South Korea's business confidence index for next month dropped to a nearly 11-year low amid the ongoing global economic crisis, an industry survey showed today.

According to the Federation of Korean Industries (FKI), the monthly business survey index for January 2009 stood at 52, marking the 10th straight month of recording a reading below 100.

The figure was down from 55 in the previous month and also the lowest level since March 1998, when it posted 48, the FKI said.

"Exports are falling at a faster pace and a credit squeeze continues in the financial sector," the FKI said as the reason for the fall.

The business survey index is an indicator of companies' outlook for the coming month. If the number is below 100 it means that the number of pessimistic companies outnumbers optimists