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Korea's biggest corporations are expected to increase their capital spending on facilities and equipment this year. The Ministry of Knowledge Economy said Monday that the nation's top 200 companies plan to invest W62.5 trillion (US$1=W965) in facilities and equipment this year, up 19.9 percent from the previous year.
If the investments are made as planned, it will be a big jump from the capital spending growth in 2006 (10.9 percent) and 2007 (0.7 percent.) Still, the figure falls short of the growth in 2004 (24.8 percent) and 2005 (23.5 percent).
Last year businesses made actual investments of 7.6 percent less than their initial capital spending plans. It remains to be seen whether companies will adhere to their original plans this year.
Display manufacturers, shipbuilders and steelmakers are expected to be particularly lavish in their capital spending in 2008.
According to the ministry, display makers will increase their capital spending by 100.8 percent to ride on promising business opportunities such as the 2008 Beijing Olympic Games amid stabilized product prices. Shipbuilders are forecast to increase investment by 78.4 percent and steelmakers are expected to increase their capital spending by 60 percent.
However, semiconductor makers will invest W10.9 trillion in facilities and equipment this year, down 7.9 percent from last year due to a fall in product prices. Chipmakers bumped up their capital spending 16.2 percent to W11.8 trillion in 2007.
(englishnews@chosun.com )
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