Outlook for Korean SMEs remains underwhelming

A market designed to promote the products of small businesses at a department store in central Seoul on July 3 [YONHAP]

The business outlook for Korea's smaller firms remains below par for the second half of the year amid a sluggish economy, a poll showed Tuesday.

The survey of 500 small- and mid-sized enterprises (SMEs) showed the country's small business health index (SBHI) amounting to 88.7 for the July-December period.

The figure was up 6.4 points from six months earlier, but it still fell below the benchmark.

A reading below 100 indicates pessimists outnumber optimists, and vice versa. The survey was taken by the Korea Federation of SMEs from July 3-7.

Korea's SME sentiment has been in the doldrums due to slumping exports, anemic domestic demand, rising raw material costs and other negatives.

Yonhap