S. Korean firms' capital spending spikes in Q3

SEOUL, Oct. 12 (Yonhap) -- South Korea's corporate capital expenditure rose
almost seven-fold in the third quarter from three months earlier on increased
optimism about business conditions, data showed Monday.

Companies listed on the nation's stock market invested a combined 8.5 trillion
won (US$7.3 billion) in new plants and equipment in the July-September period,
compared with 1.1 trillion won the previous quarter, according the data by the
Korea Exchange (KRX).
In the first quarter, corporate facility investments reached 3.7 trillion won.
Analysts said the increased spending came as companies scurried to expand and
upgrade their facilities to brace for an expected economic upturn after holding
back new investment in the first half of this year.
Increased corporate spending indicates firms are betting on strong economic
activity down the road, they said.
"Companies tend to boost investment when the economy advances from a recovery to
a boom because they want to take the lead," Hwang Kum-dan, an analyst at Samsung
Securities Co. said.
In the third quarter, the biggest investor was tech giant LG Display Co. with 3.3
trillion won of investment to expand production lines for liquid crystal
displays, according to the data.
pbr@yna.co.kr
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