S Korea's business sentiment falls to 3-year low

South Korea's business sentiment for August fell to a three-year low due to growing concerns over a global economic slowdown sparked by the persistent European debt crisis, a poll showed Sunday. The monthly business survey index (BSI) for the upcoming month came in at 82.7, the lowest point in more than three years since March 2009, when the figure stood at 76.1 amid the global financial crisis, according to the survey by the Federation of Korean Industries (FKI), the lobbying group for the country's large businesses. The monthly forecast dropped for three consecutive months, with the number hitting 98.3 for June and 89.7 for July. A BSI reading below 100 mark means pessimists outnumber optimists. The poll surveyed the country's 600 largest businesses by sales. The FKI said the decline is attributable to deepening European woes, as Spain is on the verge of receiving a eurozone bailout to rescue its ailing banks and Germany's credit rating was threatened to be lowered, South Korea's (Yonhap) News Agency reported. "The slump in the latest BSI number is because companies fear a spillover of the crisis to big countries like Germany and a slowdown in the Chinese economy," said the KFI in a statement. On the local front, the survey showed the weak property market and losses in the stock market are exerting negative influence on private consumption and business confidence. By sector, the latest BSI forecasted the service industry and the manufacturing sector will struggle in August, with numbers standing at 86.1 and 80.1, respectively. The readings for the electronics and communications equipment sector stood at 91.7, with petrochemical sector reaching 70.2, according to the survey.