56.2% of Daegu Companies Unable to Pay Lunar New Year Bonuses... 80.1% Feel Economic Conditions Worsened Compared to Last Year

According to the results of the '2025 Regional Business Lunar New Year Trends' survey conducted by the Daegu Chamber of Commerce and Industry targeting companies in the Daegu area, the perceived business conditions and financial situation have worsened compared to last year, as revealed on the 13th.

In particular, many companies reported that their perceived business conditions have deteriorated compared to last Lunar New Year. Among the 260 companies in the Daegu area that responded to the survey, 80.1% answered that conditions had worsened compared to last year (somewhat worsened 48.1%, significantly worsened 32.0%), while only 1.9% said conditions had improved.

Daegu Chamber of Commerce and Industry

By industry, the construction sector had the highest rate of perceived business condition deterioration (90.5%), followed by distribution and service industries (82.8%) and manufacturing (77.5%).

The main reason cited for the worsening business conditions was 'domestic demand slump' (38.0%), with 'high inflation' (14.9%), 'high exchange rates' (14.2%), and 'rising prices of raw and subsidiary materials' (10.1%) also identified as major factors.

The financial situation also worsened, with 65.0% of respondents reporting deterioration (somewhat worsened 41.9%, significantly worsened 23.1%). Those who said the situation was similar to last year accounted for 30.0%, and 5.0% reported some improvement. By industry, construction (83.3%) reported the greatest difficulties, followed by distribution and service industries (62.0%) and manufacturing (61.3%).

Regarding the Lunar New Year holiday closure (survey conducted before the temporary holiday was designated on the 27th), 52.7% of responding companies planned to close for three days from the 28th to the 30th. Among companies planning to close for four days or more, many cited 'employee welfare' (50.4%) and 'decrease in order volume' (41.6%) as reasons.

Of the 260 companies surveyed, 114 (43.8%) stated they plan to pay bonuses this year, 78 companies (30%) plan to give only gifts, and 68 companies (26.2%) have no plans to provide either bonuses or gifts.

As for holiday gift items, 'processed foods (ham, tuna, etc.)' were the most preferred at 36.2%, followed by 'daily necessities' (30.5%), 'fruits' (10.3%), and 'department store gift certificates' (9.4%).

Lee Sang-gil, Executive Vice President of Daegu Chamber of Commerce and Industry, emphasized, "Policy support is urgently needed to respond to factors worsening the economy such as domestic demand slump caused by ongoing economic uncertainty since the end of last year and rising raw material prices due to exchange rate surges," adding, "Financial support and measures to revitalize domestic demand are necessary to alleviate the difficulties faced by regional companies."