Korean exporters’ Q3 outlook remains cold

A majority of South Korean companies see business conditions for their exports will continue to stagnate in the third quarter of the year mainly due to global economic uncertainties triggered by the European debt crisis, a poll showed Friday.

The export business survey index came in at 87.5 for the July-September period, the lowest level in 13 quarters since it hit 66.1 in the second quarter of 2009, according to the poll of 964 companies by the Korea International Trade Association.

The latest number represents the fourth quarter in a row that the EBSI has fallen below the 100 mark, meaning that pessimists outnumber optimists among businesses checked. In the second quarter of the year, the index slightly rose to 94.9 from 89 but failed to reach the 100 mark.

“Local exporters are concerned that the current world economic uncertainties will continue for a while due to lingering Greek and Spanish financial problems and China’s economic slowdown,” KITA said.

Earlier, a state-run think tank said that South Korea’s exports will grow only about 3 percent this year to $572 billion due to a slowdown of the global economy. In 2011, the country’s exports surged 19.3 percent from the year before.

The KITA survey also showed that shipbuilders and petrochemical exporters have the gloomiest outlooks for the next quarter with their index numbers reaching 57.1 and 66.7, respectively, as many of their European buyers are forecast to cut their orders in the midst of the region’s financial woes.

Of the companies surveyed, 22.7 percent said they expect difficulties to arise from contracted demand in export markets in Europe and China.

The poll, in addition, showed 19.6 percent of the businesses checked saying a rise in raw material prices will likely pose the biggest problem for them in the coming months. (Yonhap News)