Most Chamber Heads Say Restructuring ‘Inevitable’

The majority 80 percent of 71 regional chambers of commerce say restructuring is inevitable in certain sectors and 42 percent say property sales is a more favorable method of restructuring than layoffs.

The Dong-A Ilbo and the Korea Chamber of Commerce and Industry conducted a joint survey from Nov. 27 to Friday on economic and corporate restructuring trends.

Fifty-six chairmen of 71 chamber chairmen (78.9 percent) nationwide said restructuring is needed in certain businesses. Eleven or 15.5 percent said restructuring is “urgently needed” and 45 or 63.4 percent said “needed.” Only one or 1.4 percent said restructuring is not needed and 19.7 percent responded “so so.”

Construction (62.1 percent) was cited as one of the most urgent areas for restructuring, followed by the non-banking financial sector (18.2 percent) and shipbuilding (10.6 percent).

Most chairmen of the 71 chambers favored property and asset-based restructuring rather than reducing labor.

On the proper method to handle the economic crisis, 42.3 percent suggested asset sales of real estate or insolvent businesses while 22.5 percent said layoffs of redundant staff and cost cutting.

Meanwhile, 12.7 percent said this financial crisis should serve as an opportunity to make more aggressive investment.

On the nation’s economic outlook for next year, 59.2 percent predicted “bad” prospects while 38 percent said “very bad.”

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