Venture Companies' Economic Outlook for Q2 "Bright"... Fifth Consecutive Quarter of Growth

Both Manufacturing and Service Sectors Rise Together

Management Performance Up by 16.1 Points

Domestic venture companies have expressed a positive economic outlook for the second quarter of this year. This is interpreted as a reflection of expectations for a recovery in the domestic market.

According to the Korea Venture Business Association on March 30, the Venture Business Sentiment Index (BSI) for the second quarter of this year was 110.2, significantly exceeding the baseline of 100. This figure represents a 9.4-point increase compared to the previous quarter's 100.8, marking the largest quarterly jump on record. The venture company BSI has now risen for five consecutive quarters.

The BSI is an indicator that reflects companies' perception of the economy; a reading above 100 means more companies expect an economic upturn, while a reading below 100 indicates more companies anticipate a downturn.

The main reason cited for the positive economic outlook in the second quarter was "improved domestic sales" (93%). On the other hand, companies expecting a worsening economy pointed to "sluggish domestic sales" (82.7%), "rising raw material prices" (22.9%), and "difficulties in financing" (22.0%) as major reasons.

By industry, both manufacturing and service sectors surpassed the baseline across the board. In particular, the manufacturing sector—which had been below the baseline since last year—recorded a BSI of 104.4 in the second quarter, entering a recovery phase for the first time in six quarters. The service sector's BSI reached 117.1, up 12.0 points from the previous quarter's 105.1, continuing its upward trend for the fifth consecutive quarter.

By category, "management performance" was viewed especially positively. Management performance rose to 121.2, an increase of 16.1 points from the previous quarter, marking the largest jump among all categories. In addition, "financial conditions" (103.2), "cost expenditures" (103.0), and "personnel situation" (101.3) also reached all-time highs since the survey began.

Meanwhile, the Venture Business Performance Index for the first quarter of this year was 93.2, down 2.1 points from 95.3 in the fourth quarter of last year. The manufacturing sector posted 91.3, a slight increase from the previous quarter's 91.2, while the service sector recorded 96.3, a decline from 100.1 in the previous quarter, showing mixed results.

This content was produced with the assistance of AI translation services.