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| President Yoon Suk Yeol meets with businesspeople over chicken, pizza and beer on the front lawn of the presidential office in Seoul, in this photo provided by the presidential office, May 23. Yonhap |
Korean smaller firms' business outlook switched to a downturn for June on the country's slowing economy, a poll showed Tuesday.
The survey of 3,058 small and medium-sized enterprises (SMEs) showed the small business health index (SBHI) standing at 81.1 for next month, down 2.7 points from May.
The figure represents a turnaround from May's increase to 83.8 from the previous month's 80.7.
A reading below 100 indicates pessimists outnumber optimists. The survey was taken by the Korea Federation of SMEs from May 15-22.
The downturn came amid the country's slumping exports and sluggish domestic demand. Korea's exports fell 14.2 percent on-year to $49.6 billion in April due mainly to sagging global demand for semiconductors, dropping for the seventh consecutive month.
According to the findings, the SBHI for the manufacturing sector stood at 84 for June, down 2.5 points from the prior month, with that for nonmanufacturing companies falling by 2.8 points to 79.9.
Some 61 percent of the respondents cited sluggish domestic demand as the biggest hurdle to their management, followed by high labor costs (44.5 percent), cutthroat competition (35.6 percent) and rising raw materials costs (34.3 percent).
The average capacity utilization rate of manufacturing SMEs came to 71.9 percent in April, down 0.7 percentage point from the previous month, according to the survey. (Yonhap)
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