Over Half of South Korean Firms Brace for Tough 2026, FKI Poll Shows
A new FKI poll reveals 52% of South Korea's top companies expect a challenging 2026, citing a weak won and slow domestic demand. We analyze the risks and potential impact on the Korean economy and global investors.
More than half of South Korea’s largest companies are bracing for a challenging business environment in 2026, signaling potential headwinds for Asia's fourth-largest economy amid sluggish domestic demand and a volatile currency.
According to a poll of the nation's top 1,000 businesses by revenue, 52% of respondents expect conditions to be challenging next year. The survey, released Monday by the Federation of Korean Industries (FKI), found that only 44.7% anticipated a favorable environment.
The pessimism is rooted in both domestic and international pressures. Internally, the most concerning risk cited by companies is 'slowing domestic demand' (32.2%), followed by 'lingering inflation' (21.6%). This suggests that high prices continue to dampen consumer spending, directly impacting corporate bottom lines.
Externally, the picture isn't much brighter. 'Volatility in the foreign exchange market' is the top concern for 26.7% of firms, as a weak Korean won drives up the cost of imported raw materials. Close behind is the threat of 'global protectionism and trade barriers' (24.9%), a major worry for the export-reliant nation.
To navigate these issues, corporate leaders are looking to the government for support. Their top requests include 'easing business regulations' (18.9%), 'revitalizing domestic consumption' (17.8%), and 'addressing uncertainties in global trade' (16.9%).
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