Large Korean firms' finances to improve in Q4: poll

By Nam Kwang-sik

SEOUL, Oct. 12 (Yonhap) -- The financial situation of large South Korean companies is forecast to improve in the fourth quarter thanks to the government's support and resilient sales and earnings, a poll showed Monday.

According to the survey on the financial status of 500 companies, the index for
large companies is expected to increase to 123 in the October-December period, up
from 105 in the third quarter.
In contrast, the index for small and medium-sized firms is predicted to come to
103 in the fourth quarter, slightly down from 111 in the third quarter, said the
survey conducted by the Korean Chamber of Commerce and Industry (KCCI).
A reading above 100 means optimists outnumber pessimists.
"Corporate finance has been improving thanks to a rise in sales and earnings, as
well as the government's financial support," the KCCI said.
The big companies' fourth-quarter financial situation is expected to keep
improving, but the government's decreased financial support will cast a pall over
the small and medium-sized companies' financial situation, it added.
Nearly 67 percent of the companies polled said that the biggest reason for an
improvement in their finance is a rise in their sales, while 17.3 percent cited a
pickup in their earnings.
The index of the companies' expectations for raising funds from the stock market
shot up 125 in the fourth quarter from 108 in the third quarter, helped by recent
bullish local stock markets, according to the survey.
ksnam@yna.co.kr