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by IANS |
Seoul, Feb 12 (IANS) South Korean companies in 10 key manufacturing sectors, including the semiconductor industry, plan to invest a combined 119 trillion won ($81.8 billion) this year to foster sustainable growth, the industry ministry here said on Wednesday.
The figure marks a 4 percent increase from the 114 trillion-won investment made in those sectors last year, according to the Ministry of Trade, Industry and Energy, reports Yonhap news agency.
The sectors include automobile, display, rechargeable battery, steel, biology, petrochemical, shipbuilding, machinery and robotics, and textile.
The semiconductor industry is expected to increase investment in advanced memory business to respond to robust chip demand sparked by the growth of the artificial intelligence (AI) technology.
The automotive industry plans to expand investment in electric vehicle (EV) transition.
The secondary battery and steel industries, however, will likely decrease their investment due to sluggish demand and oversupply issues.
Detailed plans for the envisioned investments were not disclosed to protect the companies' trade secrets.
"It is important to make strategic overseas investments amid the intensifying global trade war, but the companies also have to value domestic investment to create jobs and resolve supply chain uncertainties," Industry Minister Ahn Duk-geun said.
Ahn called on the companies to pay particular attention to investment in AI as the fast-evolving technology could bring innovations across various industries.
Meanwhile, from planned levies on steel and aluminium imports to threats of duties on cars and chips, U.S. President Donald Trump's tariff-based policy approach is sending South Korea scrambling to navigate through it and keep the bilateral partnership steady and sturdy.
After slapping a 10 per cent tariff on Chinese imports, Trump appeared to be shifting his attention to South Korea and other trading partners with plans to reinstate a 25-per cent tariff on steel imports and raise the tariff rate on aluminium imports to 25 per cent from 10 per cent -- both starting March 12.
On top of those plans, he noted that his administration will announce "reciprocal tariffs" this week, while weighing new tariffs on vehicles, chips and pharmaceuticals, raising the prospects of friction with key suppliers of those items, including South Korea.
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