S. Korean retailers downbeat over Q2 biz outlook: poll

By Nam Kwang-sik
SEOUL, March 24 (Yonhap) -- A majority of South Korean retailers are pessimistic
about business conditions in the second quarter due to weak demand stemming from
the deepening global recession, a poll showed Tuesday.
The Korea Chamber of Commerce and Industry (KCCI) said its retail business index
rose slightly to 75 for the April-June period from 73 for the first quarter.
A reading below 100 means that pessimists outnumber optimists. The index has been
below the benchmark 100 for five consecutive quarters since the first quarter of
last year.
"Consumer sentiment remains low due to the deepening global economic downturn.
The government and companies should execute their plans to boost domestic demand
as soon as possible," the chamber said.
According to the survey, 43 percent of retailers polled predicted that a decline
in consumption will be the biggest factor for lower earnings in the second
quarter, while 17 percent said higher product prices pose the biggest challenge.
In contrast to the gloomy forecast, home shopping companies expected business to
fare well in the second quarter thanks to a marketing strategy that lures
consumers by offering free gifts. The index for home shopping companies has been
above the benchmark 100 since the July-September period.
South Korea's consumer survey index (CSI) -- a gauge of consumers' overall sense
of their economic outlook, living conditions and future spending -- by the Bank
of Korea (BOK), rose to 85 in February, compared to 84 the previous month. A CSI
reading below 100 also means that pessimists outnumber optimists.
ksnam@yna.co.kr
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