Nearly three-fourths of South Korean manufacturers are expecting a looming U.S. rate hike to hamper the recovery in Asia's fourth-largest economy, but most don't have any viable measures to tackle it, a poll showed Monday.
  

According to the survey on 300 local manufacturers conducted by the Korea Chamber of Commerce and Industry, the respondents said the U.S. rate hikes could spark massive capital outflows from the country, increase financial volatility and worsen consumer sentiment.
  

The poll showed that some 75 percent said U.S. rate hikes would be "burdensome" for the South Korean economy, while the rest responded that a rise in borrowing costs in the U.S. would have "little impact" on the local economy.
  

Some 80 percent said they had no immediate plans to prepare for the major economic event, while some 20 percent said they have secured cashable assets, beefed up market monitoring and taken other measures in preparation for the rate hike in the world's largest economy.
  

The U.S. Federal Reserve is widely expected to raise borrowing costs before the end of the year, marking the first rate hike in seven years, as the world's largest economy is seen on a firm recovery track.
  

"The U.S. Fed's expected rate hike could have a far-reaching impact on the South Korean economy and its economic agents," said an official at the KCCI. "That means that local companies and the government are required to brace for the event with detailed preparations."
  

Meanwhile, the surveyed firms said that the pace of U.S. rate hikes and an additional rate reduction by the Bank of Korea were their major concerns for their second-half business strategies.
  

The BOK has trimmed the base rate by a combined 0.75 percentage point to a record low of 1.75 percent in less than one year and is widely expected to further slash the rate in the coming months. (Yonhap)