KOSDAQ Listed Companies Increased Investments Despite COVID-19... 20 Trillion Won Invested Last Year

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[Asia Economy Reporter Kwon Jaehee] Despite the spread of COVID-19 last year, the investment scale of KOSDAQ-listed companies nearly reached 20 trillion won, more than doubling compared to the previous year.

According to the "2021 KOSDAQ Listed Companies' Investment Activity Disclosure Status" announced by the KOSDAQ Association on the 14th, the investment amount of 464 KOSDAQ-listed companies was 19.8114 trillion won, an increase of 109.2% (10.3425 trillion won) compared to the previous year.

This survey analyzed 589 cases (including duplicates, excluding foreign corporations) of 464 companies that had investment activity disclosures last year (January 1, 2021 ? December 31, 2021) out of 1,532 KOSDAQ-listed companies.

Investment amounts increased across all areas, including investments in other companies, technology introduction and transfer, new facility investments, and acquisition of tangible assets.

In particular, investments in other companies amounted to 8.8537 trillion won, an increase of 99.7% (4.4207 trillion won) compared to the previous year. The main purpose of investing in other companies was business expansion (24.3%), followed by business diversification (20.1%) and securing management rights and strengthening control (13.5%).

Next, new facility investments amounted to 3.2364 trillion won, an increase of 87.8% (1.5132 trillion won) compared to the previous year. The investment amount per company was 37.6 billion won, up 24.5% (7.4 billion won) from 30.2 billion won the previous year.

By investment sector, facility investments such as equipment accounted for the largest share at 42.1%, followed by new construction and expansion of factories (32.6%), and new construction and expansion of research institutes and office buildings (25.3%).

The acquisition amount of tangible assets recorded 2.1551 trillion won, an increase of 56.8% compared to the previous year. This is an increase of 56.8% (1.3747 trillion won) from the previous year.

The main targets for tangible asset acquisition were land and buildings, accounting for 83.6%. Additionally, the contract amount for technology introduction and transfer also grew significantly, increasing by 187.2% compared to the previous year. It amounted to 5.5662 trillion won, an increase of about 3.6282 trillion won from the previous year.

Jang Kyungho, chairman of the KOSDAQ Association, said, "KOSDAQ companies have increased investments to secure future growth engines in preparation for industrial restructuring after COVID-19. In particular, investments to secure management rights and expand business through acquisition of other companies' stocks, as well as to strengthen competitiveness through business alliances, appear to have increased significantly."

Chairman Jang added, "The significant increase in the amount spent on new construction and expansion of research institutes and office buildings is expected to enhance technological competitiveness through expanded research and development (R&D) investment."

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