South Korea's business outlook remains sluggish for 33 consecutive months, the longest period on record, with manufacturing and non-manufacturing sectors showing mixed results

The Korea Business Association recently conducted a Business Sentiment Index (BSI) survey of the top 600 companies based on sales. The BSI for December 2024 is 97.3, which is the benchmark value of 1
It has remained below 100 for 33 consecutive months since April 2022. This is the longest period of time that it has remained below 100 since the BSI statistics began in January 1975.
The economic outlook for December varied by industry. The manufacturing sector was at 89.9, down 5 points from July's 88.5.
The index fell below 90 for the first time in months. The association said the outlook was worsening due to the prolonged stagnation of the domestic market, with the supply of products from manufacturers declining for five consecutive quarters.
On the other hand, the non-manufacturing BSI rose 12.6 points from the previous month to 105.1, recovering for the first time in five months. The outlook reflects the industry's expectations following increased demand at the end of the year.
Looking at the manufacturing industry in detail, out of the 10 industries, motor vehicles and other transportation equipment (105.7) was the only one with an optimistic outlook. Food, beverages, tobacco and pharmaceuticals (both 100.0) were the only ones with an optimistic outlook.
In the non-manufacturing sector, the outlook for electricity, gas, and water (126.3) and leisure, accommodation, and eating out (123.1) were high.
By sector, the outlook for a recession was for all sectors, including the domestic economy (98.4), exports (97.3), employment (94.3), and investment (89.9).
The economy, exports and investment have been sluggish for five consecutive months.