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| President-elect Yoon Suk-yeol delivers a congratulatory speech commemorating Buddha's birthday at a Buddhist temple in central Seoul. Yonhap |
By Anna J. Park
Businesses are calling for the incoming Yoon administration to prioritize regaining corporate growth momentum amid the hostile economic market conditions, including rising interest rates, the soaring exchange rate and global supply chain disruptions, a survey showed, Sunday.
According to a recent survey of 322 corporations by the Korea Chamber of Commerce & Industry (KCCI), the surveyed companies' two most frequent demands for the new government are the recovery of the economy's growth engine and the stabilization of inflation.
Regarding the factor that most negatively influenced their businesses, 77.3 percent of the surveyed companies said it was the rising inflation rate, as inflation hurts corporate profitability and reduces the demand for products or services.
Also, 51.6 percent of the responded companies said they directly experienced losses from the soaring won-dollar exchange rate, as the weakening won increased the costs of imports of raw materials. Only 27.1 percent of conglomerates and 12.2 percent of small and medium-sized companies responded that their exports had increased due to enhanced price competitiveness with the weakening won.
Of the surveyed companies, 52.5 percent also reported direct financial harm from global supply disruptions, as they experienced shortages of raw materials and necessary parts for production.
"Local companies are now facing the multiple tasks of overcoming short-term crisis factors like inflation, exchange rate and supply disruptions, as well as of increasing their growth potential for the mid and long terms," an official from the KCCI said. "The corporations hope the new incoming administration sets up systemic support plans for improving the business environment, while leading efforts to deregulate the market," the official added.
Meanwhile, 72.7 percent of the companies said they're eagerly anticipating the new administration's economic policies, particularly its promised market-focused policy direction and will to ease regulations.
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