(Yonhap)

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Six out of 10 companies in South Korea have confirmed hiring plans for this year, the lowest level since 2021, a survey showed on Thursday.

According to a survey conducted by the Korea Enterprises Federation (KEF) on 500 companies with 100 or more employees, only 60.8 percent of the companies said they plan to hire new employees this year.

The survey showed that 22.4 percent remained uncertain about hiring, and 16.8 percent had no recruitment plans for this year.

The hiring level reached its lowest since 2021, when it stood at 40.3 percent due to the sluggish business environment led by the Covid-19 pandemic.

The hiring level rebounded to 72 percent in 2022 but fell to 69.8 percent in 2023 and 66.8 percent in 2024.

Even if companies proceed with hiring, the actual scale of recruitment could decrease.

Among the companies that announced hiring plans, only 50.7 percent said they would hire at a similar scale to last year.

Only 13.8 percent responded that they would expand hiring, while 26.3 percent said their hiring scale was undecided, and 9.2 percent said they would reduce hiring compared to last year.

The KEF analyzed that corporate sentiment has significantly weakened due to growing internal and external uncertainties, leading companies to take a conservative approach to hiring.

The Corporate Business Sentiment Index, which reflects companies’ economic perception and expectations, has been on a downward trend.

According to the Bank of Korea, CBSI, which stood at 90.1 at the end of last year, has remained below 90 for three consecutive months this year.

“With deepening domestic economic sluggishness and concerns over a U.S.-led tariff war, companies are taking a cautious approach to hiring, making this year’s job market likely to be colder than last year,” said an official from the KEF.