SEOUL - Approximately half of the top 500 companies in South Korea are yet to decide on their investment plans for 2024, as revealed by a recent survey. This indecision reflects the economic uncertainties faced by these companies. The survey, conducted by Mono Research between November 16 and 24, found that 49.7% of the leading firms in terms of sales are undecided about their investment strategies for the coming year, with an additional 5.3% indicating no investment plans for 2024. This survey was commissioned by the Federation of Korean Industries, a prominent business lobby in South Korea.
According to Yonhap News Agency, among those who have finalized their investment plans, 61% expect to maintain their investment levels similar to 2023, while 28.8% plan to increase their spending in 2024. The companies hesitating to commit to investments cite several factors, including economic uncertainties, rising raw material costs, and financing challenges. High interest rates were identified as the primary deterrent for 2024 investments, followed by inflationary pressures, the depreciation of the local currency, and a global economic slowdown.