Investment Increase
The Federation of Korean Industries (FKI) announced on Sept. 20 that the 30 largest Korean business groups, including the Samsung and Hyundai Motor Groups and excluding financial groups, executed investment worth a total of 61.1 trillion won (US$52.0 billion) in the first half of this year. The amount is equivalent to 45.1 percent of the annual target amount, according to their investment plans for this year.
Between January and June, they recorded a facility investment of 46.5 trillion won (US$39.6 billion) with a budget execution ratio of 45.6 percent, while spending 14.6 trillion won (US$12.4 billion) on R&D, to show a rate of progress of 43.6 percent.
This year, they are planning to invest 102 trillion won (US$86.8 billion), 19.3 percent up from a year ago, in facilities and equipment and increase their R&D expenditures by 7.6 percent to 33.6 trillion won (US$28.6 billion). The FKI explained that these goals would be easily met if the government continues to assist in their business activities by means of deregulation, in compliance with global standards.
According to the FKI, the 30 business groups’ combined annual investment rose by an annual average of 6.2 percent, from 81.4 trillion won (US$69.3 billion) to 116.7 trillion won (US$99.3 billion) between 2008 and last year. During the same period, the total facility investment on the national account and household spending increased by an annual average of 3.6 and 4.1 percent, respectively.