South Korea: Companies are pessimistic about Trump’s return

South Korean news agency Yonhap reported that in an annual survey of 239 companies with at least 30 employees, 82 percent said that Korean economy It will be negatively affected by the protectionist policies adopted by the new administration of President Trump, as Seoul’s economy depends on exports, according to the Korea Business Association.

Only 7.5 percent said the Korean economy would benefit from Trump’s re-election thanks to his policies toward China, which are expected to be aimed at curbing growth in the world’s second-largest economy.

Amid uncertainty about the economy, 49.7 percent of respondents said… Companies They plan to go into “belt-tightening” mode next year, while 28 percent and 22.3 percent plan to maintain the status quo and expand their businesses.

The Union said Korean companies The rate of companies turning to management is the highest since 2019.

Among the savings measures, the most mentioned is the reduction of costs with 66.7 percent, followed by the efficient use of labor force with 52.6 percent and the reduction of new investments by 25.6 percent.

Local companies expect the Korean economy to grow 1.9 percent next year and begin to recover after 2026, according to the Korea Business Association.