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Business sentiment remains pessimistic over weak won, global uncertainty

Published: 22 Jan. 2025, 09:44 Updated: 22 Jan. 2025, 17:26

Shipping containers at a port in Korea's southeastern city of Busan. [YONHAP]

Korea's business sentiment remains pessimistic for February, a poll showed Wednesday, amid the weakening of the won and growing uncertainty 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).

A reading below 100 means pessimists outnumber optimists, while a figure above the benchmark means the opposite. The index has remained below 100 for 35 consecutive months since April 2022.

The BSI for the manufacturing sector came to 93 for February, while the index for nonmanufacturing was recorded at 81.4.

Among manufacturing industries, only the machinery and tech sectors showed positive outlooks. All nonmanufacturing sectors were projected to experience downturns in the month.

"The weaker won, rising oil prices and increasing uncertainty in the business landscape have significantly weakened corporate sentiment," a FKI official said. "If this downturn in sentiment persists, it could excessively reduce investment and employment."

Yonhap