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

South Korea's business sentiment for the fourth quarter of the year improved, buoyed by strong exports of semiconductors and cosmetics, according to a survey released on Sunday. The Business Sentiment Index (BSI) for 2,413 manufacturing companies nationwide stood at 86 for the October-December period, marking a 6-point increase from the previous quarter.

A reading below 100 indicates a majority of pessimists, while a figure above 100 suggests optimism. The semiconductor sector index for the quarter hit 139, the highest since the survey began, and remained above the benchmark for four consecutive quarters. Meanwhile, the cosmetics sector index rose 20 points to 120, and the medical and precision equipment sector index gained 28 points to 108.

Despite the improvement in business sentiment, 60.4% of companies surveyed expected their operating profits this year to fall short of their targets set at the beginning of the year. The primary reason for this outlook was attributed to higher production costs resulting from rising raw material and energy prices.