SEOUL, December 27 (AJP) - South Korean business sentiment fell to its lowest level since September 2020, with the Business Survey Index (BSI) dropping 4.5 points to 87.0 in December amid political uncertainty and currency volatility, the Bank of Korea reported Friday.
The manufacturing sector index fell 3.7 points on deteriorating business conditions and funding difficulties, while the service sector dropped 5 points due to worsening profitability and financial conditions.
The January outlook appears even bleaker, with the overall BSI forecast falling 7.3 points to 82.4.
"Rising exchange rates have impacted raw material prices, particularly affecting chemical and automotive sectors," said Hwang Hee-jin, head of the central bank's statistics team.
"Concerns over strengthened protectionist policies from the new U.S. administration and weakening Chinese demand have also contributed to the decline."
The service sector's January forecast showed the steepest decline in nearly five years, dropping 10 points to 80.3, which officials attribute to consumer spending cuts following the December martial law declaration.
The survey, conducted from Dec. 11 to 18, gathered responses from 3,292 companies nationwide.
Copyright ⓒ Aju Press All rights reserved.