The nation's largest conglomerate Samsung Group says it expects pre-tax profits to increase by more than a third next year to eight point nine trillion won. That's roughly six point eight billion dollars.

The rosy forecast is based on an expected rebound in the semiconductor sector. But Samsung said it will cut its investments by 26 percent to five trillion won as it is uncertain about an economic rebound.

Samsung projects sales to rise to one hundred-30 trillion won from one hundred-23 trillion won. A senior company official said THAT is a conservative projection since the economy is expected to see little improvement or remain in a prolonged slump.

Samsung's caution over the economy contrasts with the government's forecast. The government announced last week that growth will accelerate to between four and five percent next year from around two point eight percent this year.

Samsung accounts for about 16 percent of Korea's exports and has 23 units under its wing, including Samsung Electronics.