6 conglomerates pessimistic about investment targets

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6 conglomerates pessimistic about investment targets

Six out of 30 top conglomerates in the country said they will fail to meet their investment targets this year largely due to the worsening economic conditions as well as difficulty in securing financing, according to a survey by the Federation of Korean Industries.

The business lobby group said a recent survey showed that only one conglomerate said it may exceed its initial investment plan announced earlier this year. The remaining 23 conglomerates said they may meet investment targets by the end of the year.

Furthermore, four conglomerates said they may have to shrink the size of their recruiting. Only three said they are likely expand their recruitment more than originally planned.

Nearly 44 percent answered that the global economic recovery was the biggest factor influencing their decisions on investment in the second half, while 40.6 percent said the domestic economy was a major factor.

On other issues, legalization of economic democratization was the biggest influence on conglomerates’ investment decisions, followed by various government agencies’ investigations.

The survey also showed that 33.3 percent said worsening profitability was the biggest concern at the moment followed by stagnant domestic sales (20 percent) and insufficient capital (10 percent).

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