South Korea business sentiment hits near 4-year high in August: BOK
Synopsis
South Korea's corporate mood is the brightest it has been since before the post-COVID hangover set in. The BOK's CBSI hit 99.6 in August — a near four-year peak — with manufacturers above the optimism threshold for a fourth straight month and the September outlook jumping 3.1 points. The question now is whether Nvidia's earnings and the AI cycle can sustain the global tailwind that South Korean chipmakers are riding.
Key Takeaways
South Korea's CBSI rose 1.1 points to 99.6 in August 2025 , the highest since September 2022 .
The manufacturing CBSI climbed to 103.8 , staying above 100 for a fourth consecutive month .
The non-manufacturing CBSI rose 1.5 points to 96.7 , lifted by summer travel and leisure activity.
The September outlook index jumped 3.1 points to 99.6 , from a prior reading of 96.5 .
The Economic Sentiment Index (ESI) gained 1.5 points to 99.4 for August.
The KOSPI traded up 0.76% at 6,793.78 on 26 August , with markets watching Nvidia earnings closely.
South Korea's Composite Business Sentiment Index (CBSI) climbed to 99.6 in August 2025, its highest level since September 2022, as manufacturing confidence held firm and the summer vacation season lifted the non-manufacturing sector, according to a survey released by the Bank of Korea (BOK) on Wednesday, 26 August. The reading marked a 1.1-point rise from the previous month, signalling that corporate optimism is broadening across South Korea's economy.
Manufacturing Leads the Charge
The CBSI among manufacturers rose 0.6 points to 103.8 in August, staying above the critical 100-mark for the fourth consecutive month. The manufacturing index had first crossed that threshold in May — its first such reading since August 2022 — and has held above it since, suggesting a sustained, not merely seasonal, recovery in factory-floor confidence.
A reading above 100 indicates that optimists outnumber pessimists in the corporate survey. The manufacturing sector's consistent performance above that level over four months is a meaningful signal for an export-driven economy like South Korea's.
Services Sector Buoyed by Summer Season
The non-manufacturing CBSI added 1.5 points to reach 96.7, still below the neutral 100 mark but trending upward. The BOK attributed the improvement to stronger sentiment in transportation, leisure, broadcasting, and film — sectors that typically benefit from peak summer activity. While the services index remains in pessimist territory, the pace of improvement suggests the gap may close further in coming months.
September Outlook Turns Positive
Forward-looking sentiment also brightened: the September outlook index rose 3.1 points to 99.6, up from a prior reading of 96.5. The broader Economic Sentiment Index (ESI), which incorporates both consumer and business confidence, gained 1.5 points to reach 99.4 for August — approaching the neutral threshold and reinforcing the picture of an economy regaining its footing.
Seoul Stocks Trade Higher Amid Nvidia Watch
On the same day, Seoul equities traded in positive territory, with the benchmark Korea Composite Stock Price Index (KOSPI) up 51.04 points, or 0.76%, at 6,793.78 as of 11:21 am local time. Market direction remained choppy, however, as investors adopted a wait-and-see stance ahead of earnings from US chip giant Nvidia — a bellwether for the global artificial intelligence (AI) infrastructure cycle.
Samsung Electronics rose 0.97% and SK Hynix added 1.19%, while Hyundai Motor slid 0.36%, Hanwha Aerospace dipped 2.63%, and LG Energy Solutions edged up 0.14%. The mixed performance among market heavyweights reflected broader uncertainty about the durability of the AI-driven rally.
With business sentiment approaching the neutral mark and the September outlook turning decisively more positive, South Korea's corporate sector appears to be entering the final quarter of the year with cautious but growing confidence.
Point of View
And one that South Korea badly needed after a bruising export cycle. But the services index still sitting below 100 is a reminder that domestic demand has not fully recovered. The real stress test comes in September: if Nvidia's earnings disappoint and the global AI capex cycle wobbles, South Korean chipmakers — and by extension the KOSPI — will feel it first. The BOK's survey captures mood, not momentum; the gap between the two is where the risk lives.
NationPress
26 Aug 2026
Frequently Asked Questions
What is the Composite Business Sentiment Index (CBSI) and what did it show in August 2025?
The CBSI is a Bank of Korea survey measuring corporate outlooks on overall business conditions, where a reading above 100 means optimists outnumber pessimists. In August 2025, it rose 1.1 points to 99.6 — the highest level since September 2022.
Why did South Korea's business sentiment rise in August?
The improvement was driven by sustained confidence in the manufacturing sector, which stayed above the 100-mark for a fourth straight month, and by stronger sentiment in transportation, leisure, and entertainment during the peak summer vacation season.
How did South Korea's manufacturing sector perform in August 2025?
The manufacturing CBSI rose 0.6 points to 103.8 in August, remaining above the neutral 100 threshold for the fourth consecutive month — a streak that began in May 2025, the first such reading since August 2022.
What is the business outlook for September 2025 in South Korea?
The September outlook index jumped 3.1 points to 99.6, up from a prior reading of 96.5, suggesting corporate confidence is expected to remain near the neutral mark heading into the next month.
How were Seoul stocks performing on 26 August 2025?
The KOSPI was trading up 51.04 points, or 0.76%, at 6,793.78 as of 11:21 am local time on 26 August. Markets were cautious ahead of Nvidia earnings, with Samsung Electronics and SK Hynix gaining while Hyundai Motor and Hanwha Aerospace declined.
