Seoul: Business sentiment in South Korea has reached a nine-month high this August, driven by reduced uncertainties due to a significant tariff agreement with the United States, as revealed by a central bank survey.

According to Yonhap News Agency, the Composite Business Sentiment Index (CBSI) for all industries increased to 91.0 in August, a rise of 1.4 points from the previous month, based on data from the Bank of Korea (BOK). This marks the highest level since November 2024, when the index was at 91.8, and it is the first increase observed in three months.

The CBSI is a crucial indicator of corporate outlooks on overall business conditions, with readings below 100 suggesting that pessimists outnumber optimists. Specifically, the CBSI among manufacturers rose by 1.4 points to 93.3 in August, while the index for non-manufacturers increased by 0.7 points to 89.4. The outlook for all industries in September also improved, climbing 3.4 points to 91.8, according to the survey.

A BOK official highlighted that the easing of tariff-related uncertainties, following successful negotiations with the U.S., has notably benefited exports, especially in the semiconductor and automobile sectors. Moreover, conditions in the non-manufacturing sector have improved, particularly in transportation, warehousing, and retail, supported by the summer holiday season and government stimulus measures.

The tariff deal between Seoul and Washington, finalized in late July, saw the U.S. reduce "reciprocal tariffs" for South Korea to 15 percent from a proposed 25 percent. In exchange, South Korea pledged to invest US$350 billion in the U.S. The survey, which included 3,300 companies-1,843 of which are manufacturers-was conducted earlier this month, as stated by the BOK.