Major Businesses Cut Back on Investment, Hiring

Major businesses in Korea cut back on both investment and hiring during the first half of this year.

According to corporate tracker Chaebul.com on Wednesday, the total number of workers employed by the nation's top 10 conglomerates fell 0.7 percent to 641,390 by the end of June compared to the previous half.

Samsung topped the list with 6,176 layoffs by the end of June, a 3.2 percent decline from December. Among the subsidiaries, Samsung Heavy Industries cut the most staff with 1,619, followed by Samsung Electronics with 1,478. Samsung Corporation, which was taking applications for voluntary retirement, laid off 910 workers, and Samsung Electro-Mechanics 797 workers.

Hyundai Heavy Industries laid off 1,062 employees, POSCO 170 and GS 83.

But Hyundai Motor increased its workforce by 1,339 to 138,836. SK, LG and Lotte groups also hired 410, 165 and 161.

Investments also shrank, according to market researcher CEO Score, from W39.8 trillion in the first half of last year to W28.7 trillion by the end of June this year, down 28 percent (US$1=W1,108).

Samsung invested W10.3 trillion in the first half of last year but only W7.6 trillion this year, down 26.2 percent.

Hyundai's investments fell from W10.1 trillion to W3.9 trillion.