44.2% of Daegu Companies Have No Plans for New Hires in First Half of Next Year... 32.5% Offer Starting Salary Below 30 Million Won

Daegu Chamber of Commerce and Industry Hiring Survey
36.3% of Companies Plan to Hire

The Daegu Chamber of Commerce and Industry (Chairperson Park Yoonkyung) conducted a survey on new hiring plans for the first half of next year among companies in the Daegu region.

According to the survey results released on November 5, 36.3% of all responding companies stated that they have plans for new hires. Among these companies, two out of three responded that they plan to hire at a similar scale to the first half of this year, indicating that local companies are maintaining a hiring policy focused on retaining current staff amid ongoing economic uncertainty.

Daegu Chamber of Commerce and Industry

Regarding hiring plans by job category (multiple responses allowed), 'field positions' accounted for the highest proportion at 71.4%, followed by 'administrative positions' (32.1%), 'research and development positions' (16.7%), and 'sales and marketing positions' (15.5%).

Despite AI technology becoming a core technology across industries, only 15.5% of companies reported plans to hire AI specialists. Meanwhile, 69.0% of responding companies stated that they have no such hiring plans, highlighting the urgent need to foster and support the recruitment of AI professionals.

On the other hand, among companies that responded they have no hiring plans (44.2% of the total), the most frequently cited reason (multiple responses allowed, up to two) was 'concerns over economic uncertainty and decreased sales' (83.3%). This was followed by 'burden of rising labor costs' (49.0%), 'lack of plans to invest in new business ventures' (28.4%), and 'difficulty in securing skilled workers' (8.8%).

As for the qualities companies prefer in new hires (multiple responses allowed, up to two), the most common response was 'talent with expertise and practical skills' (57.1%), followed by 'employees with a high level of company loyalty and diligence' (49.8%), and 'those with excellent communication and collaboration skills' (40.7%).

Regarding the starting annual salary for new employees, nearly half of the companies responded 'between 30 million and less than 40 million won' (44.2%), followed by 'less than 30 million won' (32.5%), 'between 40 million and less than 50 million won' (8.2%), and '50 million won or more' (3.0%).

When asked about preference between fresh graduates and experienced workers, three out of four companies indicated a preference for experienced hires.

The main difficulties experienced during the hiring process (multiple responses allowed, up to two) were most commonly 'burden of labor costs' (51.5%), followed by 'lack of technical skills or proficiency among job seekers' (42.9%), and 'shortage of candidates suitable for the position' (42.4%).

Regarding the support policies they desire from the government and local authorities (multiple responses allowed, up to two), the highest proportion of responses was for 'expanding subsidies for labor costs' (62.8%), followed by 'policies to encourage young people to settle in the region' (43.3%), and 'support for improving the image of small and medium-sized enterprises' (39.4%).

As for employees reaching retirement age, the most common response was 'rehiring necessary personnel as contract or fixed-term employees' at 69.2%. Additionally, 14.3% responded that 'employment is generally terminated after retirement age,' and another 14.3% said they are 'currently considering introducing such a system.'

Among recent changes in labor policy, the system cited as having the greatest impact on hiring and workforce management (multiple responses allowed, up to two) was the '4.5-day workweek' (48.1%), followed by 'minimum wage' (34.2%), 'ordinary wage' (30.7%), and 'extension of retirement age' (29.0%).

Lee Sanggil, Executive Vice President of the Daegu Chamber of Commerce and Industry, stated, "Due to economic uncertainty and rising labor costs, local companies are prioritizing workforce retention over expanding employment," adding, "We need to create a virtuous cycle for local employment by expanding support for labor costs, improving conditions for young people to settle in the region, and enhancing perceptions of small and medium-sized enterprises."