Saneun Forecasts Facility Investment of 186.9 Trillion KRW Next Year, Up 3.6% YoY

[Asia Economy Reporter Kim Jin-ho] On the 29th, the Korea Development Bank forecasted that domestic companies' facility investment next year will reach 186.9 trillion won, a 3.6% increase compared to this year's investment execution amount of 180.4 trillion won. The bank anticipated that the increase in facility investment will continue due to the sustained recovery of the manufacturing industry and the rebound in private consumption.

By industry, semiconductors, displays, and steel are expected to lead domestic facility investments. Semiconductor investment is expected to increase due to expanded investment in fine processes, while the display industry is projected to see growth in facility investment driven by the transition to next-generation displays and a strong premium smartphone market.

With the ongoing global economic recovery, industries such as automobiles, machinery equipment, and transportation are also expected to increase their facility investment scale. Additionally, the steel industry and the power generation sector (electricity, gas, and water supply) are projected to expand facility investments in eco-friendly equipment and carbon-neutral fields such as renewable energy.

This year, the scale of domestic companies' facility investment (provisional) was 180.4 trillion won, showing an 8.4% increase compared to 2020. This increase is analyzed to be due to the continued economic recovery driven by major countries' stimulus policies and export growth.

By industry, the semiconductor sector maintained an increase in facility investment due to the expansion of IT product demand and favorable conditions in the memory semiconductor market. Facility investments also increased in electrical equipment industries such as home appliances, shipbuilding, steel, and transportation (including shipping) due to the ongoing global economic recovery.

Meanwhile, this survey was conducted from October 14 to December 3, targeting 3,700 companies (432 large enterprises, 1,315 mid-sized companies, and 1,953 small and medium enterprises).

This content was produced with the assistance of AI translation services.