SEOUL, Feb. 18 (Korea Bizwire) – One out of four South Korean companies plan to reduce their workforces this year to save costs, bracing for the grim reality of sluggish exports and dull domestic consumption, a poll showed Thursday.
According to the survey by online recruiting agency Saramin on 307 human resource officials, 23.8 percent said they plan to cut their staffs this year. Among them, 41.1 percent reduced their workforces last year as well.
With nearly half of the respondents opting for voluntary retirement, 32.9 percent were set to advise subjected employees to resign and 12.3 percent preferred having their workers retire early with extra severance pay, it showed.
Six of them said they will hire new employees at the same time they carry out the restructuring.
Concerns over a prolonged period of low growth in Asia’s fourth-largest economy have risen as major exporters have grappled with tougher competition and muted demand stemming from the global economic slowdown.
Following a dismal performance in 2015, South Korea reported a plunge in exports in January mainly because of faltering demand amid low oil prices and a slowdown in China, its top export destination.