Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Business sentiment for April turns pessimistic due to Middle East crisis: Poll – Full Analysis.
Published: 26 Mar. 2026, 10:27
Containers are stacked at a cargo terminal in Busan Port on March 6. [YONHAP]
Korea’s business sentiment turned negative for April due to the prolonged Middle East crisis, a survey showed on Thursday.
The business survey index (BSI) of the country’s top 600 companies by sales stood at 85.1 for next month, down sharply from 102.7 for March, according to the monthly poll by the Federation of Korean Industries (FKI).
A reading below 100 means pessimists outnumber optimists, while a figure above the benchmark indicates the opposite.
The index had remained below the benchmark for 47 consecutive months through February but rebounded to 102.7 in March, driven by robust exports of chips and automobiles.
The BSI outlook for the manufacturing sector came to 85.6 for April, falling sharply from 105.9 in March, marking the largest on-month decline since April 2020 in the middle of the Covid-19 pandemic.
Within manufacturing, the oil refinery and chemical industry reported a reading of 80, with the electricity and gas sector posting 63.2.
The BSI outlook for the nonmanufacturing sector came to 84.6.
The FKI said hikes in crude oil prices and shipping costs weighed heavily on business sentiment.
“As tensions in the Middle East escalate, concerns over crude oil supply and demand are growing, leading to a decline in business sentiment,” said Lee Sang-ho, the head of the federation’s economic and industrial division. “Proactive fiscal policies and support measures to prevent a slowdown in corporate business activities are urgently needed.”
Yonhap