South Korea’s business sentiment dips amid global economic concerns

South Korea’s business sentiment index for January has dropped to 91.1, reflecting growing concerns over a global economic slowdown and high interest rates, according to a poll by the Federation of Korean Industries (FKI). This marks a 2.9 point decrease from the previous month among 372 of the top 600 companies by sales. A reading below 100 indicates that pessimists outnumber optimists. The manufacturing sector’s Business Survey Index (BSI) fell to 87, continuing a 22-month decline, while the non-manufacturing sector recorded a slightly higher index of 95.2. The FKI, representing South Korea’s major conglomerates, cited the global economic slowdown, rising interest rates, and inflation as key factors behind the weakening sentiment.