Full-fledged economic recovery expected after H2 2010: biz poll

SEOUL, Oct. 29 (Yonhap) -- South Korean exporters expect a full-fledged economic recovery to occur during or after the second half of 2010, a poll conducted by a state-run export insurer said Thursday.

The nationwide survey conducted on 1,008 export businesses showed slightly more
than 68 percent of all respondents predicting a recovery would take place after
July of next year, the Korea Export Insurance Corp. (KEIC) said.
Of the total, 46.8 percent said noticeable improvements will be made in the
second half of 2010, with 21.6 percent predicting a recovery in 2011. Only 28.2
percent of the 63 conglomerates and 945 smaller-sized companies polled in
mid-September said a full-fledged recovery will occur before the first half of
next year.
"Judging by the poll, many companies have yet to directly feel improvements
despite recent signs of recovery," a KEIC official said.
The survey also showed that 41 percent of respondents were seeking greater
assistance from the government, with 39 percent saying that while the country
should prepare a so-called exit strategy to reel in excess liquidity, such
measures should not be implemented just yet.
The latest survey, meanwhile, showed that companies believe the appropriate
exchange rate to be 1,228 won to the U.S. dollar, with the break-even point being
1,158 won to the greenback.
In the first 27 days of this month, the Korean won traded at an average 1,172 won
to the dollar.
About half of the respondents forecast the Korean currency will probably move
between 1,100-1,200 won against the dollar for the remainder of the year, the
survey said.
yonngong@yna.co.kr
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