S. Korean firms to tighten belts next year: poll

By Nam Kwang-sik
SEOUL, Dec. 21 (Yonhap) -- A majority of S. Korean companies plan to retain their
emergency management systems through next year to cope with volatile external
economic conditions, a survey showed Monday.

In the poll of 482 companies conducted by the Korea Chamber and Commerce Industry
(KCCI), about 78 percent of respondents said they will operate their business in
a state of emergency in 2010.
"Local companies are concerned about next year despite growing hopes for an
economic recovery," the chamber said, "as there are still lingering jitters that
the South Korean won could climb against the U.S. dollar or that oil prices could
rise."
About 52 percent of companies surveyed said that oil and raw material prices may
go up next year, while 16 percent said the won is likely to advance against the
greenback, which would impact exports.
On average the companies predicted the national economy will grow 3.9 percent
next year, lower than the 5 percent growth target set by the government.
Economic institutions have predicted growth in the mid 4 percent range for next
year.
Thirteen percent of respondents said they will recruit more employees next year
than in 2009, with 64 percent saying they will maintain this year's level of
recruitment.