According to a survey conducted by the Federation of Korean Industries, 40% of South Korean conglomerates are contemplating investing in artificial intelligence (AI) in the coming months. The survey, which involved the 500 largest Korean companies, revealed that 10.6% have already established capital investment plans linked to AI, while 33.3% are considering allocating funds to this field. The primary motivation behind potential AI investments is to enhance production lines and logistics systems for greater efficiency, cited by 43.9% of the respondents. Additionally, 29.3% are looking to invest in new product development and service quality improvement, while 13.8% are focusing on data analysis and strategy building. Despite concerns about high borrowing rates and currency depreciation, there is an improved investment sentiment among Korean firms, particularly in the context of AI investment. Notably, the leaders of major conglomerates such as Samsung Electronics and SK Group are already taking steps towards partnerships and investments centered on AI technology, with Samsung Electronics Chairman Lee Jae-yong reportedly discussing a potential AI partnership with Meta CEO Mark Zuckerberg. SK Group Chairman Chey Tae-won has also engaged in discussions with CEOs of prominent US technology firms to establish a global AI partnership. The survey also indicated that 74.2% of conglomerates plan to maintain the same level of investment as in the first half of the year, while 16.7% intend to increase their investment and 9.1% anticipate a decrease. The survey also highlighted the need for government support in the form of tax breaks and incentives for research and development to stimulate capital allocation for future industries. Looking ahead, 37.1% of respondents expect investment activity to gain momentum in the first half of 2025, with companies pointing to next year for potential investment activation, as major economic indicators are projected to stabilize alongside global economic recovery. The Bank of Korea has forecasted a growth rate of 2.2% for the Korean economy in the latter half of this year, compared to 2.9% in the first six months.
According to a survey conducted by the Federation of Korean Industries, 40% of South Korean conglomerates are contemplating investing in artificial intelligence (AI) in the coming months. The survey, which involved the 500 largest Korean companies, revealed that 10.6% have already established capital investment plans linked to AI, while 33.3% are considering allocating funds to this field. The primary motivation behind potential AI investments is to enhance production lines and logistics systems for greater efficiency, cited by 43.9% of the respondents. Additionally, 29.3% are looking to invest in new product development and service quality improvement, while 13.8% are focusing on data analysis and strategy building. Despite concerns about high borrowing rates and currency depreciation, there is an improved investment sentiment among Korean firms, particularly in the context of AI investment. Notably, the leaders of major conglomerates such as Samsung Electronics and SK Group are already taking steps towards partnerships and investments centered on AI technology, with Samsung Electronics Chairman Lee Jae-yong reportedly discussing a potential AI partnership with Meta CEO Mark Zuckerberg. SK Group Chairman Chey Tae-won has also engaged in discussions with CEOs of prominent US technology firms to establish a global AI partnership. The survey also indicated that 74.2% of conglomerates plan to maintain the same level of investment as in the first half of the year, while 16.7% intend to increase their investment and 9.1% anticipate a decrease. The survey also highlighted the need for government support in the form of tax breaks and incentives for research and development to stimulate capital allocation for future industries. Looking ahead, 37.1% of respondents expect investment activity to gain momentum in the first half of 2025, with companies pointing to next year for potential investment activation, as major economic indicators are projected to stabilize alongside global economic recovery. The Bank of Korea has forecasted a growth rate of 2.2% for the Korean economy in the latter half of this year, compared to 2.9% in the first six months.