South Korean conglomerates expect export conditions to worsen in 2012 mainly due to eurozone debt woes and a U.S. economic slowdown, a poll showed Thursday.
The Federation of Korean Industries survey showed that of 22 major businesses polled, 15, or 68.2 percent, expected next year’s export environment to be less favorable than in 2011.
The data also showed that 63.6 percent of the conglomerates, including Samsung, Hyundai Motor Co., LG and SK, are bracing for financing-related difficulties in the new year.
“Of the companies checked, 81 percent think outbound shipments to Europe will be hurt, while 43 percent think overall export conditions to the United States will deteriorate,” the FKI said.
The lobbying group of large businesses added that the conglomerates expected continued sluggish growth in advanced industrialized economies, which will exert a negative influence on South Korea’s export drive.
South Korea became the ninth country to surpass an annual trade volume of US$1 trillion this year, with export growth in the first 11 months of this year reaching 20.5 percent.
For 2012, local think tanks such as the Korea Development Institute and the Korea Institute of Finance and Samsung Economic Research Institute predict export growth to fall to the 7-10 percent range.
The FKI survey, however, showed that despite hard times, 82 percent of the large companies plan to maintain or expand investments in the new year.
Such moves could bolster the domestic economy and lay a foundation for future growth.
Asked about South Korea’s 2012 economic growth, 86 percent of the business groups expected 3-4 percent gains could be reached, with 59 percent expecting a dip in domestic consumption compared to 2011.
About half of the businesses said the construction sector may experience modest contraction, although 46 percent predicted no change from this year.
The FKI, meanwhile, said 95 percent of the conglomerates polled believed the value of the Korean won will rise moderately against the U.S. dollar in 2012, with 55 percent saying international crude oil prices will remain unchanged from this year.
(Yonhap News)
