This file photo shows the buildings of South Korea’s major companies in Seoul. (Yonhap)
SEOUL, Dec. 13 (Korea Bizwire) — Nearly half of South Korea’s large companies have yet to come up with their investment plans for next year due mainly to high economic uncertainty, a poll showed Monday.
The survey of 101 big firms out of the country’s top 500 companies showed 49.5 percent having no investment plans for 2022 or having not decided on their investments.
The poll was commissioned by the Korea Economic Research Institute, the research arm of South Korea’s conglomerate lobby Federation of Korean Industries.
Nearly 32 percent of them have cited a murky economic outlook amid the coronavirus pandemic or termination of their major investment projects.
Other reasons include a deterioration in the trade climate stemming from the reorganization of the global supply network with 19.7 percent and the lack of room for investment due to worsening business conditions with 12.1 percent.
The remainder cited excessive regulation and a shortage of incentives for corporate investment.
Of the companies that have established 2022 plans, 62.7 percent said next year’s investments will remain at this year’s levels.
Slightly over 31 percent answered they will increase investments in the coming year, while 5.9 percent replied they will cut back on their investments.
Nearly 64 percent of the top 500 firms cut their investments in the first nine months of this year from a year earlier due to the spread of COVID-19.
Meanwhile, the surveyed companies also gave 65.7 points out of 100 to the investment climate in Asia’s fourth-largest economy.
(Yonhap)
