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Corporate Investment Forecast to Grow Slightly Next Year
Date
2012.12.20
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South Korean manufacturers' facility investment is forecast to rise an average of 1.3 percent next year, a turnaround from an estimated 1 percent drop this year, a poll showed Thursday.

According to the survey of 500 manufacturers by the Korea Chamber of Commerce and Industry (KCCI), 28.6 percent of the respondents said that they will increase their capital expenditures this year to improve superannuated facilities, while 27.6 percent said they will cut their investment due to ailing demands both at home and abroad.

"A slowdown in exports and depressed domestic demand led to the increased corporate investment this year," the KCCI said, adding, "Next year's corporate investment will remain at the level of 2011 as they expect economic conditions to remain uncertain next year."

By sector, food, machinery and automobile makers are predicted to increase their investments in 2013, but petrochemicals and home appliance makers' investments will slow down, the KCCI said.

Investments by large enterprises are predicted to rise 4.5 percent next year, with those by smaller companies set to fall 0.4 percent, the chamber said.
Corporate capital spending is likely to drop an average of 1 percent this year from a year earlier, according to the findings.

Source Text

 

Source: Yonhap News (Dec. 20, 2012)

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