Samil PwC "Korean CEOs' Growth Expectations Rise... 58% Globally Optimistic About Economy This Year"

PwC Releases 'Global CEO Survey'
4,701 CEOs from 109 Countries Share Insights
Korean CEOs Cite "Macroeconomic Volatility and Geopolitical Risks" as Top Threats

Forty-nine percent of South Korea's chief executive officers (CEOs) forecast growth in the global economy this year, up from 25% last year. Expectations for growth in the Korean economy (38%) also rose compared to last year's 25%. Globally, 58% of CEOs viewed the world economy optimistically for this year.

Global Economic Growth Outlook. Provided by Samil PwC

On the 21st, Samil PwC released the “28th Annual Global CEO Survey” report containing this analysis. The report was based on the Global CEO Survey published by PwC Global alongside the opening of the World Economic Forum (WEF, Davos Forum). It includes survey results from 4,701 CEOs across 109 countries conducted between October and November last year. The theme for this year was “Innovation at the Forefront of the Future,” focusing on artificial intelligence (AI) and climate change.

According to the report, three out of five global CEOs (58%) expect the world economy to grow over the next year. When asked about the biggest threats this year, macroeconomic volatility (29%) and inflation (27%) were most frequently cited. By region, the Middle East (41%) and Central and Eastern Europe (34%) identified geopolitical conflicts as the greatest risk, while Western Europe pointed to macroeconomic volatility (29%). In South Korea, 40% of respondents named macroeconomic volatility and geopolitical conflicts as the biggest threats. The report noted, “Due to South Korea’s high external economic dependence, sensitivity to geopolitical conflicts (40%) was higher than the global average (22%).”

Conversely, the proportion of Korean CEOs who believed the global economy would slow down this year (40%) was higher than that of global CEOs (2%). This suggests that Korean business leaders are more sensitive to internal and external threats such as macroeconomic volatility and geopolitical risks.

Additionally, 57% of Korean CEOs reported entering new businesses over the past five years to accelerate innovation, higher than the global average of 38%. Regarding expected tenure, 36% of Korean CEOs answered “don’t know,” compared to the global average of 7%. The report pointed out that such uncertainty could weaken innovation momentum.

This year’s report also covered the initial outcomes of generative AI, which has been increasingly adopted by companies in recent years. Fifty-six percent of global CEOs responded that generative AI has improved employee work efficiency. About one-third reported increases in sales (32%) and profitability (34%). Approximately half of respondents (49%) expected revenue growth. In contrast, only 6% of Korean CEOs said that generative AI adoption had actually improved profitability, significantly below last year’s expectation of 42%. Expectations for profitability this year also fell to 37% from the previous year.

Among global CEOs, 42% expected to increase their workforce by more than 5% over the next year, more than double the 17% who anticipated reducing staff. The report analyzed that “there is no evidence to suggest that generative AI has broadly reduced employment opportunities.” Regarding climate investments, 33% of global CEOs and 18% of Korean CEOs reported increased sales through eco-friendly investments over the past five years. The main obstacles to green investments were regulatory changes for global CEOs and difficulties in financing for Korean CEOs.

Expectations for Profitability Improvement Due to Generative AI and Actual Performance. Provided by Samil PwC

Yoon Hoon-soo, CEO of Samil PwC, said, “Although the Korean economy faced challenging circumstances due to the turbulent domestic situation at the end of last year, it is noteworthy that more than half of Korean CEOs are pursuing innovation by entering new businesses.” He added, “We hope this report, reflecting the views of CEOs worldwide, will help set the direction for change and lay the foundation for innovation.” Detailed information about the report is available on the Samil PwC website.