It was found that 9 out of 10 Korean companies set the direction of next year’s management plan as tightening management or status maintenance.
This is the result of the ‘2021 Business Outlook Survey’ announced by the Korea Employers Federation on the 20th. The survey was conducted on 212 companies with 30 or more employees nationwide. As a result of the survey, 49.2% and 42.3% of the respondents said that the business plan for next year would be’constricted’ or’maintain the status quo’, respectively. Only 8.5% of respondents said they would do’expanded management’. However, this is the story of the companies that have made business plans. Among the surveyed companies, only 61.3% of respondents said they had finalized or drafted the next year’s management plan. The remaining 38.7% means that the draft could not be established due to uncertainty.
As the economic recession hits Corona 19, empty stores are rapidly increasing in shopping districts around Sinchon Station in Seoul. Reporter Kim Na-yoon
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In particular, it was investigated that companies that chose’strict management’ prioritize reducing new investments and rationalizing manpower management in order to cope with internal and external uncertainties. When asked about investment and recruitment plans for next year targeting companies with business plans, more than 60% of the respondents said that they will reduce from this year. In the case of investment plans, 60.0% answered’reduction compared to this year’, followed by’this year’s level’ (30.0%) and’expanding compared to this year’ (10.0%). Recruitment plans were also’reduced compared to this year’ (65.4%),’level of this year’ (28.5%), and’expanded compared to this year’ (6.2%).
On the other hand, 44.8% of respondents answered that the forecast of Korea’s economic growth rate for next year was’over 2.5% to less than 3.0%’. The average forecast of the economic growth rate of respondents was 2.8%. There were many prospects that the rapid economic recovery would not be as easy as expected. When asked about the timing of recovery before the new coronavirus infectious disease (Corona 19) crisis, 37.3% of responding companies cited’after 2023′. They then answered in the order of’the second half of 2021′ (23.1%),’already recovered’ (17.9%), ‘2022’ (13.2%), and’first half of 2021′ (8.5%).
It is expected that next year’s operating profit will decrease from this year by 52.8% of respondents. 27.8% of respondents said that their operating profit will increase from this year, and 19.3% of companies said it will be similar to this year’s. An official from the economic affairs office said, “The uncertainty is expected to continue for the time being so that there are four out of ten companies that have not even drafted next year’s management plan.”
Reporter Lee Soo-ki [email protected]
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