Business sentiment in South Korea weakened in March, with the Bank of Korea’s corporate survey index showing a slight decline for all industries and a sharper fall in firms’ near-term outlook. The deterioration reflects rising raw-material costs and heightened uncertainty from Iran-related U.S.–Israel clashes, which have pushed up oil and commodity prices, according to the Korea Times and Bank of Korea data.

March CBSI results at a glance

The 한국은행 corporate business survey index (CBSI) for all industries registered 94.1 in March, a 0.1-point decrease from the previous reading. Within the breakdown, manufacturing held at 97.1, while non-manufacturing slipped to 92. Separately, the April forward-looking measure — the April outlook index — fell more sharply to 93.1, down 4.5 points, signaling weaker expectations among firms for the coming month.

| Category | March index | Movement |
|—|—:|—|
| All industries (CBSI) | 94.1 | Down 0.1 point |
| Manufacturing | 97.1 | Unchanged |
| Non-manufacturing | 92 | Fell (movement not quantified) |
| April outlook index | 93.1 | Down 4.5 points |

What is driving the change

Available reports indicate the decline is linked to sustained increases in raw-material and oil prices amid the Middle East crisis. The background notes point to Iran-related clashes involving the United States and Israel that have contributed to commodity price volatility, and this external uncertainty appears to have weighed more heavily on service-sector and other non-manufacturing firms than on manufacturers in March.

Implications for firms and near-term outlook

A small drop in the headline CBSI coupled with a larger fall in the April outlook suggests businesses are becoming more cautious about immediate prospects. While manufacturing remained steady in the month, the deeper fall in non-manufacturing and the sharp deterioration in the forward-looking index imply firms may delay investment or scaling plans until price pressures and geopolitical risks ease.

Reporting and context

These figures and the associated analysis were reported by the Korea Times on 2026-03-27 and reflect data published by the 한국은행. Repeated coverage by the Bank of Korea and major outlets highlights the link between global commodity-price movements and domestic business sentiment amid the ongoing Middle East tensions.