[사설] Samsung Electronics confirmed the support of our economy even in the aftermath of the coronavirus

In spite of the Corona 19 incident, Samsung Electronics showed its potential to increase its operating profit by nearly 30% compared to the previous year. Looking at the preliminary 2020 results announced by Samsung Electronics on the 8th, operating profit increased 29.46% year-on-year to 35.95 trillion won, and sales also surpassed the previous year’s level at 236 trillion won. It was sluggish due to the aftermath of Corona 19 until the second quarter of last year, but it is the result of a rapid recovery from the third quarter. Not only memory semiconductors, smartphones, and home appliances, but also relatively inferior businesses such as foundries and system semiconductors also performed well. Once again, he confirmed that it is a strong support for the Korean economy.

Samsung Electronics’ surprise performance is even more meaningful as it was achieved in the worst situation since World War II. The World Bank estimated that the global economic growth rate will drop to -4.3% last year on the 5th. The shock was much greater than the -1.8% in 2009 during the global financial crisis. We did better than developed countries where the spread of Corona 19 was severe, but it is expected that we could not avoid negative growth at the -1% level. Despite such a crisis, the driving force behind Samsung Electronics’ military achievements came from aggressive investments for the future. According to the ‘2020 Industrial Research and Development (R&D) Investment Scoreboard’, recently announced by the European Commission, Samsung Electronics’ R&D investment amounted to about 21 trillion won as of 2019. It was more than global companies such as Apple and Intel. Samsung Electronics has ranked 1st to 4th in the global ranking of R&D investments over the past 6 years. Even this year, it is spurring investments in next-generation technologies and businesses. Samsung Electronics Vice Chairman Lee Jae-yong encouraged active investment at the president’s meeting on the 6th, saying, “Securing future technology is a matter of survival, read changes and preoccupy the future.”

In order for our economy to escape from low growth, many companies like Samsung Electronics must emerge. When more companies are constantly investing in new technologies and new businesses without complacent with the reality, the economy will naturally rejuvenate. It’s also the most obvious way to create quality jobs. The government and the ruling party should not only stick to corporate regulations, but also strive to support policies so that second and third Samsung Electronics can emerge.
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