The entrance of the Federation of Korean Industries in Seoul (Image courtesy of Yonhap)
SEOUL, Dec. 4 (Korea Bizwire) — About half of big firms in South Korea remain undecided on their investment plans for next year, according to a survey released Monday, an indication of how many companies are going through economic uncertainties.
In the survey conducted by polling agency Mono Research on the leading 500 companies in terms of sales from Nov. 16-24, 49.7 percent responded they remain undecided on next year’s investment plans.
Also, 5.3 percent of the respondents said they have no investment plans next year.
The poll was commissioned by the Federation of Korean Industries, South Korea’s leading business lobby.
Of the firms that confirmed investment plans, 61 percent said next year’s investments will remain similar to those in 2023, while 28.8 percent responded that they will increase spending in 2024.
Companies remaining undecided or with plans to reduce investment cited economic uncertainties, a rise in raw material costs and difficulties in financing as key factors.
The surveyed firms cited high interest rates as the top detracting factor in investment for 2024, followed by inflationary pressure, the depreciation of the local currency and the slowdown of the global economy.
(Yonhap)
