71.6% Report Worsening Business Sentiment for Chuseok
49.6% Expect Conditions to Worsen Further
The Daegu Chamber of Commerce and Industry (Chairperson Park Yunkyung) announced on the 21st that it conducted a survey titled "2025 Chuseok Business Outlook" of 443 local companies to assess industry trends, including business sentiment, holiday closure plans, and bonus payments ahead of the Chuseok holiday.
According to the survey results, 71.6% of responding companies said that business sentiment had worsened compared to last year's Chuseok. Meanwhile, 25.2% said it was similar to last year, and only 3.2% reported an improvement.
The main reason cited for the deterioration in business sentiment was "sluggish domestic demand" (52.9%). Other major factors included "decline in exports" (21.9%), "rising prices of raw and subsidiary materials" (12.9%), and "high inflation" (12.6%).
Financial conditions have also worsened, with 62.2% of respondents stating that their financial situation had deteriorated compared to last year's Chuseok. Meanwhile, 33.1% said it was similar to last year, and only 4.7% reported an improvement.
Regarding the holiday on October 10, 70.5% of responding companies said they would operate as usual, while 27.0% planned to close, and 2.5% were undecided.
Among companies planning to close, 69.3% said employees would use collective annual leave, 24.0% would provide company-paid leave, and 6.7% cited other methods.
The most common reason for closing was "decreased order volume" (53.3%), followed by "employee welfare" (34.7%) and "facility inspection and maintenance" (5.3%).
Regarding Chuseok bonuses, 53.6% of companies said they had no plans to pay a bonus, which was higher than the 46.4% that did. Among companies planning to pay a bonus, 84.5% said the amount would be the same as last year, 10.9% planned to reduce the amount, and 4.6% planned to increase it.
Additionally, three out of four companies (75.2%) said they planned to give holiday gifts. The most common gift items were "processed foods (such as ham and tuna)" at 45.9%, followed by "household goods" at 43.5%, and "fruits" at 12.0%. On the other hand, only 11.5% of companies said they would use "Daeguropay," the local gift certificate for the Daegu region, when purchasing holiday gifts.
As for the business outlook after Chuseok, 49.6% of respondents said they expected conditions to worsen. Meanwhile, 42.1% anticipated conditions similar to last year, and only 8.3% expected improvement.
Lee Sangkil, Executive Vice Chairman of the Daegu Chamber of Commerce and Industry, stated, "It appears that regional business sentiment has deteriorated due to factors such as U.S. tariff policies, high inflation, and a strong dollar," adding, "Policy support to stimulate domestic demand and financial support to help companies secure liquidity are needed."
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