A majority of trade associations in South Korea cited a possible decline in demand caused by slowing economic growth as a reason for concern in their business outlooks this year, a survey showed Wednesday.
According to the survey by the Federation of Korean Industries of 31 business associations representing each sector including steel, automobiles and semiconductors, 23 groups or 74.2 percent said the economic slump and a possible decline in demand are major concerns this year.
Of those surveyed, 17 groups or 54.9 percent said stricter environmental regulations are the most worrying, followed by intensifying market competition and potential tax hikes at 42 percent and 9.7 percent.
The survey, in which participants were allowed to choose multiple answers, also showed that only one association said a possible salary increase is a cause for concern.
On the international front, 64.5 percent said the slowing economic growth in their target countries could dim business prospects, with 25.8 percent and 12.9 percent citing technological advances by China and fiercer competition from Japan as major concerns.
More than 40 percent saw the downward trend in international crude oil prices as a benefit to their business.
The survey showed that 45.1 percent expected the falling crude oil prices to help improve their profitability, with 32.3 percent worrying about a negative impact.
Meanwhile, 13 associations said the outlook for their sectors including steel, energy, oil and food will worsen “slightly” this year, while seven including semiconductors, display, electricity and construction expected slightly better prospects. (Yonhap)
