S. Korea to invest US$7 bln in energy development in 2009

SEOUL, Jan. 5 (Yonhap) -- South Korean companies are planning to increase
overseas investment on energy development projects this year by over 20 percent
despite ongoing financial instability and a rapid economic downturn, the
government said Monday.

According to the Ministry of Knowledge Economy, around $7 billion is expected to
be invested in developing energy sources this year, up 22.8 percent from the $5.7
billion spent last year.
The sharp increase is due to a general consensus among local firms companies'
general consensus that the current financial instability and economic challenges
provide a "right" opportunity for investment, the ministry said.
Of the amount, $5.2 billion will be spent in the oil and gas energy development
projects with $1.8 billion to be invested in developing major mineral resources
including copper and coal, according to the ministry.
To facilitate the investments, the ministry said that it will provide diverse
financial support to companies through state-run financial institutions.
The ministry added that it will accelerate efforts to purchase stakes in global
oil fields in return for providing world-class drill ships and other shipbuilding
technology to oil-producing countries.
In 2008, South Korea secured a total of 71 energy development projects worldwide
through joint efforts with other nations, according to the ministry.
kokobj@yna.co.kr
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