With the start of With Corona... 9 out of 10 companies "have not yet made investment plans for next year"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyung-min] According to a survey conducted by the Korea Chamber of Commerce and Industry (KCCI), it was confirmed on the 7th that despite the gradual return to normal life (With Corona) having begun, Korean companies are still facing difficulties in establishing investment plans.

As a result of the 'Corporate Environment Outlook and Response Tasks in the With Corona Era' survey recently conducted by KCCI targeting 316 domestic companies, 56.2% of the companies answered that they "have not even reviewed" whether they have set investment plans for next year.

Only 11.7% of companies responded that they had already established or were in the process of establishing plans, and 32.1% answered that they were currently reviewing them.

The difficulty companies face in establishing investment plans is analyzed to be due to uncertainty in the business environment.

68.0% of the responding companies showed the view that "uncertainty in the corporate environment will continue or expand even in the With Corona era." The answer that it would "ease" was 32.0%.

Regarding how long the recent positive trends such as export expansion and performance improvement will last, 12.0% of the responding companies said "within 3 months," 29.1% said "until the first half of next year." 40.5% expected "1 to 2 years," and only 18.3% believed it would continue for "more than 3 years."

The uncertainties affecting corporate activities included ▲ difficulties in raw material supply and global logistics issues (37.7%), ▲ labor shortages (20.6%), ▲ regulatory environment such as labor and environment (17.1%), and ▲ rapid changes in trade environment (10.1%).

Changes in the digital technology environment (7.6%), the push for 2050 carbon neutrality (5.4%), and increasing demands for ESG (Environmental, Social, and Governance) (1.6%) were also pointed out as factors adding to uncertainty.

Companies believe that to prepare for the future in such a business environment, investment must be further expanded.

When asked "What is the most necessary task to prepare for the With Corona era?" 32.3% of the responding companies answered "active R&D (Research and Development) and investment." "Business structure reorganization" (15.8%) was also cited as an important task, followed by answers such as "solid management" (14.9%), "securing excellent personnel" (14.6%), and "strengthening organizational capabilities" (12.7%).

As for the tasks the government should undertake for companies to effectively respond to an uncertain future, 31.0% of the responding companies chose "price stabilization and resolution of raw material supply difficulties." Next were "economic revitalization" (25.0%), "financial and tax support for corporate investment" (23.1%), "smooth labor supply and demand" (9.2%), "regulatory improvement" (7.6%), and "resolution of trade uncertainties" (4.1%).

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