Domestic firms are pessimistic about business conditions for June. The business survey index recorded 98.3 for the next month, far below May's 104.7, according to a survey of 600 top businesses in terms of sales released by the Federation of Korean Industries on Monday. A BSI below 100 means pessimists outnumber optimists.
Businesses attribute their pessimism to mounting worries about the eurozone crisis, including the increasing possibility of Greece's eurozone exit and default, as well as to China's economic slowdown and a possible rise in oil prices due to suspension of imports from Iran. High oil prices are a price-destabilizing factor, leading to hikes of public utility charges.
The FKI said, "In the wake of negative factors at home and abroad, many businesses have doubts that business will get better in the second half of this year."