Dec. BSI plunges to 28-mo. low

Amid fast-deteriorating economic conditions, the monthly business survey index (BSI), a leading barometer of business sentiment in the coming months, has fallen to its lowest level in 28 months.

The Federation of Korean Industries (FKI) said Tuesday that the BSI for December, calculated on the basis of a poll of the nation's 600 largest conglomerates, stood at 68.0. This is the lowest level since August 1998, when the Korean economy was mired in a severe slump in the wake of the financial crisis.

A BSI reading below 100 means that more industrialists see the economy worsening in the future than those who see it improving. Experts said the slump began with jitters on financial markets and that pessimistic consumer sentiment has now begun to affect industrialists.

Park Won-Jae parkwj@donga.com