South Korean business sentiment turns positive for September

South Korean business sentiment is showing signs of broad recovery. According to the Federation of Korean Industries (FKI), the September Business Survey Index (BSI) 전망치 reached 102.0, marking the first time the index has exceeded the 100 baseline in six months.

This improvement is notable for its breadth, as both manufacturing and non-manufacturing sectors are expected to show positive outlooks simultaneously for the first time in nearly five years. While previous recoveries were concentrated in semiconductors and healthcare, the current trend is spreading to components and materials, aided by stabilized exchange rates. Additionally, domestic demand sentiment has recovered to above the baseline for the first time in 43 months, driven by expectations surrounding the Chuseok holiday.

Complementary data from the Korea Institute for Industrial Economics & Trade indicates that the August manufacturing Producer Survey Index (PSI) rose to 107, driven by strong performance in semiconductors and mobile phones. The outlook for September remains positive, with expectations for both exports and domestic demand to continue their upward trajectory.