Companies in the pharmaceuticals and biotech, semiconductor, financial services, and oil and chemical industries overwhelmingly consider their primary business areas as promising. (Image courtesy of Kobiz Media)
SEOUL, Feb. 29 (Korea Bizwire) – Amid a worldwide shake-up of industrial sectors, Korean firms are experiencing a range of emotions about the future of their key operations, feelings that vary widely depending on the size of the business and the industry it belongs to.
A recent survey conducted by the Korea Chamber of Commerce and Industry, which encompassed 451 domestic enterprises, revealed that 61.9% of the respondents view the future of their main ventures as promising. Conversely, 38.1% expressed a lack of confidence in their future prospects.
The optimism varies significantly between large corporations and SMEs, with 64.8% of large enterprises and 64.7% of mid-sized businesses expressing a positive outlook, in stark contrast to only 47.7% of smaller companies sharing this sentiment.
The disparity is even more pronounced across different sectors. Companies in the pharmaceuticals and biotech (91.7%), semiconductor (84.8%), financial services (73.8%), and oil and chemical industries (73.3%) overwhelmingly consider their primary business areas as promising.
On the other hand, industries such as shipbuilding (36.4%), steel (50%), chemicals and cosmetics (52%), and construction (52.9%) are less optimistic about their future.
The predominant reason cited by companies skeptical about their core business’s future is market saturation, with 61.6% attributing their pessimism to this factor.
Other concerns include limited market size (16.3%) and inadequate infrastructure, including skilled professionals and regulatory frameworks (11%).
Amid these challenges, nearly half (47.7%) of the companies doubtful about the prospects of their main businesses admitted to lacking a clear strategy for exploring new ventures.
Those in search of new business opportunities are leaning towards strategies such as leveraging new technologies (34.9%) and transitioning to more promising industries from their current sectors (17.4%).
Preferred areas for new business initiatives include artificial intelligence and robotics (14.2%), semiconductors (12.2%), secondary batteries and energy storage (10.9%), and next-generation energy sources (8.2%).
Kim Hyun-soo, head of the economic policy team at the Korea Chamber of Commerce and Industry, emphasized the importance of collaborative efforts between the public and private sectors in devising long-term industrial strategies.
He stressed the necessity for Korean companies to identify stable revenue sources in an increasingly competitive global environment to secure future growth opportunities.
Kevin Lee (kevinlee@koreabizwire.com)
