S. Korean firms' finances likely to worsen in Q1

By Nam Kwang-sik
SEOUL, Jan. 18 (Yonhap) -- South Korean companies are expecting their finances to
worsen in the first quarter of this year on a fall in sales and other factors, a
poll showed Monday.

According to the survey of the financial status of 500 companies conducted by the
Korean Chamber of Commerce and Industry (KCCI), the corporate finance index for
the companies is predicted to drop to 99 in the January-March period, down from
106 in the fourth quarter of last year.
A reading below 100 means that pessimists outnumber optimists.
About 78 percent of the companies polled cited an expected fall in their sales as
the biggest reason for the gloom about their financial situation, according to
the findings of the survey.
"If a full-scale exit strategy including an interest rate hike is conducted, the
companies may face difficulty in securing financing," the chamber said, adding
that "We couldn't be optimistic about the economy because of volatile foreign
exchange rates and increasing oil and raw material prices."
ksnam@yna.co.kr
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