Seoul:South Korea's business sentiment saw an improvement in the fourth quarter of this year, driven by strong exports in the semiconductor and cosmetics sectors.

According to Yonhap News Agency, the business survey index (BSI) for 2,413 manufacturing companies across the nation reached 86 for the October-December period. This marks an increase of 6 points from the previous quarter, as reported by the Korea Chamber of Commerce and Industry (KCCI).

A BSI reading below 100 indicates that pessimists outnumber optimists, whereas a figure above 100 suggests the opposite. The semiconductor sector's index hit 139 for the fourth quarter, marking the highest level since the survey's inception and exceeding the benchmark for the fourth consecutive quarter.

The cosmetics sector index rose by 20 points to 120, while the index for the medical and precision equipment sector increased by 28 points to 108. Despite the improved business sentiment, 60.4 percent of companies anticipate their operating profits for the year will fall short of initial targets, primarily due to increased production costs linked to higher raw material and energy prices.