The Korea Herald

피터빈트

Biz outlook far worse than post-Sewol level: surveys

By KH디지털2

Published : June 29, 2015 - 11:04

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A majority of companies in South Korea predicted business conditions to get worse in July as they are concerned over the fallout from Middle East Respiratory Syndrome and toughening outlooks for exports, a poll showed Monday.
  

According to the poll conducted on the country's top 600 companies by the Federation of Korean Industries, the business survey index for July stood at 84.3.
  

A reading below 100 means pessimists outnumber optimists about business conditions down the road. The latest figure was even lower than 91.6 in August when the country was reeling from the Sewol sinking, one of the nation's largest maritime disasters.
  

The sub-index for domestic demand stood at 84.1, with the corresponding figures for exports, investment and financing staying at 92.9, 95.6 and 95.2, respectively.
  

Mostly cited downside risk factors were growing external uncertainties, slumping exports and frozen economic sentiment caused by the MERS outbreak.
  

"The latest survey showed about a 10 percent increase in pessimistic views compared with the previous month," an FKI official said. "Coupled with weak exports, the fallout from MERS seems to have played a role."
  

MERS has claimed lives of 32 people since its first case was confirmed on May 20.
  

Concerns over a wide spread of the acute respiratory disease are negatively affecting the economy here by freezing consumption. Airline and tourism industries are among the hardest-hit as travelers are canceling their trips to Korea.
  

Export outlooks also remain bleak on worries about unfavorable currency situations and slowing demand in global market.
  

In a separate survey on 755 exporters by the Korea International Trade Association, the Export Business Survey Index came to 98.4 for the July-September period, down from 112 in the previous quarter.
  

The latest index is the lowest since the third quarter of last year when it fell to 93.9. (Yonhap)