Synopsis
A significant number of South Korean firms predict serious economic challenges for the nation in 2025 due to declining business conditions, according to a recent poll. The survey reveals that many businesses anticipate worse economic conditions than those faced during the 1997 financial crisis, highlighting the impact of political instability.Key Takeaways
- 96.9% of firms predict economic challenges in 2025.
- 22.8% expect conditions worse than the 1997 crisis.
- 47.2% cite weakened export competitiveness.
- Government to provide 25 billion won in export vouchers.
- Support for SMEs includes consulting and exhibition participation.
Seoul, March 6 (NationPress) A large portion of South Korean enterprises foresee the nation facing major economic challenges this year due to worsening business conditions, according to a recent survey released on Thursday.
In a poll carried out by the Korea Enterprises Federation (KEF) involving 508 businesses with over 50 employees in January, a striking 96.9 percent of the participants indicated that they expect the country to face economic hardships in 2025, as reported by Yonhap news agency.
Among those surveyed, 22.8 percent anticipated that the severity of the economic challenges would surpass that experienced during the 1997 financial crisis, while 74.1 percent predicted substantial economic difficulties, albeit not as severe as those during 1997.
When queried about the adverse economic effects stemming from the ongoing political instability in the country, 47.2 percent pointed to diminished export competitiveness due to rising foreign exchange fluctuations, followed by 37.8 percent who cited a decline in consumer sentiment and 26 percent highlighting investment uncertainties.
Concerning financial pressures and regulatory hurdles, 38.4 percent of businesses mentioned increased labor costs, while 28.3 percent pointed to stringent industrial safety regulations.
"Given the tightening of global trade regulations and the domestic political climate, our businesses are encountering an increasingly unpredictable landscape," a KEF official stated, urging the government to implement regulatory reforms to foster corporate investment and job creation.
Additionally, the government plans to distribute export vouchers totaling 25 billion won ($17.3 million) to small and medium-sized enterprises (SMEs) this year as part of efforts to enhance South Korea's export capabilities, the industry ministry announced on Thursday.
These export vouchers will be allocated to 300 businesses to assist them in expanding their international presence and improving their export competitiveness, according to the Ministry of Trade, Industry and Energy.
The vouchers will encompass business consulting services, support for participation in various exhibitions, and assistance with international shipping.
The ministry noted that Korean companies involved in this program last year achieved a record $14.7 billion in exports to their target markets.
"We will support medium-sized firms in their transition to export companies even in the face of unstable trade conditions and provide additional support to promising new businesses," stated Park Duk-ryul, director general of midsized corporate policy at the ministry.
