Big businesses to discuss job-saving, investment amid slump

SEOUL, March 12 (Yonhap) -- The heads of South Korea's major business
conglomerates were to discuss how to stave off downsizing and drive investment in
the battered economy during their meeting Thursday, the nation's top business
lobby said.
The CEOs of Samsung, Hyundai Motor and LG -- along with other "chaebol" that form
the backbone of the Korean economy -- were to address job-saving measures and
investment in the first such gathering this year, according to an official at the
Federation of Korean Industries (FKI).
"Various issues on the economy, including job sharing, will be on the table," the
FKI official said.
South Korea's export-dependent economy is on the brink of falling into its first
recession in a decade due to dwindling consumption in the world's major economies
and at home.
Last week, Park Hee-tae, chairman of the ruling Grand National Party called on
the conglomerates to boost corporate spending to create jobs in return for
sweeping government deregulations recently passed through the National Assembly.
"It's time for the chaebol to open their cashboxes," Park told reporters.
On Wednesday, Samsung Group, the nation's biggest conglomerate, said it will hire
5,500 university graduates this year, up from an earlier forecast of 4,000.
The move appeared to be in line with a government-initiated "job sharing" scheme,
which calls for big companies to cut salaries and redirect the savings from the
pay cuts into hiring more workers to avert American-style layoffs.
On the same day, LG Group announced it will invest 11.3 trillion won (US$7.6
billion) this year, unchanged from last year's spending.
Hyundai Motor Group also said it will spend nine trillion won in facility and
research investment this year, an amount similar to its 2008 investment.
(END)