SEOUL, June 26 (Yonhap) — South Korea’s business sentiment worsened for the first time in four months in June amid slowing exports and rising tensions in the Middle East, a central bank survey showed Thursday.
The Composite Business Sentiment Index (CBSI) for all industries stood at 90.2 in June, down 0.5 point from the previous month, according to data from the Bank of Korea (BOK).
It marked the first on-month decline since February.
The index measures corporate outlooks on overall business conditions, with a reading below 100 indicating that pessimists outnumber optimists.
Cars are parked to be shipped at a Kia Corp. factory in the city of Gwangmyeong, just south of Seoul, on June 24, 2025. (Yonhap)
The CBSI among manufacturers fell by 0.3 point from the previous month to 94.4 in June, while sentiment among non-manufacturers dropped 0.7 point to 87.4.
“The decline in sentiment reflects rising U.S. tariff rates on steel, aluminum and related products, as well as growing geopolitical risks stemming from conflicts in the Middle East,” BOK official Lee Hye-young told a press briefing.
The outlook for July edged down 0.1 point to 89.4.
“We need to closely monitor the progress of tariff negotiations with the United States, as well as the timing of supplementary budget execution,” the official added.
The survey was conducted earlier this month and included 3,254 companies, among them 1,839 manufacturers, the BOK said.
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