South Korea's Business Sentiment Improves for Second Month, Yet Uncertainties Linger

South Korea's composite business sentiment index (CBSI) rose for a second consecutive month to 93.7 in December 2025, according to central bank data released on December 30. The improvement, attributed to year-end seasonal factors, was seen across both manufacturing and non-manufacturing sectors. Despite the uptick, the index remains below the long-term average of 100, reflecting persistent economic uncertainties.

Manufacturers cited faltering domestic demand and exchange rate volatility as key concerns, while non-manufacturers pointed to weak consumer spending and high labor costs. A separate economic sentiment index, capturing both business and consumer views, slightly decreased, underscoring the fragile nature of the recovery.