A majority of local businesses expect Korea’s economy to grow at a sluggish pace in 2012 mainly due to weak exports and a drop in consumer demand, a poll showed Monday.

The survey of 500 companies by the Korea Chamber of Commerce and Industry showed 58.4 percent of respondents predicting growth of less than 3 percent for this year, a sharp drop from 20.8 percent that forecast such a low GDP number in December.

The latest prediction is lower than the 3.8 percent growth tallied for last year and the 3.7 percent national growth target set by the government for 2012.

The KCCI said that 33 percent of companies polled expected growth to reach as high as 3.5 percent, with only 8.6 percent saying the country’s GDP growth will exceed 3.6 percent.

“The sharp rise in the pessimistic outlook is due to rising concerns that a general slowdown in the global economy will affect trade and South Korea’s exports,” said the country’s largest private economic organization with over 135,000 members.

The KCCI warned the drop in outbound shipments could hurt domestic business investments and consumption. (Yonhap News)