Biz sentiment hits 9-month high in August following US tariff deal: BOK survey
U.S. President Donald Trump, right, shakes the hand of President Lee Jae Myung during a meeting in the Oval Office of the White House, Monday, Aug. 25, in Washington. AP-Yonhap
Business sentiment in South Korea rose to a nine-month high this month amid reduced uncertainty following a high-stakes tariff agreement with the United States, a central bank survey showed Wednesday.
The Composite Business Sentiment Index (CBSI) for all industries stood at 91.0 in August, up 1.4 points from the previous month, according to data from the Bank of Korea (BOK).
The August figure marked the highest level since November 2024, when the index came to 91.8. It was also the first increase in three months.
The index measures corporate outlooks on overall business conditions, with a reading below 100 indicating that pessimists outnumber optimists.
The CBSI among manufacturers went up 1.4 points from the previous month to 93.3 in August, while the index among non-manufacturers advanced 0.7 point to 89.4.
The outlook for all industries for September also climbed 3.4 points to 91.8, the survey showed.
"Tariff-related uncertainty has been eased following the conclusion of negotiations with the U.S., and exports, particularly in semiconductors and automobiles, showed strong performance," a BOK official said.
"In the non-manufacturing sector, business conditions have improved, especially in the transportation, warehousing and retail fields, supported by the summer holiday season and the government's stimulus measures," he added.
Under the deal between Seoul and Washington reached late July, the U.S. lowered "reciprocal tariffs" for South Korea to 15 percent from the proposed 25 percent in return for Seoul's pledge to invest $350 billion in the U.S.
The survey was conducted earlier this month and included 3,300 companies, among them 1,843 manufacturers, the BOK said.