Top 10 Manufacturing Industries to Invest 122 Trillion Won Domestically This Year..."Comprehensive Support for Electricity Rates, Tax Benefits, and Subsidies"

Semiconductors and Automobiles Drive Investment Growth
Third-Quarter Execution Rate Remains Solid at 68%

The government has begun a follow-up review of domestic investment trends in the top 10 manufacturing industries this year, aiming to maintain the momentum of expanding corporate investments.

On December 1, Minister of Trade, Industry and Energy Kim Jeonggwan held a "Public-Private Joint Industrial Investment Strategy Meeting" with leading companies from the top 10 manufacturing sectors, including semiconductors and automobiles. The meeting focused on this year's investment plans, the status of implementation through the third quarter, and measures to promote domestic investment. This meeting was a continuation of the "Public-Private Joint Follow-up Meeting on Korea-U.S. Tariff Negotiations" presided over by the President on November 16.

This year's investment plans for the top 10 manufacturing industries have been recalculated at 122 trillion won, an increase of 3 trillion won from the initial survey at the beginning of the year (119 trillion won). Despite growing demand for overseas investment due to high U.S. tariffs and global supply chain restructuring pressures, the total scale increased as previously undecided investment plans in the automobile and battery sectors were finalized early this year. The investment execution rate through the third quarter remained strong at 68%, the same as the previous year. Investments in major sectors such as semiconductors, batteries, and displays are being carried out at a rapid pace.

The top 10 manufacturing industries account for about half of all industrial facility investments, and have shown a steady upward trend over the past three years. Facility investment reached 100 trillion won in 2023, 110 trillion won in 2024, and has expanded to 122 trillion won this year. Semiconductors and automobiles, which account for 80% of the planned investments, are driving this growth. In the semiconductor sector, investments are expanding around advanced memory such as HBM due to rising global AI demand, while the automobile industry is accelerating facility and technology investments to increase its share in the electric vehicle market.

Companies attending the meeting requested that the government maintain the upward trend in domestic investment by swiftly disbursing electric vehicle subsidies, expanding policy-based financial support, introducing a direct refund system for investment tax credits, and lowering electricity rates.

Minister Kim stated, "In an era where countries compete to attract companies, domestic investment is the most important indicator and barometer showing that a company belongs to Korea," and urged, "Please make every effort to ensure that planned investments are carried out without setbacks."