April 25, 2024

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[THE INVESTOR] South Korean companies’ facilities investment has fallen and will remain below 2015 levels in the coming year, the Korea Development Bank said on Dec. 12.

According to the KDB, South Korea companies made 179.4 trillion won (US$153.23 billion) facilities investment this year, down 0.8 percent from 2015. 

Although next year is projected to see a 0.1 percent on-year increase to 179.4 trillion won, the figure will remain below that of 2015, which came to about 180 trillion won.

This year, the KDB data showed that small and medium enterprises scaled back investment by 13.6 percent, while large companies increased facilities investment by 2.1 percent.

By sector, the manufacturing sector saw an increase of 1.7 percent but facilities investment in non-manufacturing sectors fell 3 percent.

As for next year, large corporations plan to raise investment by 2.7 percent to 154.6 trillion won. SMEs, however, are to continue reducing investment in the coming year. According to the KDB, SMEs are planning facilities investment of about 25.1 trillion won, down 13.2 percent from this year.

By Choi He-suk (cheesuk@heraldcorp.com)