Business sentiment remains pessimistic for 45th month on FX, tariff woes: poll

Containers are stacked at a port in Pyeongtaek, Gyeonggi Province, in this file photo taken Nov. 14. Yonhap

South Korea's business sentiment remains pessimistic for December, with local companies expressing concerns over foreign exchange volatility and tariff burdens, a poll showed Friday.

The business survey index (BSI) of the country's top 600 companies by sales stood at 98.7 for next month, according to a monthly poll by the Federation of Korean Industries.

A reading below 100 means pessimists outnumber optimists, while a figure above the benchmark means the opposite. The index has remained below the benchmark for 45 consecutive months since April 2022.

The BSI outlook for the manufacturing sector came to 91.9, down 4.9 points from the projection made for November.

Within manufacturing, the machinery and equipment sector posted a reading of 119. The electronics and telecommunication device sector, including semiconductors, posted 111.1, the data showed.

The non-metal material sector posted a figure of 69.2, with the metal industry showing 78.6. The BSI for the automobile and transportation equipment sector came to 97.1.

The BSI outlook for the non-manufacturing sector came to 105.2, hovering above 100 for the first time in five months, apparently on expectations for year-end demand.

Among non-manufacturing industries, the utility industry posted 121.1, followed by the leisure, accommodation and dining sector with 114.3.

The construction sector posted a reading of 95.5.

"While exports maintain a sound trend led by chips, the strong U.S. dollar and tariff burdens continue to weigh down on a majority of industrial sectors," Lee Sang-ho, head of the federation's economic and industrial division, said in the report.

"The government needs to address foreign exchange and tariff issues, and come up with measures to revitalize the competitiveness of major industries."