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8 in 10 businesses expect Trump to hurt Korean economy, KEF survey finds

Published: 01 Dec. 2024, 17:06

Republican presidential nominee and former U.S. President Donald Trump looks on during a press conference at Trump Tower in New York City, U.S., Sept. 6, 2024. [REUTERS/YONHAP]

More than eight out of 10 Korean companies expect U.S. President-elect Donald Trump's return to the White House will have a negative impact on the national economy, a survey showed Sunday.

In the annual survey on 239 companies with at least 30 employees, 82 percent said the Korean economy will be negatively affected by the protectionist policy of the incoming second Trump administration as it has a high dependence on exports, according to the Korea Enterprises Federation (KEF).

Only 7.5 percent answered the Korean economy will benefit from his reelection thanks to his China policy, expected to be aimed at curbing the growth of the world's second-largest economy.

Amid uncertainties surrounding the economy, 49.7 percent of the companies said they plan to go into belt-tightening mode next year, while 28 percent and 22.3 percent plan to maintain the status quo and expand their business, respectively.

The KEF said the rate of companies going on austerity management was the highest since 2019.

As measures for austerity, cost reduction was cited the most at 66.7 percent, followed by the efficient use of manpower at 52.6 percent and a decrease in new investments at 25.6 percent.

The local companies forecast the Korean economy will grow 1.9 percent next year and start recovering after 2026, according to the KEF.

Yonhap