Crisis Management for a Conflict with North Korea
This is the best North Korea conflict crisis support available today. Predict, plan, build, prepare, train, and test in the right way.
Korean companies cut back for 2026 due to global slowdown
Joongang Ilbo | English | News | Dec. 3, 2025 | UndeterminedOperating Results
Korean companies are shifting their 2026 business strategies from expansion to maintenance and cost-cutting amid a global economic slowdown and increasing regulatory pressures. According to a Korea Enterprises Federation (KEF) survey of 229 companies, over 70 percent plan either to maintain current operations or tighten them, with only 29.1 percent aiming to expand. Workforce optimization, including headcount reductions, has become the primary cost-cutting measure for the first time since 2017.
Several sectors, including petrochemicals, steel, home appliances, telecommunications, and retail, have initiated restructuring efforts this year, offering voluntary retirement to improve profitability. Hiring plans reflect the cautious mood, with over half of surveyed companies maintaining current hiring levels, while 41 percent of large firms plan to reduce recruitment. Data from sustainability reports also show a significant decline in new hires among major Korean firms over the past two years.
Investment plans reveal a preference for maintaining or reducing domestic investments, especially among larger firms, while overseas investment, particularly in Southeast Asia and the United States, is expected to increase. President Lee Jae Myung has expressed concern about the imbalance favoring foreign over domestic investment and urged a more balanced approach. Rising domestic costs, new labor regulations, and proposed amendments to the Commercial Act are cited as factors pushing companies toward defensive strategies. Experts emphasize the need for minimizing regulatory burdens and implementing labor market reforms to encourage investment and hiring within Korea.