Business · Economy · 1 hr ago
South Korean business outlook stays negative for second month
South Korean companies' outlook remained negative for a second month, according to a survey of 600 large firms.
The Korea Economic Research Institute said the November business survey index was 98.6, below the 100 neutral mark.
Manufacturing fell to 92.1, while non-manufacturing rose to 105.2, its highest level since July 2024.
Electronics and communications equipment, which includes semiconductors, dropped 16.7 points to 83.3, turning negative for the first time in nine months.
Uncertainty about returns on AI investment, global oversupply and high material costs were cited as pressures on manufacturers.
Domestic demand expectations were positive for a third month, but export expectations remained negative.
The institute called for stronger tax support and looser labor rules as lawmakers discuss a bill on mega special zones to support investment and job creation.
South Korea’s November business outlook remained negative for a second consecutive month, with the Business Survey Index (BSI) at 98.6.
The Korea Enterprises Federation said the survey covered 600 companies ranked by revenue.
Manufacturing sentiment weakened, while non-manufacturing sentiment improved to its highest level since July 2024.
The outlook for electronics and communications equipment, which includes semiconductors, fell to 83.3, turning negative for the first time in nine months.
The articles cited uncertainty over returns on artificial intelligence investment and concerns about how long the semiconductor boom will last.
- Who
- The Korea Enterprises Federation surveyed 600 companies ranked by revenue.
- What
- The November business outlook BSI was 98.6, indicating a negative outlook.
- When
- The federation announced the results on October 28, 2026.
- Where
- South Korea.
- Why
- The articles cited uncertainty about returns on AI investment and the durability of the semiconductor boom, along with high raw-material costs and global oversupply.
This story does not have two clearly opposing sides.
The BSI forecast was 98.6, below the 100 threshold for a positive outlook.
The Korea Enterprises Federation announced a November BSI forecast of 98.6.
- November BSI forecast
- 98.6
- Companies surveyed
- 600, ranked by revenue
- Manufacturing BSI forecast
- 92.1
- Non-manufacturing BSI forecast
- 105.2
- Electronics and communications equipment BSI forecast
- 83.3, down 16.7 points from the previous month
What people are saying
Despite expectations of improvement in domestic demand and the service sector, the poor outlook for key manufacturing industries is weighing on business sentiment.