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South Korean firms face tough road ahead

The dismal outlook for South Korea's economy next year indicates that South Korean companies will have a tough road ahead. A report from the Korean Chamber of Commerce and Industry (KCCI) and credit rating agency KoDATA showed that Korean companies’ fiscal health has deteriorated due to increased debt and lowered profitability. Kang Seok-gu, head of the KCCI’s research division, said that companies have put much effort into boosting exports and domestic sales despite the tough economic environment, but their operating profits have still decreased. The companies’ cumulative sales through the third quarter of this year grew by 19% compared to the same period last year but the growth rate has slowed. The Bank of Korea lowered its growth forecast for the Korean economy in 2023 to 1.7% from 2.1% it expected in August.

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