FX.co ★ South Korean Business Sentiment Improves to 10-Month High

In May 2025, South Korea's Business Survey Index (BSI) for the manufacturing sector climbed to 73, marking an increase from 68 in April and achieving its highest point since July of the previous year. This positive change aligns with a brief stabilization in the country's political environment and anticipations of reduced interest rates, which were facilitated by the rise in the won, creating more leeway for the Bank of Korea (BoK) to relax financial conditions. As a result, the forecast for the following month has improved to 71, marking the most optimistic outlook for the sector since November. Additionally, the broader Composite Business Sentiment Index (CBSI), encompassing all industries, rose to 90.7 from 87.9, driven by improved business conditions in non-manufacturing industries, which saw an increase to 66 from 44.