Seoul: South Korea's business sentiment remains pessimistic for February due to increased volatility in the foreign exchange market coupled with a global economic slump, a poll showed Wednesday. The business survey index (BSI) of the country's top 600 companies by sales stood at 93.9 for next month, reflecting the ongoing concerns within the business community.
According to Yonhap News Agency, a reading below 100 means pessimists outnumber optimists, while a figure above the benchmark indicates the opposite. The index has remained below the benchmark for 47 consecutive months since April 2022, indicating a persistent trend of pessimism among South Korean businesses.
The BSI outlook for the manufacturing sector came to 88.1 for February, down from 91.8 this month. Within manufacturing, the electronics and telecommunication equipment sector reported a reading of 73.3, while the oil refining and petrochemical industry posted 75.9. These figures reflect the specific challenges faced by these industries amidst the broader economic downturn.
The BSI outlook for the non-manufacturing sector came to 99.5, with the utility services segment reporting a positive outlook of 115.8, while the wholesale and retail industry posted 98.2. This variation highlights differing levels of optimism across sectors, with some non-manufacturing areas maintaining a more positive outlook.
"Due to the prolonged economic slump, businesses are already posting sluggish earnings," Lee Sang-ho, head of the federation's economic and industrial division, said in the report. "We need to continue monitoring external risks and reduce regulatory burdens to improve business sentiment."