South Korean business sentiment rose for a second straight month in August, reaching its highest level in nearly four years, driven by improved performance in services such as information and communications.
The Composite Business Sentiment Index (CBSI) for all industries came in at 99.6 this month, up 1.1 points from the previous month, according to a business survey released by the Bank of Korea on the 26th. It marked the second consecutive monthly gain and the highest reading since September 2022, when it stood at 102.0 — a span of three years and 11 months.
The CBSI is a sentiment gauge derived from the main components of the Business Survey Index (BSI), covering five manufacturing and four non-manufacturing categories. A reading above the historical average of 100 (from January 2003 to December 2025) indicates optimistic business sentiment about the overall economy, while a reading below signals pessimism.
By sector, the manufacturing CBSI reached 103.8, up 0.6 point from the previous month, the highest level in four years and two months since June 2022, when it stood at 107.1. Product inventories (+0.6 point) and funding conditions (+0.4 point) led the gain.
The non-manufacturing CBSI rose 1.5 points to 96.7, driven by sales (+0.6 point) and funding conditions (+0.5 point).
A Bank of Korea official said manufacturing results improved in areas such as electronics, video and communications equipment, and food products, while non-manufacturing improved in sectors including transportation and warehousing and information and communications.
By company size, the manufacturing CBSI for large companies fell 1.6 points to 103.7. The manufacturing CBSI for small and medium-sized enterprises rose 2.2 points to 99.8, the highest level in three years and two months since June 2023, when it stood at 103.2.
Companies' outlook for future conditions also improved. The all-industry CBSI forecast for September rose 3.1 points to 99.6. The manufacturing forecast rose 2 points to 102.5, while the non-manufacturing forecast climbed 3.9 points to 97.6.
The Economic Sentiment Index (ESI) for August stood at 99.4, up 1.5 points from the previous month. The cyclical component of the ESI, which strips out seasonal factors, rose 0.4 point from the previous month to 96.9.
