Optimism in the Face of Global Challenges

Despite the shadow of global economic uncertainties, particularly from U.S. tariff policies, a recent survey reveals that Korean companies are holding a positive outlook for the second half of the year. The Federation of Korean Industries (FKI) shared insights from their "2025 Second Half Business Survey," indicating a majority expect conditions to remain stable or improve.

Survey Highlights

Out of 152 responding companies, 53.3% anticipate business conditions to be similar to the first half, while 30.2% foresee improvement. However, 16.5% predict a downturn, with most expecting recovery by Q1 2026.

Identifying Risks and Strategies

Key concerns include weak domestic demand, global trade uncertainties, and rising raw material costs. In response, companies are focusing on cost reduction, operational efficiency, and strengthening overseas market presence to navigate these challenges.

Government's Role in Supporting Growth

Businesses are calling for government action to stabilize supply chains, support exports, and stimulate domestic demand. Emphasizing the need for deregulation and increased flexibility in the labor market, companies are looking for policies that foster long-term growth and innovation.

Looking Ahead

With companies cautiously optimistic, the emphasis is on efficiency and risk management. The FKI underscores the importance of timely government intervention to sustain investment and employment levels, ensuring Korea's economic resilience in a fluctuating global landscape.