Business sentiment in S.Korea improves on cheap oil, weak currency

Confidence among South Korean businesses improved for two straight months due to cheap oil and weak currency, central bank data showed Monday.

Business survey index (BSI) for manufacturers stood at 77 for March, up 3 points from a month earlier, according to the Bank of Korea (BOK). It marked the second straight month of increase.

The index, which gauges expectations for business conditions, means that pessimists outnumber optimists when it stays below 100.

The improved business sentiment came as lower oil prices and the South Korean currency's slide to the U.S. dollar boosted expectations for profit gains especially among exporters.

The BSI for large corporations climbed 6 points in March from a month earlier, with the figure for exporters rising 8 points to 81.

The prospective BSI for April declined 2 points from a month earlier to 80, indicating the remaining uncertainties at home and abroad.

Local manufacturers picked weak domestic demand as the largest obstacle to doing business, as well as economic uncertainties, fiercer competition and sluggish exports.

The March BSI for non-manufacturers rose 2 points from a month earlier to 70. The April figure was unchanged at 74.

Non-manufacturers also cited fragile domestic demand as their main difficulty in doing business. They also picked economic uncertainties and fierce competition as difficulties. Enditem