Samsung announced the ambitious investment plans aimed at driving future growth on Monday. In a statement, it will invest 23 trillion won (roughly 20 billion USD) in five emerging businesses areas by the year 2020: solar cells, rechargeable batteries for hybrid cars, LED technology, biopharmaceuticals and medical equipment. There has been uncertainty over the company’s future business direction for some time. Lee Kyn-hee, the son of the company’s founder, returned as the chairman in March.
Meanwhile, LG will invest $18 billion between now and 2020 to develop environmentally friendly products and reduce its emissions by 40 percent. LG already started producing solar cells earlier this year and will open another factory next year.
While Samsung and LG have been the world’s most competitive corporations in certain areas such as LCD and mobile phones, they have engaged in fast follower strategy. If they succeed in this new endeavor, they will mostly likely be recognized as truly innovative companies.
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