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Economic recovery possible after second half of next year

Economic recovery possible after second half of next year

Posted December. 16, 2013 01:47,   


Nine out of 10 large companies predicted domestic economy will recover after July next year. Investment and employment also will not increase in earnest.

According to the survey by the Federation of Koran Industries, 48.4 percent companies out of revenue-based 600 large companies responded economy will be recovered after 2015, and 39.5 percent selected second half next year for economic recovery. The number of respondent companies was 366 out of total 600 target companies.

Questioned on GDP growth rate next year, 58.1 percent of respondents said it will be below 3 percent, which is a more negative prospect than the government (3.9 percent) and Bank of Korea (3.8 percent).

Regarding the question "will you increase investment next year?,” 48.8 percent responded "same or similar investment will be feasible," while "increasing investment" was selected by mere 29.6 percent and "reducing investment" by 21.6 percent.

When it comes to employment, 62.3 percent responded to keep the current level, while 19.3 percent and 18.4 percent companies selected "increasing employment" and "decreasing employment," respectively. This means many companies feel burdened in employment increase under economic uncertainty, considering several labor-related issues such as lawsuits over ordinary salary definition, and extension of retirement age.