Biz sentiment rises to over 4-yr high in Oct. on improved outlook: BOK

South Korea's business sentiment reached a four-year high in October, according to a survey conducted by the Bank of Korea (BOK). The Composite Business Sentiment Index (CBSI) for all industries reached 104.2, a 5.1-point increase from the previous month. This marked the highest level since August 2022, when the index had reached 105.5 following the COVID-19 pandemic. The index gauges corporate outlooks on overall business conditions, with a score below 100 suggesting that pessimists outnumber optimists.

The improvement in business sentiment was driven by increased investment and production in key sectors, such as semiconductors, automobiles, and shipbuilding. These sectors contributed to the growth of related upstream industries. Additionally, a strengthening Korean won helped local firms reduce the financial burden of purchasing imported raw materials. The CBSI among manufacturers rose by 6.1 points on a month-over-month basis to 105.6, the highest point since June 2022.