A survey found that 7 out of 10 domestic companies would turn into a loss when oil prices rise to $150 a barrel.
The Korea Federation of Entrepreneurs commissioned Mono Research and announced the results of a survey on 'the impact of a surge in international oil prices on companies' conducted from the 7th to the 15th of this month for manufacturing companies with sales of 1,000.
Of the 151 companies that responded to the survey, 70.1% of the companies that responded were found to be in the red when the price of oil was over $150.
Even at the current oil price of $100, 13.2% of companies said they would turn into a loss.
The average oil price expected to turn into a loss for the responding companies was found to be 142 dollars per barrel.
All of the responding companies said they could even consider shutting down their plants if oil prices exceed $200.
80.1% of the responding companies answered that the rise in oil prices had a negative impact on business management, and there were no companies that judged positively.
As for how long the oil price hike will last, 84.6% predicted within six months.
It was found that 76.2% of companies said their profitability (operating profit) deteriorated due to an increase in oil prices, and their operating profit decreased by an average of 5.2%.
76.2% of companies said they would reduce their existing investment plans in the aftermath of rising oil prices, and the average scale of reduction was 2.7%.
On the other hand, 21.8% of companies plan to increase their investment to 5% or less.