Business sentiment in South Korea weakened in March, according to the Bank of Korea’s monthly survey: the March 기업경기실사지수(CBSI) for all industries stood at 94.1, a decline of 0.1 point from the previous reading, reflecting rising commodity costs and heightened uncertainty from the ongoing Middle East conflict.

The Bank of Korea conducted the March business survey across 3,223 companies, and its announcement has driven repeated media coverage. While the numerical dip in the headline CBSI was modest, the survey highlights shifting downside pressures that are affecting a broad set of firms rather than a handful of isolated sectors.

Respondents pointed to higher raw material prices and the uncertain outlook linked to the Middle East situation as primary negative factors. Even where exporters—particularly in the IT sector—are seeing stronger external demand, the gains are being partially offset by upward pressure on oil and logistics costs, which squeeze margins and complicate short-term planning for many businesses.

Looking ahead, the survey’s one-month outlook was notably weaker: the April prospective index fell to 93.1, a drop of 4.5 points. That deterioration was uneven across sectors, with manufacturing sentiment at 95.9 and non-manufacturing at 91.2, suggesting service firms are more pessimistic about near-term conditions than their manufacturing counterparts.

The picture that emerges is one of mixed forces. Export momentum in certain high-tech segments provides a positive counterweight, but the combined effect of commodity price increases and geopolitical uncertainty is weighing on overall confidence. Firms are managing a squeeze between demand opportunities and rising input and transport costs, which helps explain the divergence between current activity and forward-looking expectations reported in the CBSI.

These Bank of Korea survey results, released on March 27, 2026, will likely remain a focal point for businesses and analysts watching how external shocks translate into domestic corporate sentiment and cost pressures over the coming months.