Office workers in Yeouido stepping out to eat during their lunch break (Image courtesy of Yonhap)
SEOUL, Jul. 8 (Korea Bizwire) — Nine out of 10 large companies in South Korea plan to maintain or increase their investments in the second half of the year, despite challenges such as prolonged high interest rates, a weak local currency and international uncertainties, a survey showed Monday.
In the survey conducted by Mono Research, which polled the top 500 companies by sales, 74.2 percent stated they have investment plans for the second half similar to those of the first half.
Additionally, 16.7 percent said they will increase their investments in the July-December period compared with the first six months of the year. Only 9.1 percent indicated plans to reduce their investments in the second half.
The poll was commissioned by the Federation of Korean Industries (FKI), South Korea’s leading business lobby.
Among the companies planning larger investments, 31.8 percent cited the need to replace or upgrade old equipment over the next six months. Another 31.8 percent attributed their decision to hopes for an industry recovery in the second half of the year.
About 13.7 percent said they would make more aggressive investments during the recession to enhance competitiveness.
On the other hand, companies with negative investment plans cited the prospect of continued global monetary tightening and increased risks from rising costs.
The FKI explained that the expectation of an economic recovery, driven by increased global demand and other factors, has led many firms to maintain or increase their investment levels from the first half, despite concerns over continued monetary tightening.
The survey also showed that 37.1 percent of companies predict they will invest more actively in the first half of next year, while 24.2 percent stated their investments are already active, and 15.2 percent plan to increase their investments in the second half of this year.
The FKI said that many South Korean companies anticipate next year as a pivotal time to revitalize investments, expecting clear recovery in the global economy.
(Yonhap)
