Half of South Korean manufacturers think that the lingering European financial crisis will hurt their financial health next year in earnest, making it more difficult for them to secure working capital, a survey said Sunday.
According to the survey of 300 manufacturing companies by the Korea Chamber of Commerce and Industry, 50 percent said that their financial conditions are expected to be affected by the European debt woes, while only 22 percent responded that they have felt the effect of the financial crunch this year.
The companies said that the European financial crisis will dry up their loans, reduce sales and intensify fluctuations in the currency rate, according to the poll.
The survey also showed that 44.7 percent of respondents forecast the credit crunch will be over in the second half of next year and 20 percent expected it will end in the first half of 2013.
“The effect of the European debt crisis has been limited in South Korea. But if it continues, that will seriously worsen corporations’ financial situations,” said an official from the KCCI.
(Yonhap News)
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