Big Businesses Boost Investment Despite Plunging Profits

Major conglomerates in Korea boosted investment by 15 percent despite suffering an average 25-percent on-year decline in operating profits in the first half of this year due to the coronavirus epidemic.

Hyundai's operating profit plunged 26 percent, but it increased investment by 24.6 percent. POSCO, whose operating profit plummeted 51.7 percent, raised investment by a whopping 84.5 percent, and GS Group made a loss boosted but boosted investment 41.3 percent.

Market researcher CEO Score on Monday said a study of 374 subsidiaries of 64 conglomerates showed their average investment in the first half increased 15.8 percent to W43.29 trillion (US$1=W1,188).

Their operating profit declined 25.3 percent to W30.36 trillion.

Park Joo-geun at CEO Score said, "Major conglomerates that are leading future industries like semiconductors, autonomous driving and rechargeable batteries boosted investment to prepare for the post-coronavirus era."

In terms of investment amounts Samsung ranked first with W15.26 trillion, up 64.8 percent on-year. Next were SK Group (W7.6 trillion), LG (W4.69 trillion), and Hyundai (W4.02 trillion).