Only 49% of South Korean CEOs expressed optimism about global economic growth. (Image courtesy of Yonhap)
DAVOS & SEOUL, Jan. 22 (Korea Bizwire) — A majority of global CEOs are optimistic about economic growth in the year ahead, according to a new survey by PwC presented at the World Economic Forum in Davos, Switzerland.
The survey, which polled 4,701 CEOs across 105 countries, found that 58% expect global economic expansion in 2025, a significant rise from 38% in 2024 and a dramatic rebound from just 18% two years ago.
The report highlights the growing influence of generative artificial intelligence (AI) on business performance. Over half of global CEOs reported that AI adoption has boosted employee productivity, while 32% credited it with increasing revenue and 34% noted improved profitability.
AI is emerging as a critical component of corporate strategies, with many leaders viewing it as a transformative force for their industries.
Korean CEOs Exhibit Caution Amid Global Optimism
In contrast, only 49% of South Korean CEOs expressed optimism about global economic growth, falling below the global average of 58%. Additionally, 40% of Korean respondents predicted economic deterioration—nearly double the global average of 22%.
PwC attributes this cautious outlook to South Korea’s export-reliant economy, which remains vulnerable to external risks such as trade tensions, currency fluctuations, and volatile raw material prices. Structural challenges, including a declining birth rate and aging population, have also constrained domestic market growth.
Korean businesses lag behind their global counterparts in leveraging AI. While 56% of global CEOs observed increased employee efficiency due to AI, only 11% of Korean CEOs reported revenue growth, and just 6% saw profitability improvements.
Similarly, only 3% of Korean respondents noted workforce expansion due to AI, compared to a global average of 17%.
Talent Shortages and Geopolitical Risks
As AI-driven digital transformation accelerates, securing and retaining talent has become a top priority for global CEOs. This year, talent shortages emerged as a new and significant concern, with leaders emphasizing that competition for skilled workers will be pivotal for corporate survival and growth.
Korean CEOs, however, identified geopolitical risks as a more pressing challenge, reflecting South Korea’s dependence on global supply chains and heightened sensitivity to international political dynamics. Concerns over escalating tensions in the region, particularly with the anticipated geopolitical shifts in the coming years, were also evident in the survey responses.
Innovation as a Survival Imperative
The survey also revealed that 40% of CEOs globally believe companies that fail to innovate could face closure within a decade. This figure underscores the urgency of continuous adaptation in an increasingly competitive landscape.
“Generative AI’s transformative potential is evident across industries,” a PwC representative noted. “Maximizing its productivity benefits will be a key challenge for businesses worldwide.”
As global optimism grows, South Korean businesses face the dual challenge of addressing structural vulnerabilities and embracing innovation to maintain their competitive edge in a rapidly changing economic environment.
Ashley Song (ashley@koreabizwire.com)
