Over 80% of South Korean Businesses Anticipate Trump's Return Will Detrimentally Affect the Economy
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Seoul, Dec 1 (NationPress) More than 80% of South Korean firms anticipate that Donald Trump's reelection as President of the United States will negatively influence the country's economy, according to a survey conducted on Sunday. In the annual evaluation involving 239 companies with a minimum of 30 employees, 82% expressed that the Korean economy would suffer due to the protectionist policies expected from a second Trump administration, considering the nation's significant reliance on exports, as reported by the Korea Enterprises Federation (KEF).
Only 7.5% of respondents indicated that the Korean economy would gain from his reelection, citing his anticipated China policy aimed at restraining the growth of the second-largest economy in the world, as reported by the Yonhap news agency.
In light of the economic uncertainties, 49.7% of the surveyed companies are gearing up to implement cost-cutting measures in the upcoming year, while 28% and 22.3% plan to maintain their current operations and expand, respectively.
The KEF noted that the proportion of companies adopting austerity measures is the highest since 2019.
Among the austerity strategies, cost reduction was the most frequently cited at 66.7%, followed by efficient manpower utilization at 52.6%, and a reduction in new investments at 25.6%.
Local businesses project that the Korean economy will grow by 1.9% next year and anticipate a recovery starting in 2026, according to the KEF.
Meanwhile, the Bank of Korea (BOK) has revised its forecast for South Korea's economic growth next year to 1.9%, citing slower-than-expected export growth and rising concerns over potential shifts in trade policies from the United States and other leading economies.
The latest estimation reflects a 0.2 percentage-point decrease from its previous projection made in August and falls below the nation's potential growth rate of 2%.
