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S. Korea's 2010 biz investment growth ranked No. 1 in OECD: report

All Headlines 14:12 June 27, 2011

SEOUL, June 27 (Yonhap) -- South Korea's business investment growth ranked No. 1 among the world's developed market economies last year, a report by the Federation of Korean Industries (FKI) showed Monday.

The report, based on data provided by the Organization for Economic Cooperation and Development (OECD), showed the country's facility investment surged 21.3 percent on-year in 2010, the highest increase among 23 countries checked and far higher than runner-up Estonia, which posted investment growth of 14.1 percent.

The United States came in third with facility investment growth reaching 13.1, followed by Britain with 11.5 percent.

South Korea's investment measured in national account terms reached 116.8 trillion won (US$108.1 billion), with 92.4 trillion won being injected into various machinery and the rest being used on transportation-related equipment.

Machinery investment shot up 26.1 percent on the strength of more information technology products, autos and manufacturing machinery being produced in the one-year period, the report said.

Investment in the transportation sector gained 6.2 percent compared to the year before, with most of the money being used to buy trucks and other business-related vehicles.

While the global financial crisis caused facility investment in OECD countries to nose-dive 19.5 percent in 2009 -- 18.5 percent among the Group of Seven most industrialized economies -- South Korea's numbers only contracted 1.2 percent in the cited year, the FKI added.

"Business investments added 2.3 percentage points to last year's economic growth that reached 6.2 percent," an FKI official said. "This represented a significant contribution to national growth."

The official said overall business investments in 2010 were equivalent to 10.1 percent of South Korea's gross domestic product, up from 9.5 percent in the previous year.

The official also said the country's gross domestic investment ratio, which represents actual money invested from total disposal funds, reached 29.2 percent, higher than 16.1 percent and 14.7 percent for the U.S. and Britain, respectively.

yonngong@yna.co.kr
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