Seoul: Over 60 percent of large corporations have no plans for hiring new employees or are undecided on hiring in the first half, a poll showed Thursday.
According to Yonhap News Agency, the survey conducted by Research and Research from February 4-13 on the country's top 500 companies by sales revealed that 61.1 percent of firms either had no hiring plans until the end of June or had yet to decide. The study was commissioned by the Federation of Korean Industries (FKI).
Among the companies planning to hire, 28.6 percent indicated they would reduce hiring compared with last year, while only 12.2 percent planned to increase recruitment. By sector, the highest proportion of companies with no hiring plans or undecided hiring status were found in construction, at 75 percent, followed by petrochemicals at 73.9 percent and metals at 66.7 percent.
The primary reason cited for hiring freezes or reduced hiring plans was tightened management strategies amid declining profitability at 51.5 percent. "As the prolonged economic downturn and concerns over protectionist trade policies persist, companies are tightening their management strategies, leading to a hiring freeze," a FKI official said.