CEOs Pessimistic About Economy: Poll

In a survey on the Korean economy for 2007, 58 out of 100 respondents were pessimistic about it. Among the pessimists, 56 said the economic situation will be “worse than last year,” and the other two said “much worse.”

Thirty one said the situation will not change drastically, while ten said, “It will be slightly better than last year,” and the other one did not respond.

In other words, 59 viewed that Korea’s economy will grow between 4.0% and less than 4.5% in 2007, and 31 said it will grow less than 4.0%. In short, nine out of ten responded the growth will be less than 4.5%.

On economic risk factors for this year (two answers can be chosen), a majority of the respondents, 53, said, “A further depreciation of the won-dollar exchange rate.” Forty eight chose “financial crisis caused by speculation in real estate,” and 41 said, “Political factors such as the presidential election and the lame duck administration.”

Regarding what President Roh Moo-hyun should focus on in 2007, at the end of which his term ends (two answers can be chosen), 59 chose “swift deregulation on corporations.”

The answer was followed by “active pursuit of policies for the market opening including the FTA between Korea and the U.S.,” chosen by 48 – which shows that the respondents want the Roh administration to concentrate on improving the investment environment for corporation and opening the Korean market.

Most of the respondents, 42, evaluated the current government’s performance on the economy has been “a little bit poor,” which was followed by “extremely poor,” chosen by 24. Overall, 66% of those who surveyed were negative of the administration’s performance.

On the question of what they expect candidates for the presidential election at the end of this year to pledge to do on the economy (two answers can be chosen), 50 said “swift deregulation on corporations.” The next came “better real estate policies to stabilize housing prices,” chosen by 45, and “reforming the public sector such as downsizing of the government and privatizing public companies, chosen by 43.

The respondents of the survey were 30 CEOs or high-ranking officials of the top 30 companies in Korea; 30 CEO or officials of the financial institutions including banks, insurances, card companies and securities companies; 20 economics or management professors; 10 economists of government or private economic institutions; five officials of large economic organizations; five CEOs of venture companies.