Last year, corporations in the top 10 manufacturing sectors invested 114 trillion won in facilities. Despite a challenging investment environment due to high interest rates and high exchange rates, semiconductor and automobile corporations actively invested, surpassing the target of 110 trillion won.
On the 12th, the Ministry of Trade, Industry and Energy held the 5th industrial investment strategy meeting chaired by Minister Ahn Duk-geun at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, and disclosed the facility investment amount of corporations in the top 10 manufacturing sectors. The top 10 manufacturing sectors include semiconductors, automobiles, displays, secondary batteries, petrochemicals and refining, steel, bio, shipbuilding, machinery and robots, and textiles.
The industrial investment strategy meeting is a public-private joint council operated by the Ministry of Trade, Industry and Energy since February last year to promote three major investments: facilities, foreign investments, and research and development. Attendees include executives from representative corporations in the top 10 manufacturing sectors, the Korea Chamber of Commerce and Industry, and the Korea Industrial Technology Association.
Last year's facility investment reached 114 trillion won, exceeding the initial target amount of 110 trillion won set by the industry for this year. A ministry official noted, "Despite challenging conditions such as rising funding costs due to prolonged high interest rates and increased prices of capital goods due to high exchange rates, semiconductors and automobiles led domestic investments."
This year, the investment plan for the top 10 manufacturing sectors has been set at 119 trillion won, a 7% increase from last year. Semiconductor corporations plan to increase investment focusing on advanced memory in response to robust growth in global artificial intelligence demand. Automobile corporations are expected to expand their investments in electric vehicle transitions.
However, investments in sectors such as secondary batteries and steel are expected to shrink due to declining demand and oversupply.
At the meeting, corporations demanded to promote domestic investments by extending the temporary investment tax credit, which failed to pass the National Assembly last year, providing bold financial support, and minimizing uncertainties in trade with proactive government support, according to the Ministry of Trade, Industry and Energy.
Minister Ahn Duk-geun stated, "While strategic overseas investment is necessary in the context of a global tariff war, considering domestic job creation and uncertainties in the supply chain, domestic investment is important," adding that, "We will fully support our corporations to steadily increase domestic investments."