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Business sentiment improves for June but remains in negative territory, industry poll shows

Published: 27 May. 2025, 09:22

Container loading and unloading operations are underway at Incheon New Port in Incheon on May 16. [NEWS1]

Korea's business sentiment improved for June, buoyed by a partial easing of U.S.-China trade tensions, but remained in negative territory for the 39th consecutive month, an industry poll showed Tuesday.

The business survey index (BSI) of the country's top 600 companies by sales stood at 94.7 for June, up 9.7 points from that of May, 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. Despite the monthly gain, the index has remained below 100 for 39 consecutive months since April 2022.

The BSI for the manufacturing sector came to 96 for June, surging 16.8 points compared to the previous month, while the index for nonmanufacturing was recorded at 93.5.

The rebound for the manufacturing BSI was primarily driven by the electronics and telecommunications equipment sector amid the partial easing of global trade uncertainty following a recent tariff agreement between the United States and China.

In the nonmanufacturing sector, only wholesale and retail showed a positive outlook. Other segments continued to show weakness due to a prolonged slump in domestic demand.

"To drive a solid recovery in business sentiment, we need to support the economy with expansionary fiscal and monetary policy, and respond proactively to trade risks," an FKI official said.

Yonhap