6 out of 10 US Companies in Korea Reduce Investment and Employment Due to COVID-19

[Asia Economy Reporter Dongwoo Lee] Among American companies operating in Korea, 62% have reduced their investment and employment plans in Korea compared to last year.

The American Chamber of Commerce in Korea (AMCHAM) announced the results of the 'Post-COVID Business Environment Survey' conducted on the 26th targeting 117 AMCHAM member companies.

Among member companies, 34% of American companies in Korea responded that their investment and employment plans in Korea have significantly decreased compared to last year, and 28% said they slightly decreased. 28% reported that their investment and employment plans remained at the same level as last year, and 10% increased their plans.

According to AMCHAM's survey, only 26% of American companies in Korea responded that their Q2 business performance outlook met or exceeded their existing targets. Meanwhile, companies whose outlook was at least 75% of their existing targets accounted for 38% of the total. Companies reporting less than half of their existing targets accounted for 28%.

Additionally, 43% of these companies expect it will take more than one year to recover their performance. ▲'6 months to 1 year' was 33%, ▲'3 months to 6 months' was 29%, and ▲'less than 3 months' was 5%.

The factor having the greatest impact on companies was 'disruptions to business trips and event operations' (90%, multiple responses allowed). ▲Decrease in buyers (56%) ▲Disruptions in raw material supply and distribution (33%) ▲Deterioration of cash liquidity and finances (28%) were also cited as influential factors. However, 89% positively evaluated the Korean government's transparent measures related to COVID-19.

The most needed government support measure was corporate tax reduction or refund this year (51%). Emergency support policies for affected industries (38%) and employment retention subsidies (30%) followed.

Meanwhile, AMCHAM held the '2nd AMCHAM Domestic Business Environment Seminar' at the Grand Hyatt Hotel in Yongsan-gu, Seoul on the same day to discuss ways to revitalize investment after COVID-19.

This content was produced with the assistance of AI translation services.