ΆΓ  Foreign Companies Optimistic on Economic Outlook

The Digital Chosun 2001.1.8

According to a survey by the Korea Trade Promotion Corporation (KOTRA) on 220 foreign firms based in Korea, 53.2% of total respondents said the Korean economic outlook for the next couple of years is optimistic while 28.2% are skeptical. The remaining 18.6% predict little change in the economy.

In response to what their investment plan was, 52.3% stated expansion while 8.7% forecast decline. In line with their optimistic view on the economic prospect, 87.3% expect their profitability to increase this year.

The respondents see financial reform (26.5%), transparency improvement (25.4%) and business reform (16.9%) as major issues to be resolved for the economy. And they pointed out Korean firms must continuously strive to enhance management transparency, technology development and corporate structural reform.

An spokesman at KOTRA who is familiar with the survey said "unexpectedly more foreign companies have a brighter outlook on the economy. That is probably they, unlike Korean counterparts, have no difficulty providing financing, and the questions are focused on the long term."

(Chung Sung-Jin, sjchung@chosun.com)