Business Sentiment Hits Highest Level in Over 4 Years Driven by Semiconductor Boom

[Economy 365]

Corporate business sentiment has reached its highest level in roughly four years, fueled by the strong performance of key industries such as semiconductors.

According to the Bank of Korea, the Business Sentiment Index (BSI) across all industries stood at 104.2 for October, up 5.1 points from a month earlier.

This marks the highest figure in four years and two months since August 2022, and the first time the index has surpassed the benchmark level of 100 in four years and one month.

The index for the manufacturing sector rose 6.1 points to 105.6, while the non-manufacturing sector gained 4.3 points to 103.2.

Notably, the improvement was greater among small and medium-sized enterprises (SMEs) and domestic-market oriented firms than among large conglomerates and exporters.

The Bank of Korea analyzed that the rise was driven by a base effect from reduced working days due to the Chuseok holiday and automaker strikes last month, alongside increased production and investment in semiconductors, automobiles, and shipbuilding spreading to downstream industries.

A decrease in raw material purchasing burdens resulting from falling exchange rates also contributed to the improvement.

*This article was produced with AI audio.
※ Please note: This article was translated by AI and may contain errors.