Two thirds of S. Korean exporters pessimistic about business: poll

SEOUL, Sept. 29 (Yonhap) -- Two thirds of South Korean exporters are expecting their export targets for 2011 not to be achieved mainly due to the global economic turmoil stemming from U.S. and European debt crises, a survey said Thursday.
According to the survey conducted by the Korea Chamber of Commerce and Industries (KCCI), 66.8 percent of 500 exporters were pessimistic about meeting their 2011 business goals with 30 percent optimistic about achieving their targets. Only 3.2 percent said they will exceed their goals, the survey showed.
The survey showed 56.8 percent of the respondents said that conditions for their exports worsened in recent months, while 11.8 percent thought they were better off.
The exporters said that they suffered from contracted demand in overseas markets, fluctuations in the currency rates and fiercer competition in the global market, according to the KCCI poll.
The poll also showed 87 percent of the respondents predicted that unfavorable external conditions will get worse or last until the end of the year, citing sluggish demand and currency risk.
"The worsening economic conditions will take a big toll on South Korean exporters. They are concerned about waning demand in importing countries amid the economic slowdown," the KCCI said.
Global economic activity has slowed mainly due to troubles in major economies such as the U.S. and the European Union, suffering from serious debt crises.
The South Korean currency fell more than 12 percent to the U.S. dollar in September compared with two months ago on global recovery woes, according to data compiled by the Bank of Korea. The depth of the won's depreciation was the largest among major currencies, which raises costs of raw material imports. South Korea is highly dependent on trade, with trade dependency reaching 110 percent of its gross domestic product in the first half of this year.
"The South Korean government should make efforts to support exporting companies by stabilizing the prices of commodities and currencies in order to minimize their damages," said the KCCI.
brk@yna.co.kr
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