Biz sentiment for March rebounds for 1st time in 5 months: BOK survey

Korea's business sentiment rebounded for the first time in five months in March, but the sentiment for the following month was pessimistic amid uncertainties at home and abroad, a central bank poll showed Wednesday.

The Composite Business Sentiment Index, or CBSI, in all industries for March came to 86.7, up 1.4 points from the previous month, according to the survey by the Bank of Korea (BOK).

It marked the first on-month increase since October, as sentiment had worsened markedly, falling to the lowest level since September 2020 in February, due mainly to President Yoon Suk Yeol's declaration of martial law in December and uncertainties stemming from U.S. President Donald Trump's sweeping tariff scheme.

The index measures corporate prospects for business conditions. A reading below 100 means pessimists outnumber optimists.

The CBSI among manufacturers climbed 1.8 points from a month earlier to 91.9 in March, and that among nonmanufacturers went up 1.2 points to 82.9.

The outlook for April, however, fell 2.4 points to 85.6, the survey showed.

"Exporters have expected worsening business circumstances with regard to the U.S.' new tariff policy. Uncertainties remain high and we should closely watch developments," BOK official Lee Hye-young told reporters.

The economic sentiment index, or ESI, which reflects sentiment among both consumers and businesses, fell 3 points to 87.2 for March.

The survey, conducted earlier this month, involved 3,308 companies, including 1,858 manufacturing firms, the BOK said.

The central bank has forecast the Korean economy to grow 1.5 percent in 2025, slowing from last year's 2 percent expansion. (Yonhap)