ID :
34956
Wed, 12/10/2008 - 20:09
Auther :

S. Korea's biz investment expected to contract in 2009: poll


SEOUL, Dec. 10 (Yonhap) -- South Korea's business investment is expected to
contract in 2009 from this year as the global slump compels entrepreneurs to be
more conservative, a poll released by the Korea Development Bank (KDB) said
Wednesday.
The poll conducted on 3,600 local companies showed total investment in the new
year will reach 91.7 trillion won (US$65.8 billion), down 6.8 percent from the
98.3 trillion won forecast for 2008.
The state-run bank said if business investment falls, it will be the first
negative growth in seven years after the 4.5 percent year-on-year drop tallied in
2002.
By sector, the KDB said manufacturing could experience a sharper drop vis-a-vis
other areas. Manufacturing-related investment may decline 9.3 percent, with
information technology likely to see funds cut by 24.5 percent.
Investment in semiconductors and machinery could drop 26.8 percent and 23.3
percent, respectively, with numbers for petrochemicals and shipbuilding to drop
7.7 and 6.4 percent each.
The survey added that while investment by large conglomerates may decline 8.0
percent, that for small- and medium-sized enterprises could nosedive 31.1
percent, on par with the drop experienced in 1998 during the Asian financial
crisis.
yonngong@yna.co.kr
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