Samsung Electronics To Borrow $16B From Samsung Display For Working Capital Purposes

Samsung Electronics Co, Ltd SSNLF plans to borrow 20 trillion won ($15.78 billion) from unit Samsung Display Co to use as operational funds.
Samsung plans to borrow the funds at a 4.6% interest rate until August 2025, Bloomberg reports.
Samsung said in January that it intends to keep its capital expenditure this year in line with 2022, when it spent $39 billion on chipmaking efforts.
Samsung found that the grim market situation and weak consumer sentiment presented an opportunity to make early investments in future technology and production capacity.
Samsung warned that the smartphone market would shrink again in 2023 after a double-digit decline in 2022.
In India, Samsung reportedly began making its fold and flip smartphones and its latest Galaxy S23 flagship.
Samsung bagged double the number of orders for its latest Apple Inc AAPL iPhone-rival Galaxy S23 in India in 24 hours versus the previous generation of Galaxy devices on the first day.
Samsung increased the number of stores selling Galaxy devices and invested more in sales and marketing.