Last Year's Investment Performance in Top 10 Manufacturing Industries: 114 Trillion Won... This Year's Target: 119 Trillion Won

"Semiconductors and Automobiles Lead Domestic Investment"

The Ministry of Trade, Industry and Energy announced on the 12th that the investment performance of the top 10 manufacturing industries last year reached 114 trillion won, exceeding the initial plan of 110 trillion won.

The top 10 manufacturing industries include semiconductors, automobiles, displays, secondary batteries, petrochemicals & refining, steel, bio, shipbuilding, machinery & robotics, and textiles. The investment scale of these industries accounts for 4% of GDP and 42% of total industrial facility investment.

The ministry explained, "Despite difficult conditions such as increased financing costs due to prolonged high interest rates and rising capital goods import prices caused by a high exchange rate last year, semiconductors and automobiles led domestic investment."

This year's investment plan for the top 10 manufacturing industries is 119 trillion won, a 7% increase from last year's 110 trillion won. Semiconductors plan to increase investment centered on advanced memory to respond to the solid growth of global AI demand, and automobiles are expected to expand investment in electric vehicle transition to prepare for the future. However, investments in secondary batteries and steel are expected to shrink due to demand slowdown and oversupply.

On the same day, Minister An Deok-geun of the Ministry of Trade, Industry and Energy held the '5th Industrial Investment Strategy Meeting' together with representatives of the top 10 manufacturing companies such as semiconductors and automobiles, the Korea Chamber of Commerce and Industry, and the Korea Institute for Industrial Economics & Trade to discuss last year's investment performance, this year's investment plans, and measures to promote domestic investment by industry.

At the meeting, companies commonly raised the extension of the temporary investment tax credit, which failed to pass the National Assembly last year, and financial support to promote domestic investment, and also requested active government support to minimize trade uncertainties.

In response, Minister An said, "While strategic overseas investment is necessary amid the global tariff war situation, considering domestic job creation and supply chain uncertainties as the center of global manufacturing, domestic investment is important," adding, "We will fully support our companies to steadily increase domestic investment." He also urged, "Please pay close attention to the changes and opportunities brought by the AI revolution and do not miss out on AI-related investment as a key means of manufacturing innovation."