South Korean business sentiment index rises to 98.5 in July
The Bank of Korea's Composite Business Sentiment Index for all industries rose by 0.8 points month-on-month to 98.5 in July 2026. The broader Economic Sentiment Index also gained 1.1 points to reach 97.9.
Manufacturing drives sentiment recovery
The improvement in overall corporate sentiment was led by the manufacturing sector, where the Composite Business Sentiment Index climbed 2.0 points from the previous month to 103.2 in July 2026.
Industrial production and new order component indexes both saw gains, rising to 93 and 92 respectively.
Manufacturers' outlook for August also strengthened, increasing by 2.3 points to 100.5. In contrast, the non-manufacturing sector experienced a slight setback, with its index dropping 0.2 points to 95.2 due to flat business conditions and softer financial sentiment.
However, service providers remained cautiously optimistic about the coming month, pushing the non-manufacturing outlook index up by 0.5 points to 93.7.
Broader economic pulse turns up
Combining corporate survey metrics with consumer perception data, the overall Economic Sentiment Index rose 1.1 points to 97.9 in July 2026.
The cyclical component of the ESI, which strips out seasonal and irregular fluctuations to track underlying trends, edged up 0.2 points to 95.9. The survey, conducted between July 14 and July 22, sampled 3,524 companies across South Korea, drawing responses from 3,193 firms.
Both business and consumer indexes remain below the long-term benchmark average of 100.
Manufacturing gains mask underlying fragility
Industrial gains offer welcome relief, yet service sector weakness caps overall momentum.
With key indexes remaining below the long-term 100 mark, business confidence lacks broad support.
This slight uptick reflects a temporary reprieve rather than a sustained economic recovery.