Mid-sized Companies' Equipment Investment in H1 Reaches 6.8258 Trillion Won... Secondary Batteries Increase, Semiconductors Decrease

CEO Score, Survey on Facility Investment Amounts of Top 500 Mid-sized Companies in First Half
Facility Investment Increased by 1.1% in First Half... Operating Profit Down 19.6%

In the first half of this year, while the operating profit of the top 500 mid-sized companies in Korea decreased by 19.6%, their facility investments increased by 1.1%. Four companies related to secondary batteries, including Cheonbo and Geumyang, were among the 'Top 10' in facility investment growth, whereas three semiconductor-related companies, including Nepes and Solus Advanced Materials, were included in the 'Top 10' for facility investment decline.

According to CEO Score, a corporate data research institute, the total facility investment amount in the first half of the year for 490 companies out of the top 500 mid-sized companies in Korea, which were comparable from 2021 to 2023, was recorded at 6.8258 trillion KRW as of the 23rd. This is an increase of 1.1% (71.5 billion KRW) from 6.7543 trillion KRW in the first half of last year.

The operating profit of these mid-sized companies in the first half of this year was 5.8693 trillion KRW, down 19.6% (1.4328 trillion KRW) compared to the same period last year. Despite the decrease in operating profit, they increased investments for the future.

Investment Status of Top 500 Mid-sized Companies in Korea for the First Half of the Year. [Provided by CEO Score]

Among the top 500 mid-sized companies, Cheonbo had the largest increase in facility investment. Cheonbo invested 205.3 billion KRW in the first half of this year, an increase of 139.6 billion KRW (212.3%) compared to the same period last year. Cheonbo significantly increased investment to build a secondary battery materials factory in the Saemangeum National Industrial Complex.

Second was KSS Shipping, which invested 145.7 billion KRW, increasing facility investment by 104.8 billion KRW (256.2%) from 40.9 billion KRW in the same period last year due to the introduction of gas carriers. Third was Jahwa Electronics, which invested 120.1 billion KRW. Facility investment surged by 84.7 billion KRW (239%) from 35.4 billion KRW in the same period last year due to the establishment of a Gumi factory for producing parts supplied to Apple.

Following were ▲Wonik QnC (72.3 billion KRW, 299.4%↑) ▲Hana Micron (69.9 billion KRW, 47.1%↑) ▲Geumyang (55.7 billion KRW, 320.8%↑) ▲Moorim P&P (52.6 billion KRW, 180%↑) ▲Cosmo Chemical (51.4 billion KRW, 349.1%↑) ▲Cowell Fashion (51.1 billion KRW, 191.4%↑) ▲Sama Aluminum (49.5 billion KRW, 812.9%↑) in order of large facility investment increases. Among the top 10 companies with the largest increase in facility investment, Cheonbo, Geumyang, Cosmo Chemical, and Sama Aluminum were four companies related to secondary batteries.

Conversely, the company that reduced facility investment the most was Chris F&C. Chris F&C's facility investment in the first half of this year was 6.9 billion KRW, down 140 billion KRW (-95.3%) from 146.9 billion KRW in the same period last year. The second largest decrease was Nepes, which invested 45.5 billion KRW in the first half of this year, down 133.9 billion KRW (-74.6%) from the same period last year. Third was Ananti, which invested 103.2 billion KRW in the first half of this year, a decrease of 102.7 billion KRW (-49.9%) compared to the same period last year.

Following were ▲MCNEX (-82.8 billion KRW, 86.1%↓) ▲Solus Advanced Materials (-72.2 billion KRW, 35.2%↓) ▲DSR (-60.8 billion KRW, 97.6%↓) ▲JS Corporation (-48.2 billion KRW, 83.9%↓) ▲Cha Biotech (-48.2 billion KRW, 60.7%↓) ▲EM Tech (-46.4 billion KRW, 81.3%↓) ▲ITM Semiconductor (-45.7 billion KRW, 71.2%↓) in order of large decreases. Among the top 10 companies with the largest decrease, Nepes, Solus Advanced Materials, and ITM Semiconductor were three semiconductor-related companies.

By industry, facility investment increased the most in the petrochemical sector, which includes secondary batteries. Forty-two petrochemical companies invested 1.0876 trillion KRW in the first half of this year, an increase of 347.9 billion KRW (47%) compared to the same period last year. Second was the automobile and parts sector, where 46 companies invested 728.4 billion KRW, increasing by 228 billion KRW (45.6%) from the same period last year. Third was the transportation sector, where 10 companies invested 298.2 billion KRW, up 99.5 billion KRW (50.1%) from the same period last year. Following were ▲steel, metal, and non-metal (92.2 billion KRW, 20.9%↑) ▲medical devices (10.2 billion KRW, 16.8%↑) ▲shipbuilding, machinery, and equipment (9.4 billion KRW, 4.9%↑) ▲construction and building materials (9 billion KRW, 2.4%↑) in order of large increases.

On the other hand, the IT, electrical, and electronics sector, with 113 companies, saw facility investment of 1.7683 trillion KRW, down 297.8 billion KRW (-14.4%) from the same period last year, marking the largest decrease among 13 industries. The pharmaceutical and bio sector (-144.8 billion KRW, 25%↓), daily necessities (-137.1 billion KRW, 21.8%↓), services (-83.9 billion KRW, 12.5%↓), food and beverage (-34.2 billion KRW, 15.2%↓), and distribution (-27 billion KRW, 38.2%↓) sectors also saw decreased investments compared to the previous year.

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