ID :
191672
Wed, 06/29/2011 - 07:55
Auther :
Shortlink :
https://oananews.org//node/191672
The shortlink copeid
S. Korea's corporate investment growth to cool in H2: poll
SEOUL, June 29 (Yonhap) -- Growth in South Korean manufacturers' capital spending will slow down in the second half of the year from six months earlier due to unstable economic conditions, a poll showed Wednesday.
According to the survey of 1,007 manufacturers by the Korea Chamber of Commerce and Industry (KCCI), their average facility investment is forecast to rise 7.2 percent on-year in the July-December period, down from a 13.1 percent jump in the first half.
"Companies seem to be reluctant to expand corporate spending because of over investment, sluggish domestic demand, financing difficulties and unstable exchange rates and oil prices," the KCCI said.
According to the findings, investments by large enterprises are predicted to rise 8.1 percent in the latter half, with those by smaller companies set to grow 6.9 percent.
Corporate investment in machinery is expected to rise 15.8 percent, with capital spending by car and auto parts industries projected to advance 13.5 percent.
Construction companies plan to raise their capital expenditures by a mere 1.0 percent, reflecting the persistent slump in the local property market.
The KCCI called on the government to take a variety of measures to help boost corporate capital expenditures.
"The government should make efforts to bolster corporate sentiment by maintaining its tax cut plan, boosting domestic demand and easing regulations," it said.
brk@yna.co.kr
According to the survey of 1,007 manufacturers by the Korea Chamber of Commerce and Industry (KCCI), their average facility investment is forecast to rise 7.2 percent on-year in the July-December period, down from a 13.1 percent jump in the first half.
"Companies seem to be reluctant to expand corporate spending because of over investment, sluggish domestic demand, financing difficulties and unstable exchange rates and oil prices," the KCCI said.
According to the findings, investments by large enterprises are predicted to rise 8.1 percent in the latter half, with those by smaller companies set to grow 6.9 percent.
Corporate investment in machinery is expected to rise 15.8 percent, with capital spending by car and auto parts industries projected to advance 13.5 percent.
Construction companies plan to raise their capital expenditures by a mere 1.0 percent, reflecting the persistent slump in the local property market.
The KCCI called on the government to take a variety of measures to help boost corporate capital expenditures.
"The government should make efforts to bolster corporate sentiment by maintaining its tax cut plan, boosting domestic demand and easing regulations," it said.
brk@yna.co.kr
