Seoul: South Korea's business sentiment remains pessimistic for February, a poll showed Wednesday, amid the weakening of the South Korean won and growing uncertainties at home and abroad. The business survey index (BSI) of the country's top 600 companies by sales stood at 87 for next month, according to the monthly poll by the Federation of Korean Industries (FKI).
According to Yonhap News Agency, a reading below 100 indicates that pessimists outnumber optimists, while a figure above the benchmark suggests the opposite. The index has remained below 100 for 35 consecutive months since April 2022, highlighting ongoing challenges in the business environment.
The BSI for the manufacturing sector came to 93 for February, showing a slightly less pessimistic outlook compared to the overall sentiment. In contrast, the index for nonmanufacturing was recorded at 81.4, indicating a more significant downturn expected in these sectors.
Among manufacturing industries, only the machinery and tech sectors showed positive outlooks. This highlights a divide within the manufacturing sector, where certain industries are more resilient to current economic pressures. Conversely, all nonmanufacturing sectors were projected to experience downturns in the month, pointing to broader challenges outside manufacturing.
"The weaker won, rising oil prices and increasing uncertainty in the business landscape have significantly weakened corporate sentiment," a FKI official stated. The official further warned that if this downturn in sentiment persists, it could excessively reduce investment and employment, potentially impacting the broader economy.