Biz sentiment for Q4 improves on robust semiconductor, cosmetics exports: poll

The business sentiment in South Korea for the fourth quarter of 2021 improved, driven by strong exports of semiconductors and cosmetics, according to a survey released on Sunday. The business survey index (BSI) for 2,413 manufacturing companies across the country reached 86 for the October-December period, an increase of 6 points from the previous quarter, as reported by the Korea Chamber of Commerce and Industry (KCCI).

A score below 100 signifies that pessimists outnumber optimists, while a figure above 100 indicates the opposite. In the semiconductor sector, the index for the fourth quarter was 139, the highest reading since the survey began, and it remained above the benchmark for the fourth straight quarter. The cosmetics sector saw its index rise by 20 points to 120, while the medical and precision equipment sector experienced a 28-point increase to 108.

Despite the positive business sentiment, however, 60.4% of companies anticipated their operating profits for the year would fall short of the targets they set at the start of the year, primarily due to higher production costs resulting from increased raw material and energy prices.