Seoul: South Korea's business sentiment remains pessimistic for December, with local companies expressing concerns over foreign exchange volatility and tariff burdens, a poll showed Friday. The business survey index (BSI) of the country's top 600 companies by sales stood at 98.7 for next month, indicating a persisting sense of unease among the business community.

According to Yonhap News Agency, a reading below 100 on the index signifies that pessimists outnumber optimists, and this has been the case for 45 consecutive months since April 2022. The manufacturing sector's BSI came to 91.9, showing a decline of 4.9 points from November's projection. Within this sector, the machinery and equipment segment posted a positive reading of 119, while the electronics and telecommunication device sector, which includes semiconductors, recorded 111.1.

Conversely, the non-metal material sector and the metal industry posted lower figures of 69.2 and 78.6, respectively. The automobile and transportation equipment sector recorded a BSI of 97.1. On a more positive note, the non-manufacturing sector's outlook was 105.2, crossing the 100 threshold for the first time in five months, driven by anticipated year-end demand.

Among non-manufacturing industries, the utility industry led with a reading of 121.1, followed closely by the leisure, accommodation, and dining sector at 114.3. The construction sector, however, remained below the benchmark with a reading of 95.5.

"While exports maintain a sound trend led by chips, the strong U.S. dollar and tariff burdens continue to weigh down on a majority of industrial sectors," said Lee Sang-ho, head of the federation's economic and industrial division, in the report. He emphasized the need for government intervention to address foreign exchange and tariff issues and to devise strategies to boost the competitiveness of major industries.