Three of Ten Conglomerates Cut Back on Hiring
kpride, Sept. 17, 2014, 7:21 a.m.
Three out of 10 conglomerates plan to reduce the number of new hires in the second half of this year, according to a survey by the Federation of Korean Industries and Research and Research among the nation's top 300 businesses.
Samsung, Korea's biggest conglomerate, is highly likely to hire the same number of new staff it did last year at around 4,000. A Samsung spokesman said, "Earnings have not been as good as in previous years so there is not much appetite for boosting the number of workers."
LG Group plans to hire around 2,000 workers in the second half, compared to 3,000 in the same period of 2013.
Only 15 percent of the companies surveyed said they plan to hire more workers, while 32 percent said they intend to reduce new hires and 53 percent said to cap new hires at last year's level.
There are three reasons. First, all business sectors are suffering from a slump in sales. In the survey, 36.4 percent of the companies said they worry about worsening market conditions, while 22.7 percent cited internal difficulties.
Second, major business groups have hired an ample number of workers over the past several years due to government pressure. One executive at a major conglomerate said, "We had to hire more workers than we need."
Third, corporations already hired a surplus of workers in the first half of this year. Hyundai Motor has cut its target for new hires during the second half by 300 compared to the same period of 2013 and POSCO by 600.
The two companies said they are hiring around the same number of new staff for the entire year as last year, but they decreased their targets in the second half because of the large number of new hires in the first half.