S. Korean firms' short-term liquidity rise: poll

By Nam Kwang-sik
SEOUL, June 17 (Yonhap) -- A majority of South Korean manufacturers said their
liquid assets rose in the first five months of the year from a year ago as they
found little investment opportunities amid increased economic uncertainties, a
poll showed Wednesday.
According to the survey, 45.7 percent of the respondents said their short-term
funds grew in the January-May period from a year ago, while 33.6 percent said the
funds were the same level as last year.
Liquid assets refer to cash and other assets that can be converted quickly and
easily into cash within one year.
According to the results of the poll conducted by the Korean Chamber of Commerce
and Industry (KCCI), only 20.7 percent of the companies polled said that their
short-term liquidity fell during the same period compared with last year's. The
respondents who saw a rise in their liquid assets cited the reason for the rise
as increased economic uncertainties and weakened fund-brokerage functions
stemming from credit crunch in the banking sector.
40.2 percent of the companies polled said they will spend their short-term funds
on the purchase of raw materials, with 20.6 percent using them to repay their
debts.
"Most companies seem to manage the short-term liquidity due to economic
uncertainties and fears over credit crunch," KCCI said.
ksnam@yna.co.kr
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