The Venture Business Sentiment Index shows recent trends. (Image courtesy of Korea Venture Business Association)
SEOUL, June 27 (Korea Bizwire) — South Korean venture companies are showing signs of renewed optimism, with overall business sentiment rebounding for the first time in a year, according to data released Thursday by the Korea Venture Business Association.
The Venture Business Survey Index (BSI) for the second quarter rose to 89.8, marking an 11.2-point increase from the previous quarter and ending a year-long downward trend. A BSI reading above 100 indicates improving conditions, while a figure below 100 signals deterioration.
The recovery was largely attributed to improved domestic sales (79.7%) and strengthened technological competitiveness (24.2%), according to companies surveyed. The survey, conducted from May 22 to June 11, included responses from 1,200 venture firms.
Manufacturing ventures saw their BSI rise to 88.9, up 10.5 points after three consecutive quarters of decline. Among manufacturing sectors, only the medical and pharmaceutical industries surpassed the benchmark with a score of 102.0. Other segments such as food, textiles, and machinery remained below 100.
In the services sector, the BSI rose to 89.6, supported by gains in retail, R&D, and IT-related services. All key business indicators—including performance (92.6), financial health (87.6), cost burdens (87.2), and workforce conditions (95.4)—showed improvement compared to the previous quarter.
Korean Venture Firms See First Business Sentiment Uptick in Four Quarters (Image supported by ChatGPT)
Looking ahead, the outlook for the third quarter also improved, with the forecast BSI climbing to 99.2. Manufacturing is expected to post a 96.4, while the service sector is projected to hit 102.0. Business performance was the only indicator expected to exceed the benchmark, at 104.5.
Despite the upward trend, concerns remain over tightening liquidity. The proportion of firms citing “favorable financing conditions” as a growth driver dropped significantly from the previous quarter.
“This shift to a positive trajectory after a year of decline is a meaningful signal of economic recovery,” said Song Byung-jun, chairman of the Korea Venture Business Association. “However, the decline in perceived financial ease is worrying. We hope the new administration will take active steps to support venture firms as vital engines of national growth.”
M. H. Lee (mhlee@koreabizwire.com)
