Biz sentiment hits 10-month high in September on chips, stimulus: BOK survey

Visitors at the international advanced semiconductor substrate and packaging industry expo in the western city of Incheon observe the CPU semiconductor package substrate manufacturing process at Samsung Electronics Co.'s booth in this Sept. 4 file photo. Yonhap

Business sentiment in South Korea rose to a 10-month high this month, driven by improvement in the chip and other manufacturing fields, and the government's stimulus measures, a central bank survey showed Friday.

The Composite Business Sentiment Index (CBSI) for all industries stood at 91.6 in September, up 0.6 point from the previous month, according to data from the Bank of Korea (BOK).

The figure marked the highest level since November 2024, when the index came to 91.8. It also marked the second consecutive monthly gain.

The index measures corporate outlooks on overall business conditions, with a reading below 100 indicating that pessimists outnumber optimists.

The CBSI among manufacturers edged up 0.1 point from the previous month to 93.4 in September, while the index among non-manufacturers advanced 1.1 points to 90.5.

"Amid heightened uncertainties due to delays in follow-up U.S. tariff negotiations, the manufacturing sector, led by semiconductors, showed slight improvement, while non-manufacturing, particularly retail and wholesale, also benefited from the government's consumer coupons and other policy measures aimed at boosting domestic demand," a BOK official said.

The outlook for all industries for October, however, sank 3.3 points to 88.5, the survey showed.

Under the deal reached between Seoul and Washington in late July, the United States lowered "reciprocal" tariffs for South Korea to 15 percent from the proposed 25 percent in return for Seoul's pledge to invest US$350 billion in the U.S.

Bilateral talks are under way to set details of the agreement, with no formal agreement having yet been finalized.

The survey was conducted earlier this month and included 3,298 companies, among them 1,843 manufacturers, the BOK said.