of a previously announced 20,000 new jobs.
South Korean voters weary of scandals and critical of big businesses like Samsung elected President Moon to replace Park after she was ousted.
Moon pledged to reform outdated practices and abuses in politics and in business and appointed a critic of big conglomerates, known as "chaebols," to lead South Korea's fair-trade commission.
Such moves raised hopes for change, but more than a year after taking office Moon's administration is facing mounting criticism over its handling of the economy. Youth unemployment rates are at historic highs and exports, apart from the booming memory chip sector, have been slow to recover. Moon's approval rates have fallen to around 60 percent for the first time, the lowest level since he took office.
Samsung's investment announcement came two days after the finance minister visited a Samsung computer chip factory, where he touted Samsung's importance South Korea's economy.
DETROIT (AP) — The Oakland Athletics no longer have to wonder where they'll play the next few seasons. That won't make the long goodbye any easier.
The A's reacted to the announcement that this will be their last year in Oakland with a mixture of sadness and relief.
“At least as a player, you know where you’re headed,” outfielder Seth Brown said Friday before a game against the Tigers in Detroit. “There’s obviously a lot of moving parts, a lot of stuff we’re not privy to, so it’s just been kind of a waiting game on our end. Where are we going to go? Where are we going to be? So I think just having that knowledge -- at least we know where we’re going to be playing next year.”
Vivek Ranadivé, who owns the Triple-A Sacramento River Cats, and Oakland Athletics owner John Fisher announced Thursday that the A’s will temporarily relocate to West Sacramento's Sutter Health Park for at least three seasons. The A's are moving to Las Vegas after a new ballpark is constructed.
The River Cats, who are affiliated with the San Francisco Giants, will continue to play at the same facility.
Fisher was unable to reach an agreement with Oakland city officials on extending the lease at Oakland Coliseum, which expires at the end of this season. The A's have played in the city since 1968.
“There's direction now, which we've talked a lot about,” Oakland A's manager Mark Kotsay said. “We've got time to kind of reflect on what this really means from an organizational standpoint, the history that we've had in Oakland, with this being now the final season. There's a lot of emotion that goes behind this.”
It will not only cause some upheaval for the players and staff but also members of the organization that work behind the scenes.
“At the end of the day, we know where we're going to be for the next three seasons after the finish this year and that in itself gives a little bit of stability,” Kotsay said. “At the same time, in the present, it's challenging in certain ways to think about the finality of this organization in Oakland.”
Sacramento will be a much smaller environment to house a major league team. Ranadivé said the River Cats venue currently seats 16,000 when counting the stands, the lawn behind center field and standing room only.
First baseman Ryan Noda is concerned with the facilities. He's hopeful that significant upgrades will be made, much like the Toronto Blue Jays did at Buffalo's Triple-A facility. The Blue Jays played at Buffalo's Sahlen Field in 2020 in 2021 during the COVID-19 pandemic.
“New walls, new dugouts, new locker rooms — everything they needed to become a big league stadium,” said Noda, who played some games in Sacramento as a minor leaguer. “As long as we can do something like that, then it'll be all right. But it's definitely going to be different than playing in stadiums that hold 40,000 people.”
Kotsay is confident the upgrades will occur.
“I know it will be of major league baseball quality,” he said. “It's has to be of major league baseball quality. I know the Players Association will make sure that takes place, as they did in Buffalo.”
For the rest of this season, the A's will have to deal with small home crowds and disappointed fans.
“We’re sad for the fans, the diehard fans, who always come to our games, always support us, always support the boys wearing the jersey,” Noda said.
AP MLB: https://apnews.com/hub/mlb
Sacramento Kings owner Vivek Ranadive, center, shakes hands John Fisher, owner of the Oakland Athletics, before the start of a news conference where Fisher announced his team will leave Oakland after this season and play temporarily at a minor league park, during a news conference in West Sacramento, Calif., Thursday, April 4 2024.The A's announced the decision to play at the home of the Sacramento River Cats from 2025-27 with an option for 2028 on Thursday after being unable to reach an agreement to extend their lease in Oakland during that time. (AP Photo/Rich Pedroncelli)
John Fisher, owner of the Oakland Athletics baseball team, announces that his team will leave Oakland after this season and play temporarily at a minor league park, during a news conference in West Sacramento, Calif., Thursday, April 4, 2024. The A's announced the decision to play at the home of the Sacramento River Cats from 2025-27 with an option for 2028 on Thursday after being unable to reach an agreement to extend their lease in Oakland during that time. (AP Photo/Rich Pedroncelli)
Sutter Health Park, home of the Triple A team Sacramento River Cats, is shown in West Sacramento, Calif., Thursday, April 4, 2024. The Oakland Athletics announced the decision to play at the home of the Sacramento River Cats from 2025-27 with an option for 2028 on Thursday after being unable to reach an agreement to extend their lease in Oakland during that time. (AP Photo/Rich Pedroncelli)
Oakland Athletics manager Mark Kotsay walks to the dugout after making a pitching change during the eighth inning of the team's baseball game against the Cleveland Guardians in Oakland, Calif., Sunday, March 31, 2024. (AP Photo/Jeff Chiu)
