November 27, 2018 12:37
Most Korean businesses expect their earnings to drop this year or at best stay the same as last year, a poll suggests.
Some 74 percent of 362 Korean companies in the survey by the Federation of Korean Industries out Monday said they expect their sales for this year to remain similar or drop.
Forty-seven percent of large companies and 63 percent of smaller firms attribute their weak sales to a drop in consumption both at home and abroad. Some 33 percent of large firms also cited government policies like the minimum wage hike and shorter working week, while 22 percent of smaller companies blamed excessive competition.
Asked about risk factors to management, the respondents said they are more affected by domestic economic conditions (51 percent) and overseas conditions (31 percent) than any internal issues in their organization (17 percent).
Some 26 percent said weak domestic demand is the biggest risk, followed by red tape (21 percent) and the global economic slowdown caused by the trade war between the U.S. and China (20 percent).
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