SEOUL - South Korean businesses are facing a pessimistic outlook for July due to ongoing uncertainties in export markets, according to a recent survey. The business sentiment index (BSI) for the country's top 600 companies remained below the optimism threshold, reflecting broader economic concerns.
According to Yonhap News Agency, the BSI for July stands at 96.8, continuing its trend below 100 since April 2022—a level indicating that pessimists outnumber optimists among business leaders. The manufacturing sector experienced a significant drop in confidence, with its BSI falling 7.4 points to 88.5. Exporters are particularly apprehensive about a potential slowdown in major export destinations like the United States and China in the latter half of the year. Conversely, the index for the nonmanufacturing sector saw a rise of 10.3 points to 105.5, buoyed by expectations of increased activity during the summer vacation season. The FKI highlighted the need for cautious legislative deliberations that could impact business morale, particularly discussions around the revision of the Labor Relations Adjustment Act, which are believed to potentially dampen the business environment further.