A survey reveals that 46 p.c of enterprise websites with 300 or extra workers, categorised as massive companies, plan to broaden abroad funding subsequent yr. In distinction, solely 25 p.c plan to broaden home funding and 40 p.c are contemplating decreasing funding, elevating considerations of “industrial hollowing-out.”
On Nov. 30, the Korea Enterprises Federation (KEF) introduced the outcomes of the “2026 Company Administration Outlook Survey” performed with chief government officers (CEOs) and executives from 229 corporations with 30 or extra workers. Sixty-eight corporations with 300 or extra workers and 161 corporations with fewer than 300 workers participated.
In line with the survey, amongst corporations with 300 or extra workers, 40 p.c responded that they would cut back home funding. Solely 25 p.c answered that they’d broaden home funding, and 35 p.c mentioned they’d preserve the present stage. In the meantime, 45.7 p.c mentioned they’d broaden abroad funding. Twenty-six-point-one p.c mentioned they would cut back abroad funding, and 28.3 p.c mentioned they’d preserve the present stage.
Relating to total administration plans for subsequent yr, 41 p.c of huge companies mentioned they’d undertake “austerity administration.” The response charges for sustaining present standing and increasing administration had been equivalent at 29.5 p.c. Nonetheless, amongst corporations with fewer than 300 workers, “sustaining present standing” was the most typical reply at 45 p.c, whereas the shares deciding on austerity administration and expansionary administration had been related at 26.1 p.c and 28.8 p.c, respectively. Throughout all surveyed corporations, 31.4 p.c mentioned they plan “austerity administration” subsequent yr, however that is 18.3 proportion factors decrease than final yr’s survey. Expansionary administration got here in at 29.1 p.c, up 6.8 proportion factors.
Amongst corporations contemplating austerity administration subsequent yr, 61.1 p.c had been reviewing the “rationalization of workforce operation” as a concrete measure. Subsequent had been “company-wide price discount” at 53.7 p.c and “discount of recent funding” at 37 p.c.
Corporations forecast the common progress price of the South Korean financial system subsequent yr to be 1.6 p.c, decrease than projections by the BOK at 1.8 p.c and the Korea Institute for Industrial Economics and Commerce at 1.9 p.c. As for when the home financial restoration will grow to be full-fledged, 52.8 p.c cited subsequent yr, whereas 31.0 p.c projected 2027 or later.
