Corporate capital spending forecast to grow 3.6% in 2022

South Korea's corporate capital spending is expected to expand nearly 4 percent in 2022 on a recovery in manufacturing activity and private consumption, a poll showed Wednesday.

The survey of 3,700 big, midsize and small companies, taken by the state-run Korea Development Bank (KDB), showed their combined facility investments will likely reach 186 trillion won ($158 billion) next year, up 3.6 percent from this year.

"The country's corporate capital spending is likely to keep growing in the coming year thanks to a rebound in manufacturing business and consumer spending," the KDB said.

According to the findings, the chip, display and steel industries are projected to take the lead in next year's increased capital spending.

Chipmakers' facility investments are estimated to reach 57.1 trillion won in 2022, up 3 percent from a year earlier.

Display firms' capital spending is projected to surge 35.8 percent on-year to 11.8 trillion won, with that of automakers likely to swell 6.3 percent to 7.7 trillion won.

Transportation companies' facility investments are forecast to amount to 13.3 trillion won next year, up 17.2 percent from this year. (Yonhap)