Samsung to invest $42bn in record expansion

Samsung has pledged to invest 47.8tn won ($41.7bn, £27bn) in the expansion of its various businesses this year.

Apple's bitter rival will plough 31tn won on improving its factories and equipment, and a further 13.6tn won into research and development.

Samsung, the largest firm in South Korea with 80 affiliate companies, is the world's leading manufacturer of televisions and memory chips. Its latest financial push is the biggest in its history, BBC News reports.

The tech giant also announced plans to expand its workforce by 26,000 employees in 2012. Analysts have predicted that much of the expansion will be based around its electronics and memory-chip production.

"Samsung's got strong cash flow to make bold bets in new technologies," said Lee Sun-tae of NH Investment & Securities. "No other IT company can beat it in terms of investment and that's how Samsung finds new revenue sources ahead of rivals and widen its gap."

Samsung reported record profits in the fourth quarter of 2011, largely attributed to significant growth of smartphone business.

The news follows reports that rival tech firm LG Group is slashing its expenditure by 15% this year.

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