80% of South Korean Corporates to Maintain Investment levels in H2

Nearly 80% of South Korea’s leading firms plan to hold investment levels steady in the second half of 2025, matching their first-half strategies amid continued economic uncertainty, according to a Federation of Korean Industries (FKI) survey.

Of the 120 major companies surveyed, 78.4% said they would maintain domestic investment, 13.3% planned cuts, and 8.3% expected to increase spending. Businesses cited weak exports, fragile domestic consumption, and policy unpredictability, particularly under a possible second Trump administration, as reasons for caution.

However, optimism tied to the incoming Lee Jae Myung government and hopes for fiscal stimulus are providing some confidence. Key risks identified include slowing demand from the US and China, supply chain disruptions, and elevated financing and raw material costs.