Seoul, Jan 27 (IANS) Business sentiment in South Korea fell slightly in January, despite strong exports, due mainly to worsening sentiment in the non-manufacturing sector following the dissipation of year-end base effects, a central bank survey showed on Tuesday.

The Composite Business Sentiment Index (CBSI) for all industries stood at 94 this month, down 0.2 point from December, according to the survey conducted by the Bank of Korea (BOK), reports Yonhap news agency.

The index had risen for two consecutive months to reach 94.2 in December, its highest level since July 2024, before slipping back in January.

The reading for nonmanufacturers fell 2.1 points to 91.7, while the index for manufacturers rose 2.8 points to 97.5.

A reading below 100 indicates that pessimists outnumber optimists.

“The sentiment among manufacturers improved on the back of increased exports, but that among nonmanufacturers deteriorated due to the fading of year-end seasonal factors,” a BOK official said.

In December, Black Friday promotions and an increase in Chinese tourists during the winter holiday season, among other factors, helped boost retail sales and nonmanufacturing activity, the official added.

The survey, conducted earlier this month, covered 3,255 companies, including 1,815 manufacturers.

Meanwhile, South Korean stocks traded sharply higher late Tuesday morning in the face of U.S. President Donald Trump’s threat to hike tariffs on Korean imports such as automobiles.

After opening lower, the benchmark Korea Composite Stock Price Index (KOSPI) shot up 67.56 points, or 1.36 percent, to 5,017.15 as of 11:20 a.m.

Trump said in a social media post that he’s raising “reciprocal” tariffs and auto tariffs on South Korea to 25 percent from 15 percent, arguing that the South Korean legislature has not yet completed a domestic process to implement a bilateral trade deal.

Investors brushed off rekindled tariff uncertainties, expecting the issue would be a short-term jitter rather than lead to a long-term correction. Tech shares led the market advance.

—IANS

na/