SEOUL, July 8 (Korea Bizwire) – According to a survey by the Federation of Korean Industries on the nation’s top-30 non-financial business groups asking about business conditions for the second half of 2014, most groups answered they would focus more on business risk management and strengthening of financial soundness rather than outward growth.
Of the respondents, 76.6 percent said their strategic priority for the next half would be management of risks including that arising from unfavorable exchange rate movements (40.0%) and financial soundness improvement including restructuring (36.6%). It was then followed by sales revenue growth and market share gaining (10.0%), increasing growth potential (6.7%), and safety-first management (6.7%).
As to a question asking how the economic condition would turn out in the next six months, 20 group respondents (66.7%) answered there would be little difference from the first half, followed by “better than the first half” (20.0%) and “worse than the first half” (13.3%).
The biggest problems faced by the business groups were declining profitability (26.7%) and ongoing recession in the domestic economy (23.3%). Other obstacles to their business included export problems (13.3%), rising production cost (10.0%), government regulation and rising competition (10.0%), and lack of working capital (6.7%).
The aggregate investment level planned by the top-30 groups for the whole year would be almost the same as that set in the beginning of the year.
To a question asking about the actual investment level in comparison with the planned investment level announced earlier in the year, 24 group respondents (80.0%) said “it would be almost at the same level as planned earlier in the year” while four respondents (13.3%) answered the investment would be lower than planned because of the slower pace of the global economic recovery and the difficulty of raising investment capital. Only two respondents (6.7%) said the investment would be larger than planned.
Written by Sean Chung (email@example.com)