46 Months of Gloom: South Korea BSI January 2026 Outlook Hits 95.4
South Korea's BSI for January 2026 remains pessimistic at 95.4, marking the 46th month of negative outlooks. Construction and steel sectors continue to drag the market down.
South Korea's business engine is struggling to find its spark. Business sentiment among the nation's top companies has remained pessimistic for a staggering 46 consecutive months, marking the longest stretch of negative outlooks since April 2022. According to the Federation of Korean Industries (FKI), the South Korea BSI January 2026 outlook for the top 600 firms stood at 95.4.
South Korea BSI January 2026: Sector Performance Breakdown
A reading below the 100 benchmark indicates that pessimists outnumber optimists. The manufacturing sector is particularly hard-hit, dropping slightly to 91.8 from the previous month. Within this space, the steel and petrochemical industries are dragging down the average with readings of 85.2 and 86.2, respectively.
The Construction and Steel Slump Correlation
The FKI pointed out that the continued slump in the construction and steel sectors is creating a ripple effect across the economy. "While the South Korean economy is projected to post improved growth in 2026, business sentiment hasn't recovered yet," said Lee Sang-ho, head of FKI's economic and industrial division. He emphasized the need for government-led restructuring in key heavy industries.
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