Twenty out of Korea’s top 30 companies expected the 2020 economy to perform similar to this year or even worse – lower than 2 percent -, boding badly for investment and hiring prospects.

According to a survey conducted by Maeil Business Newspaper on Monday, 20 out of 30 biggest companies including Samsung Electronics, Hyundai Motor, SK Innovation and LG Electronics projected a growth of less than 2 percent in 2020.

Eight firms estimated the growth rate at 1.5 percent, eight at 1 percent and four at less than 1 percent, while 10 companies predicted the economy would grow by 2 percent or above.

This is much gloomier than the government’s expectation for the country’s economy next year.

Hong Nam-ki, deputy prime minister for economy, on Monday vowed to achieve 2.2 percent to 2.3 percent growth next year.

The economy this year is largely expected to grow 2.0 percent at best or lower to perform its worst in a decade.

The biggest threat to the Korean businesses for 2020 would be the global protectionist movement and unfavorable trade conditions, the companies said, followed by China’s economic slowdown and rising prices of oil and raw materials. They also blamed anti-business sentiment at home and lack of interaction, revised local bills that have weakened their management rights, the 52-hour workweek rule soured diplomatic relations with China and Japan and government’s regulations for the sluggish economic growth.

Facing mounting pressures from home and abroad, most businesses are expected to cut down on new hires and investment next year, according to an official from the business circle. Even the firms with better financial circumstances would be afraid of increasing investment and employment due to the uncertainties, the official added.

Most of the firms surveyed estimated the U.S. dollar exchange rate at 1,150 won i 2020 and interest rate level at around current record-low level of 1.25 percent or lower.

By Special Report Team (Kang Gye-man, Won Ho-sup, Chun Gyung-woon, Lee Jong-hyuk, Song Gwang-sup, Park Yun-gu) and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]