SEOUL: Kang Dong-wan, the head of an electronic goods supplier for South Korea’s biggest global brands, says it feels like Asia’s fourth-largest economy is in a recession as business conditions have deteriorated further after a tough 2018.
A trade war between China and the United States has slowed sales abroad, domestic demand remains sluggish, and operating costs have risen along with a cap on weekly working hours and a 29% increase in minimum wages in the past two years.For Kang’s company, Alps Electric Korea Co Ltd, which supplies components to big firms such as Hyundai Motor Co, Samsung Electronics Co Ltd and LG Electronics Inc, this meant a 40% drop in sales year-on-year to 600 billion won (US$515.95mil) in 2018.