S. Korean firms, consumers most upbeat among OECD nations

SEOUL, July 30 (Yonhap) -- South Korean business and consumer sentiments were the
highest among major economies in June, a report said Thursday, raising hopes for
their increased spending deemed vital for the fast recovery of the local economy.

According to the report by the Organization for Economic Cooperation and
Development (OECD), South Korea's business confidence index (BCI) stood at 101.2
last month, the highest among the member countries of the Paris-based body.
The June figure is also higher than the OECD average of 94.7. South Korea is the
only country whose BCI exceeded the benchmark 100, meaning optimists about future
business conditions outnumber pessimists.
Turkey ranked second with 98.1, followed by the U.S., Poland, Belgium, the Czech
Republic and France with 96.5, 94.6, 94.3, 94.1 and 94, respectively.
Slovakia and the Netherlands were among the lowest-ranking countries with BCIs
below 90, according to the report.
Consumer sentiment also improved faster than major economies, the report showed.
South Korea's consumer confidence index (CCI) was 103.5 in June, higher than the
OECD average of 96.9.
South Korea was among the few countries whose CCI exceeded the benchmark. Denmark
came next with 100.9, followed by Finland and New Zealand, each with 100.1.
Improving business and consumer sentiment here is good news for the South Korean
government, which views corporate and private-sector spending as vital to
accelerating the economic recovery.
The government has been pushing to frontload its fiscal spending and provide
expanded tax benefits to bolster domestic demand, but now is time for investment
and consumption to take over as the main force behind the economic rebound,
Finance Minister Yoon Jeung-yun told a recent meeting.
kokobj@yna.co.kr
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