Korean CEOs expect next year’s economy to decline to a level worse than that of the Asian financial crisis -- and not recover until 2010.

According to a survey by the Korea Employers Federation of 188 CEOs of its member companies on Thursday, 67 percent of respondents considered the current economy as being in “severe stagnation,” while 49 percent expected an economy worse than that of the 1998 financial crisis.

In addition, 58.5 percent of those surveyed said the economy would not recover until 2010, while 10.6 percent said it would more likely be after 2011. No one expected the economy to recover in the first half of next year. Asked about next year’s economic growth rate (GDP growth rate), 49 percent predicted a 2-percent level while 20 percent forecast a 1-percent growth rate. Some 19 percent of respondents even foresaw minus growth.

Investment and employment levels are also expected to plummet in 2009. Up to 63 percent of the CEOs plan to cut their investments next year, a significant drop from last year’s 20 percent. As many as 8 percent even said they will not make any new investments. Some 61 percent of respondents also expect to see unemployment rise.

On the question of restructuring, 47.1 percent said it is already underway or planned. But rather than resorting to layoffs, companies are more focused on stabilization by avoiding recruiting new workers and adjusting wages.

(englishnews@chosun.com )