S. Korean manufacturing sentiment hits record low

SEOUL, Oct. 31 (Yonhap) -- South Korean manufacturing sentiment sank to a record low for the fourth quarter due to concerns over an economic recession amid global financial turmoil, a government poll showed Friday.

The business survey index (BSI) for manufacturing companies tumbled to 78 for the
October-December period from 98 three months earlier, according to the survey
taken by the Ministry of Knowledge Economy and the Korea Institute for Industrial
Economics and Trade.
The fourth-quarter figure is the lowest since the government started conducting
the survey in the second quarter of 2001. A reading below 100 means that
pessimists outnumber optimists.
"The findings reflect recent market instability caused by the global financial
crisis and its impact on the local economy," a ministry official said.
South Korea, Asia's fourth-largest economy, has been roiled by the global
financial crisis. The local currency has fallen nearly 30 percent against the
dollar this year, prompting the central bank to conclude a US$30 billion swap
deal with its U.S. counterpart.
Analysts say the impact of global financial instability may spill over into the
real sector of the South Korean economy, which is already struggling to cope with
stubbornly weak domestic demand and slackening exports.
yonngong@yna.co.kr
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