May 18, 2009

Corporate financial conditions are likely to improve this month and the next, an industry survey found yesterday.The Korea Chamber of Commerce and Industry said its Business Survey Index on corporate Finance (FBSI) touched 109.8 for May and June, continuing the climb from the 107.8 recorded for March and April.A reading below 50 means weakened financial liquidity, while 100 represents a "regular" state of conditions. A reading of 150 signals "favorable" conditions, while reaching 200 means "very favorable," according to the KCCI.

The survey for the index, designed to gauge the corporate financial outlook, was conducted between April 30 and May 8 on a total of 500 companies.The respondents included 52 conglomerates, or 10.4 percent, and 448 small and medium-sized enterprises. Of them, the number of manufacturers totaled 252, or 50.4 percent, and non-manufacturing firms 248.Corporate liquidity seems to be improving, thanks to the increase in government support and the extension on loan payments by banks," the KCCI said in a statement.