Export cargo containers stacked at Busan Port amidst export momentum. (Photo=Yonhap News Archive Photo)
According to Yonhap News,
(Seoul=Yonhap News) Reporter Lim Sung-ho = A survey revealed that domestic manufacturing enterprises' business outlook for the fourth quarter of this year improved compared to the previous quarter, bolstered by robust exports in sectors such as semiconductors and cosmetics.
However, operating burdens on the ground remain heavy, with 6 out of 10 manufacturing firms anticipating difficulty in achieving their annual operating profit targets.
According to the 'Q4 2026 Manufacturing Business Survey Index (BSI)' released by the Korea Chamber of Commerce and Industry (KCCI) on the 27th covering 2,413 manufacturing companies nationwide, the manufacturing BSI stood at 86, up 6 points from the previous quarter (80).
A BSI reading above 100 indicates that more companies view economic conditions in the upcoming quarter positively compared to the preceding quarter, while a reading below 100 indicates the opposite. Although companies holding negative views still outnumber those with positive outlooks, the figure signifies a reduction in pessimistic sentiment.
The BSI for exporting enterprises rose 5 points from 86 to 91 as shipments of key export items expanded, while the BSI for domestic market-focused firms increased 7 points from 78 to 85, influenced by foreign exchange stability. This marks the first time in five quarters—since Q3 2025—that export and domestic market sentiment indices have rebounded concurrently.
The number of industrial sectors expecting economic conditions to improve in the coming quarter also expanded. While semiconductors (113) was the sole sector exceeding the baseline threshold (100) in Q3 of this year, the count grew to five sectors in Q4: semiconductors, cosmetics, medical/precision instruments, shipbuilding, and pharmaceuticals/bio.
In particular, semiconductors (139) recorded its highest figure since compilation began, exceeding the benchmark threshold for four consecutive quarters. Cosmetics (120) and medical/precision instruments (108) rose sharply by 20 and 28 points, respectively. Non-metallic minerals (88)—which recorded the lowest level among surveyed sectors in the previous quarter due to reduced summer construction demand amid heatwaves and heavy rains—surged 27 points, supported by reduced imported raw material cost burdens following FX stabilization and entry into the autumn peak season.
Despite the improvement in corporate sentiment, 60.4 percent of companies expected their full-year operating profits to fall short of targets set at the beginning of the year. The primary reason cited was rising production costs, including raw materials and energy (43.2 percent). Other factors included deteriorating sales and order conditions (24.9 percent), rising labor costs and hiring difficulties (11.7 percent), and foreign exchange volatility (6.8 percent).
Kang Min-jae, Head of the Economic Policy Team at KCCI, stated, "Although the manufacturing BSI rose for two consecutive quarters due to gains in key sectors and improved sentiment among exporting and domestic firms, 6 out of 10 companies still anticipate missing their operating profit targets," adding, "As rising production costs emerge as the greatest corporate bottleneck, policy support is essential to stabilize raw material supply chains and alleviate energy cost burdens to improve business conditions."
sh@yna.co.kr
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Source Text
Source: Yonhap News (September 27, 2026)
** This article was translated from Korean.