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last mo.

South Korea’s Business Confidence Remains Pessimistic for July as Manufacturing Slump Deepens

Fiscal stimulus expectations have boosted service-sector confidence on the back of summer travel.

This file photo from Feb. 12, 2025, shows shipping containers at a port in South Korea's southeastern city of Busan. (Yonhap)
Cars are parked to be shipped at a Kia Corp. factory in the city of Gwangmyeong, just south of Seoul, on June 24, 2025. (Yonhap)

Overview

  • The Federation of Korean Industries’ July poll showed an overall BSI of 94.6, marking 40 consecutive months below the 100 optimism threshold.
  • Manufacturing sentiment stayed negative for the 16th straight month with a sector BSI of 86.1, underscoring ongoing downturns.
  • Within manufacturing, only food, beverage and tobacco companies reported a positive outlook.
  • Non-manufacturing confidence rebounded after seven months with a BSI of 103.4, led by lodging, dining, logistics and retail.
  • FKI officials warned that boosting export competitiveness and proactively addressing trade tensions are essential for reviving manufacturing.