SEOUL, February 08 (AJP) - A new survey shows that more than six out of ten South Korean businesses plan to observe a five-day holiday for the upcoming Lunar New Year. The findings also indicate that the number of companies reporting a decline in economic conditions has dropped significantly compared to last year, suggesting a recovery in business confidence.
The Korea Enterprises Federation (KEF) released the results of its Lunar New Year Holiday Survey on February 8, after polling 447 companies nationwide with five or more employees. The data shows that 64.8 percent of these firms will close for five days. This year's holiday period stretches from the weekend of February 14 and 15 through the official public holidays of February 16 to 18.
Among the respondents, 26.1 percent plan to offer four days or fewer, while 9.2 percent will provide six days or more. For the companies offering these extended breaks, 59.4 percent stated they were following mandatory requirements set by collective bargaining agreements or internal employment rules. Larger firms with 300 or more employees were notably more likely to offer longer breaks, with 22.7 percent providing at least six days off, compared to just 7.6 percent of smaller businesses.
Regarding holiday pay, 58.7 percent of companies said they will provide a Lunar New Year bonus, a slight decrease from 61.5 percent last year. Among those paying out, 66.3 percent will issue them as regular bonuses, 28.6 percent as separate discretionary bonuses, and 5.2 percent will provide both. For the businesses opting for discretionary bonuses, 85.7 percent intend to keep the amounts consistent with last year's levels.
The survey highlights a shift in how businesses view the current economic climate. While 55.6 percent of respondents described the situation as "similar to the previous year," the proportion of companies stating the economy had "worsened" fell to 39.5 percent. This is a sharp decline from the 60.5 percent who reported a worsening economy during the same period last year.
The KEF also gathered projections for the current fiscal year. Roughly 50.9 percent of the surveyed firms expect their operating profits to increase compared to last year, while 36.0 percent anticipate a decrease.
The data reflects the prevailing mood in the field as companies prepare for one of South Korea's most significant traditional holidays. Local businesses appear to be leaning toward a more stable outlook even as they manage holiday bonus distributions.
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