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Majority of S. Korean firms pessimistic about economy

(Xinhua)
Updated: 2008-11-14 10:38

SEOUL -- Majority of businesses from S. Korea 's major industries showed pessimistic outlook about the country's economy growth next year, Korea Herald reported on Friday.

According to a survey by the Korea Chamber of Commerce and Industry (KCCI), out of 531 companies 44.1 responded that the economic growth will be not even reach 3 percent, while 23.7 percent expect a growth between 3 and 3.5 percent.

When asked about the current economic situation, 77.5 percent diagnosed it as "really bad," while 21.9 percent cited "slightly bad," the survey showed.

The survey found that 40.9 percent of the polled companies project the economy to recover in the latter half of 2009. Those who said economy will turnaround in the first half of 2010 and post-2011 accounted for 22.3 percent and 17.7 percent, respectively, while 9.2 percent said it will get better in the first half of 2009.

The survey also showed that 81.5 percent are facing negative effects from the latest global financial crisis with 22.1 percent saying they have face a huge losses.

In terms of industries, 88.2 percent of the shipbuilding, machinery and parts industry said they are facing losses, followed by 84.2 percent of non-metal, 84.1 percent of automobile and auto parts and 83.7 percent of textile, apparel and shoe industries.

Regarding the type of losses, 29.2 percent cited a loss from the exchange-rate difference, 24.1 percent a drop in domestic sales, 16.1 percent said weakening profits, and 13.1 percent cited securing foreign currency.