South Korean businesses are feeling down about the month ahead, with worries over US tariff hikes and other global uncertainties dragging on their mood. A new poll from the Federation of Korean Industries (FKI) shows the Business Survey Index (BSI) for October at 96.3 among the country’s top 600 companies by sales. That’s below the key 100 mark, where pessimists outnumber optimists—a trend that’s lasted 43 straight months since April 2022.
In manufacturing, the index hit 96.8, while non-manufacturing sectors scored a lower 95.8. Some bright spots emerged in export-heavy areas: electronics and communication devices led with 115.8, and automobiles plus transportation equipment followed at 102.9. But oil refining, chemicals, petrochemicals, and steel industries pulled things down to 93.5, thanks to their ongoing slumps.
The FKI pointed out that while semiconductors, autos, and ships are doing better, the tough times in petrochemicals and steel are souring the overall outlook for those companies.
Non-manufacturing areas faced even steeper challenges. Construction businesses reported a gloomy 82.2, and leisure plus accommodation came in at 92.9.
FKI’s economic research head, Lee Sang-ho, warned that shrinking investment confidence in this tough environment could weigh heavily on South Korea’s economic growth. He called for steps to steady the global trade scene and push through bold regulatory reforms to boost business spirits.
On a more upbeat note, South Korea’s business sentiment actually improved in September, reaching a 10-month high. The Bank of Korea’s (BOK) Composite Business Sentiment Index (CBSI) for all industries climbed to 91.6, up 0.6 points from August. That’s the best reading since November 2024’s 91.8 and marks two months in a row of gains.
Like the BSI, the CBSI gauges company views on business conditions, with anything under 100 signaling more pessimism. Manufacturers saw a small bump to 93.4, up 0.1 point, while non-manufacturers jumped 1.1 points to 90.5. Government stimulus measures and stronger chip production helped drive the lift.
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