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South Korea companies see business conditions improving despite subprime crisis

South Korea companies see business conditions improving despite subprime crisis

Major South Korean companies expect business conditions to continue to improve in September despite global credit worries, with both exports and domestic consumption increasing, according to a business survey index released Wednesday.
"Despite the latest U.S. subprime and global credit market jitters, the stable dollar-won exchange rate of late is expected to help boost exports with improved profitability," the Federation of Korean Industries, or FKI, said in a statement.
The federation also noted that 65.4 percent of businesses surveyed said the impact of U.S. subprime mortgage and global credit troubles will only be temporary.
The federation's main survey index rose to 111.8, up from 102.5 for August. A reading above 100 indicates most companies expect the overall business environment and economy to improve from the previous month. A reading below 100 indicates the majority expect conditions to worsen.
The subindex for the manufacturing sector rose to 111.3 for September, compared with 101.4 for August. The non-manufacturing index rose to 112.6 from 104.4.
The federation said improving domestic consumption and settling property prices also support the positive outlook for business conditions.
The subindex for domestic demand rose to 117.8 from 100.2. The index for exports rose to 106.6 from 101.7.
The federation surveyed South Korea's 600 largest companies by revenue between Aug. 20 and 24, yielding 558 responses.