Korean retailers downbeat over Q1 biz outlook: poll

By Nam Kwang-sik
SEOUL, Dec. 29 (Yonhap) -- A majority of South Korean retailers remain gloomy
about their business outlook in the first quarter of next year due to weakening
domestic demand, a poll showed Monday.
The Korea Chamber of Commerce and Industry said its retail business survey index
was down to 73 for the January-March period from 98 for the fourth quarter of
this year.
A reading below 100 means that pessimists outnumber optimists. The survey was
conducted among 945 retailers, including discount shops and department stores
across the country.
The index has remained below the benchmark 100 for three consecutive quarters
since the first quarter of this year.
"Shrinking consumer confidence is forecast to create tough times for local
retailers in the first quarter of next year," said the chamber.
In December, the Bank of Korea lowered its key interest rate by a record full
percentage point to an all-time low of 3 percent to bolster the economy. The bank
has cut the rate by a combined 2.25 percentage points since early October.
South Korea's economic growth is widely expected to stay in the high 1-percent
range next year due to a global economic downturn.
ksnam@yna.co.kr
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