94% of Korean Companies Perceive Anti-Corporate Sentiment, More Pronounced in Large Corporations

"Anti-Corporate Sentiment Has Not Improved" 76.5%

[Asia Economy Reporter Yu Je-hoon] The vast majority of Korean companies perceive that anti-corporate sentiment exists. In particular, the perceived level of this sentiment was found to be higher among large corporations.

The Korea Employers Federation (KEF) announced on the 28th that it conducted a 'Corporate Perception Survey on Anti-Corporate Sentiment' targeting 109 domestic private companies through Global Research from the 3rd of last month to the 15th of this month, revealing these findings.

According to the survey, 102 companies, accounting for 93.6% of the respondents, recognized that anti-corporate sentiment exists in Korea. The participating companies were categorized by size as follows: 21 companies with over 1,000 employees, 43 companies with 300 to 999 employees, and 45 companies with fewer than 300 employees.

The perceived severity of anti-corporate sentiment was found to be at a serious level. Large corporations with over 1,000 employees scored an average of 83.8 points (out of 100), the highest among the groups, followed by companies with 300 to 999 employees at 61.6 points, and those with fewer than 300 employees at 66.0 points.

Regarding changes compared to the past, 42.2% responded that anti-corporate sentiment has 'intensified,' and 34.3% said it is 'about the same,' indicating that 76.5% believe the sentiment has not improved. By company size, 71.4% of large corporations (over 1,000 employees) reported intensification, compared to 21.0% of companies with 300 to 999 employees, and 39.6% of companies with fewer than 300 employees.

The KEF stated, "In 2018, the Korea Chamber of Commerce and Industry surveyed public favorability toward companies, which scored 53.9 points." It added, "Although direct comparisons are difficult, considering this, it appears that companies perceive anti-corporate sentiment more seriously than the general public."

External factors were cited as the main causes of anti-corporate sentiment. Among the surveyed companies, 55.9% attributed the cause to 'external' factors, while 44.1% pointed to 'internal' factors.

The most common management difficulty caused by anti-corporate sentiment was "increased management burden due to uniform regulatory tightening," with 53.9% of respondents selecting this. Other responses included "strict legal sanctions on companies and entrepreneurs" at 40.2%, "deterioration of cooperative labor-management relations" at 33.3%, and "contraction of proactive business decisions such as business expansion" at 19.6%. The KEF analyzed that this is due to an increase in regulatory policies and legislation based on anti-corporate sentiment by the government and National Assembly.

Regarding current efforts to improve relations with the public, among large corporations with over 1,000 employees, "strengthening social responsibility activities such as social contributions" was the most common response at 66.7%, while among companies with fewer than 300 employees, "establishing internal ethical management such as compliance management" was the most frequent at 53.5%.

Beyond corporate efforts, the most urgent tasks to resolve anti-corporate sentiment were identified as "improving and promoting public awareness of the role of companies" at 30.4%, and "activating proper market economy education" at 27.5%. As for entities that should play a role in resolving anti-corporate sentiment beyond companies, "the National Assembly and political circles" accounted for 32.4%, and "the government" for 31.4%.

The KEF stated, "To prevent anti-corporate sentiment from repeatedly undermining corporate management, we plan to encourage proactive social responsibility practices by Korean companies, such as ESG and transparent and ethical management." It added, "Along with this, we will take the lead in activities to improve public awareness through media promotion, public campaigns, and economic education, striving to become companies that work with the public and are loved by the people."

Meanwhile, the KEF will hold a symposium titled "Anti-Corporate Sentiment in Korea: Diagnosis of Causes and Improvement Measures" on the 1st of next month at the Press Center in Gwanghwamun, Seoul, inviting experts from various fields.

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