Seoul, March 6 A majority of South Korean companies expect the country to undergo significant economic difficulties this year due to deteriorating business conditions, a poll showed on Thursday.
In the survey conducted by the Korea Enterprises Federation (KEF) on 508 companies with over 50 employees in January, 96.9 percent of responding firms said they expect the country to experience economic difficulties in 2025, reports Yonhap news agency.
Among the respondents, 22.8 percent expected the level of economic woes to be more severe than during the 1997 financial crisis, while 74.1 percent expected significant economic difficulties, though not on the same level as in 1997.
When asked about the negative economic impact of the country's ongoing political instability, 47.2 percent cited weakened export competitiveness due to increased foreign exchange volatility, followed by deterioration of consumer sentiment at 37.8 percent and investment uncertainty 26 percent.
Regarding financial burdens and regulatory challenges, 38.4 percent of the businesses cited higher labor costs, while 28.3 percent cited strict industrial safety regulations.
"With the tightening of global trade regulations and domestic political instability, our businesses are facing an increasingly unpredictable environment," a KEF official said, while urging the government to introduce regulatory reform measures to encourage corporate investment and job creation.
Meanwhile, the government will provide export vouchers worth a combined 25 billion won ($17.3 million) to small and midsized enterprises (SMEs) this year as part of efforts to expand South Korea's exports, the industry ministry said on Thursday.
The export vouchers will be provided to 300 companies to help them expand their presence in the global market and bolster their competitiveness in exports, according to the Ministry of Trade, Industry and Energy.
The vouchers will include business consulting services and support for participation in various exhibitions, as well as support for international shipping.
The ministry said Korean companies that took part in the program last year posted a record $14.7 billion in exports to their target markets.
"We will help medium-sized firms transform into export companies even amid unstable trade circumstances and provide more support to new promising businesses," Park Duk-ryul, director general of midsized corporate policy at the ministry, said.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor