40 pct South Korean conglomerates plan to reduce investments in 2023 - survey
22 Jan 2023 05:26pm
Lorry drivers protest to demand for pay hike in Seoul. - Agency
According to a recent survey by the Korea International Trade Association (KITA), 47 per cent of 1,327 companies having overseas sales of US$500,000 or more last year forecast that business circumstances will deteriorate this year.
Some 16.9 per cent of the respondents expected a turnaround, reported Yonhap news agency.
Over such a gloomy outlook, 29.5 per cent of the companies decided to reduce investment at home in the new year and 27.5 per cent to slash overseas investment.
Of large-sized companies, 43 per cent said they will scale down their investment both at home and abroad, the survey showed.
By sector, 45 per cent of the semiconductor firms surveyed, or the largest share among all sectors, said they will slash fresh investment in 2023, according to the survey.
"The fall in investment by large conglomerates could hurt the country's overall exports performance and corporate competitiveness in the global market. It is needed to swiftly implement various tax incentives and other measures to revitalise investment sentiment," a KITA official said.
South Korea has been struggling with weakening exports momentum and growing trade deficit in recent months on high energy prices, supply chain disruptions and a global economic downturn over aggressive monetary tightening.
In 2022, the country's exports rose 6.1 per cent on-year, but it suffered the largest ever yearly trade deficit. For December, exports fell 9.5 per cent, extending the losing streak to the third consecutive month.
The government said exports are forecast to mark a 4.5 per cent decline in 2023. The Bank of Korea projected in November that the national economy would grow 1.7 per cent in 2023. - Bernama
EDITORS NOTE: Graphic content / A rescue worker is seen near the carriage wreckage of a three-train collision near Balasore, in India's eastern state of Odisha, on June 3, 2023. Photo by Punit PARANJPE / AFP
TOPSHOT - Bullet holes riddle the wall of a building at the Souk Sitta (Market Six) in the south of Khartoum on June 1, 2023. Shelling and aerial bombardments killed 18 civilians at a market in Sudan's capital where fighting showed no signs of abating on June 1, after the army abandoned truce talks. For more than six weeks, Khartoum and other parts of the country have been gripped by bloody warfare between the army and the paramilitary Rapid Support Forces. (Photo by AFP)
KUALA LUMPUR, May 26 - Former national badminton player Datuk Dr Lee Chong Wei (left) with former Chinese badminton player Lin Dan receiving the 'BWF Hall Of Fame 2023' award at the Kuala Lumpur Convention Centre. - BERNAMA photo (2023) COPYRIGHT RESERVED
League of Social Democrats leader Chan Po Ying (C) argues with police officers before being taken away in the Causeway Bay shopping district of Hong Kong on June 4, 2023, close to the venue where Hong Kong people traditionally gather annually to mourn the victims of China's Tiananmen Square crackdown in 1989 which the authorities have banned and vowed to stamp out any protests on the anniversary on June 4. (Photo by Peter PARKS / AFP)