This file photo shows the buildings of South Korea’s major companies in Seoul. (Yonhap)
SEOUL, March 15 (Korea Bizwire) — More than 6 in 10 large firms in South Korea are feeling the pinch of the Russia-Ukraine war that has sent international material costs soaring, a poll said Tuesday.
The survey on 153 out of the country’s top 1,000 companies by sales showed 60.8 percent of the respondents saying they are being negatively affected by the Ukraine crisis.
In particular, nearly 90 percent of businesses having trade and investment relations with Russia and Ukraine think the crisis is having a negative impact on their management.
The Federation of Korean Industries, the lobby for South Korea’s family-controlled conglomerates, conducted the survey between March 2 and Friday.
According to the findings, about 51 percent of those firms being negatively impacted by the conflict cited the increased cost burden stemming from soaring oil and other major raw material prices as the main culprit.
Another 18 percent cited greater exchange-rate volatility and financing difficulties, followed by 15.1 percent pointing out a supply bottleneck and disrupted production
About 12 percent said Russia’s attack on Ukraine is causing weaker exports to both countries and neighboring nations.
In addition, some 94 percent of those companies expect an increase in their purchase prices of raw materials and parts, which will in turn lead to higher product prices.
Of the corporations anticipating increased costs, roughly 54 percent replied they will mark up product prices at an average rate of 6.1 percent, according to the survey.
(Yonhap)
