S. Korean firms predict eased credit woes in H1 next year: survey

SEOUL, April 16 (Yonhap) -- Nearly half of South Korea's major firms predict the
current credit squeeze will begin to abate in the first half of next year,
indicating money markets may remain frozen for now, a survey showed Thursday.
Money-market rates in South Korea have surged since the collapse of U.S.
investment giant Lehman Brothers Holdings Inc. in September last year, making it
difficult for firms to raise working capital.
The Federation of Korean Industries said 48.3 percent of the 600 companies it
surveyed predicted credit markets will begin to revive in the first-half of next
year, compared with 19.9 percent who expected an earlier turnaround.
It also found 23.5 percent of those surveyed foresaw the credit squeeze easing in
the second-half of next year.
"The survey showed it's too early to say that financial markets are improving,"
the federation said in a statement.
Last week, Bank of Korea Governor Lee Seong-tae said the pace of the economic
slowdown "moderated significantly," leaving the benchmark interest rate unchanged
for a second month.
The central bank expects the South Korean economy to shrink 2.4 percent this
year, which would mark the first annual contraction since 1998.
Earlier in the day, the Ministry of Knowledge Economy cut this year's export
target to US$365 billion, down 13 percent from last year.
(END)