61% of companies have no hiring plans or remain undecided

The ongoing hiring slump is expected to deepen in the first half of this year, as a growing number of South Korean companies put recruitment plans on hold amid economic uncertainties. According to a survey conducted by the Federation of Korean Industries (FKI) from February 4 to 13, 61.1% of the country’s top 500 companies reported having no concrete hiring plans or remaining undecided about recruitment in the first half of 2025. Of the respondents, 41.3% stated they had no hiring plans at all, while 19.8% said their recruitment plans were still undecided—marking year-over-year increases of 3.9 and 2.7 percentage points, respectively.

Among companies with recruitment plans, 28.6% indicated they would scale back hiring compared to last year, while only 12.2% said they would expand their workforce. Meanwhile, 59.2% said they would maintain hiring levels consistent with 2024.

When asked about the primary reasons behind the worsening job market, 51.5% of companies cited heightened economic uncertainty both domestically and globally, coupled with cost-cutting measures to address declining profitability. Additionally, 11.8% attributed the hiring freeze to the prolonged global economic slowdown and the impact of high exchange rates, while 8.8% pointed to structural challenges in adapting to shifting business environments.

A breakdown by industry revealed that the construction sector had the highest percentage of companies with no hiring plans or undecided recruitment strategies, at 75%. This was followed by the petrochemical sector (73.9%), the metal industry (66.7%), and the food sector (63.7%).

To boost hiring, companies emphasized the need for policy support, with 39.7% calling for deregulation to encourage corporate investment and job creation. Another 19.8% suggested expanding incentives to increase hiring, while 13.5% advocated for greater labor market flexibility to create more diverse employment opportunities.

“As companies continue to adopt austerity measures due to the prolonged economic downturn and rising concerns over global protectionism, the hiring market is facing a severe contraction,” said Lee Sang-ho, head of the Federation of Korean Industries. “There is an urgent need for tax incentives to support corporate hiring, such as extending the sunset clause on the integrated investment tax credit and expanding the scope of the temporary investment tax credit.”


한재희기자 hee@donga.com