Seoul, March 6
A majority of South Korean companies expect the country to undergo significant economic difficulties this year due to deteriorating business conditions, a poll showed on Thursday.
In the survey conducted by the Korea Enterprises Federation (KEF) on 508 companies with over 50 employees in January, 96.9 percent of responding firms said they expect the country to experience economic difficulties in 2025, reports news agency.
Among the respondents, 22.8 percent expected the level of economic woes to be more severe than during the 1997 financial crisis, while 74.1 percent expected significant economic difficulties, though not on the same level as in 1997.
When asked about the negative economic impact of the country's ongoing political instability, 47.2 percent cited weakened export competitiveness due to increased foreign exchange volatility, followed by deterioration of consumer sentiment at 37.8 percent and investment uncertainty 26 percent.
Regarding financial burdens and regulatory challenges, 38.4 percent of the businesses cited higher labor costs, while 28.3 percent cited strict industrial safety regulations.
"With the tightening of global trade regulations and domestic political instability, our businesses are facing an increasingly unpredictable environment," a KEF official said, while urging the government to introduce regulatory reform measures to encourage corporate investment and job creation.