By Yoon Ja-young
Staff Reporter

Conglomerates piled up cash reserves last year, as they refrained from investing despite good performances amid the global financial crisis.

This year, however, many of them are planning huge investments.

The cash equivalent assets of 15 large businesses totaled 42.1 trillion won as of the end of last year, up 46.7 percent from the previous year.

The firms are Samsung Electronics, Hyundai Motor, Kia Motors, Samsung SDI, Samsung Electro-Mechanics, LG Electronics, SK Telecom, POSCO, Korean Air, GS Engineering & Construction, NHN, Hynix, SK Energy, Hyundai Mobis and Hyundai Steel.

Samsung Electronics, which rose as the world's largest technology company by edging HP and Siemens in sales, had cash equivalent assets at 12.4 trillion won, up 87.9 percent from a year ago.

Hyundai Motor held 7.4 trillion won in cash assets, up 46.8 percent, and POSCO saw cash assets increase by 79.1 percent to 6.8 trillion won.

Among the 15 businesses, only SK Energy and Hyundai Mobis had cash assets decrease from a year ago.

Korean conglomerates, most of whom are huge exporters, marked good performances last year despite the global crisis as exports increased upon the weakening of the Korean currency.

The business-friendly President Lee Myung-bak administration has urged the conglomerates to increase investments on many occasions to help boost the economy, but the conglomerates have been reluctant to do so.

However, they are expected to become more aggressive this year and increase investments as the economy is recovering. According to the Federation of Korean Industries, the country's top 30 conglomerates plan to invest 87 trillion won this year, up 16.3 percent from last year.

"The quick recovery of the economy and decreasing uncertainties in the global economy will have a positive effect on facility investment," said Lee Chan-young, an analyst at Samsung Economic Research Institute.

According to the Ministry of Knowledge Economy, businesses are especially eyeing investments in new growth engine industries, such as LED, bio-medicine and renewable energy. Investments in those sectors are expected to grow 8.3 percent this year.

chizpizza@koreatimes.co.kr