Korea's corporate investment set to improve in H2

By Nam Kwang-sik
SEOUL, June 29 (Yonhap) -- South Korean manufacturers will increase their capital
spending by an average of 3 percent in the second half of this year from the
first half, a poll showed Monday.
According to the survey of 1,000 manufacturers by the Korea Chamber of Commerce
and Industry (KCCI), 24 percent of the companies polled said that they plan to
increase their investment in the production of new products and the development
of new technologies in the July-December period.
Investments for the future followed with 23.6 percent, and repair of decrepit
production facilities came next with 18.3 percent, the survey said.
"Corporate investment sentiment is expected to improve in the second half on the
back of hopes of an economic recovery stemming from the recent improvement in
some economic indicators," said the KCCI.
South Korea posted a current account surplus of US$3.63 billion in May for a
fourth straight month, while the country's industrial output's decline narrowed
in April by 8.2 percent on year, marking the first time that output has decreased
by a single digit after contracting 10 percent or higher over the previous five
months.
The whole of this year, however, will see a fall in the corporate capital
spending due to the impact of the global financial crisis, the chamber said.
The local manufactures' investments are forecast to fall 6.1 percent on-year this
year, a sharp increase from their January prediction of a 29.5 percent decline.
ksnam@yna.co.kr
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