South Korean businesses are expecting to see their financial conditions improve

South Korean businesses are expecting to see their financial conditions improve slightly in the fourth quarter of the year on the back of increased sales, better profitability and reduced costs, a poll showed Monday.

According to the survey of 500 companies taken by the Korean Chamber of Commerce and Industry (KCCI), an index measuring financial conditions inched up to 105 for the October-December period from 104 the previous quarter.

A reading above 100 means that optimists outnumber pessimists.

More than 86 percent of the respondents cited a rise in sales as the reason for the rosy outlook, while 10 percent said increased earnings will boost their financial health, the poll showed.

“Corporate financial conditions have been improving as the South Korean economy is recovering fast from the global financial downturn,” the chamber said. “The trend is expected to continue for the time being.”

The poll showed the financial status of large companies will improve more sharply than those of small and mid-sized companies for the remainder of 2010.

The index gauging the larger companies’ fourth-quarter financial situation was 107, while that of the small and medium-sized companies’ financial status came to 104. (PNA/Yonhap)

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