Companies brace for growing uncertainties in 2nd half
Soaring raw material costs, higher interest rates to curb business activities By Kim Hyun-binKorean companies are expected to face growing uncertainties in the second half of this year, as soaring energy and raw material costs, coupled with higher interest rates and the won's falling value against the dollar, continue to weigh on production, consumption and investment, according to company officials.In particular, energy demand will likely spike in the wake of the early summer heat wave, forcing Korea to import more oil and gas, which will further widen the nation's trade deficit, they said.“There are aspects that are virtually uncontrollable regarding external variables surrounding our trade environment,” said Moon Dong-min, head of the Trade and Investment Office at the Ministry of Trade, Industry and Energy.Korea's trade deficit in the first half of this year exceeded $10 billion, the highest level recorded in the first half of any year.According to the ministry, exports in the first half of the year increased by 15.6 percent to $350.3 billion, and imports increased by
