Public firms to expand 2009 investment to spur economy

SEOUL, Dec. 30 (Yonhap) -- Major public companies will increase their investment for next year by nearly 20 percent and frontload the spending in the first half to help resuscitate the slumping local economy, the government said Tuesday.

In their 2009 business blueprints jointly submitted to President Lee Myung-bak,
25 public companies said that they will invest a combined 57 trillion won
(US$45.4 billion) next year, up 18.5 percent or 9 trillion won from this year,
according to the Ministry of Strategy and Finance.
The companies include 13 energy companies and 7 social overhead capital firms.
Korea Electric Power Corp., Korea Hydro & Nuclear Power Co. and Korea Railroad
and Korea National Housing Corp are among them.
Of the envisioned spending, the public firms will invest a total of 40.4 trillion
in building expressways, railways and other social infrastructure facilities, up
from this year's 34.4 trillion won, the ministry said.
To expand energy-related facilities, 14.7 trillion won will be set aside for next
year, compared with 12.1 trillion won for this year. Around 2 trillion won will
be spent in the agriculture, culture and other sectors, according to the
ministry.
In a bid to help the nation tide over an economic downturn, the public companies
plan to frontload 61 percent of the investment in the first half, the ministry
said.
"Considering that our economy faces a difficult situation, the public sector
needs to respond swiftly and actively (to help overcome the challenge). The
investment expansion and its frontloading move are intended for the very
purpose," a finance ministry official said.
Meanwhile, nine state-run financial institutions also submitted their 2009
business plans, under which they set aside a combined 25 trillion won more for
additional loan support next year and assigned extra 55 trillion won for export
insurance and guarantee.
South Korea has 305 public institutions. Except the 25 public firms and the nine
state-owned financial companies, the rest are to submit their 2009 business
blueprints by Jan. 5, the ministry said.
kokobj@yna.co.kr
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