Gumi City's Business Sentiment Index Rebounds to 96, Up 20 Points from Previous Quarter

Above the National Average, but Still Below the Benchmark
62% of Companies Say "Operating Profit Targets Unmet" This Year

Business sentiment among companies in the Gumi region of North Gyeongsang Province has improved significantly.

However, more than 6 out of 10 companies projected that they would face difficulties achieving this year’s operating profit targets.

Gumi Chamber of Commerce and Industry Building
[Photo by Gumi Chamber of Commerce and Industry]

The Gumi Chamber of Commerce and Industry surveyed 100 local manufacturers between August 20 and September 2, and the Business Survey Index (BSI) for the fourth quarter of 2026 was reported at 96.

This figure represents an increase of 20 points compared to the previous quarter (76), and is 10 points higher than the national average (86).

By industry, the machinery·metal sector recorded 107, electrical·electronics was at 100—either exceeding or meeting the baseline standard of 100.

The textile·chemicals sector posted 81, while other industries were at 87. By company size, large corporations recorded 103, and small and medium-sized enterprises posted 93.

All sub-indices showed improvement: sales stood at 98, operating profit at 89, facility investment at 90, and financial conditions at 73. Although all these figures rose compared to the previous quarter, they remain below the baseline.

Regarding this year’s operating profit target, 62% of companies anticipated “underachieving” their goal, representing the largest share. Achieving the target level accounted for 23%, while exceeding the target was seen by 15%.

The most significant obstacle to meeting targets was the increase in production costs such as raw materials and energy (39%).

Regarding positive factors that companies are expecting, improvement in sales and order conditions was cited most often (48%).

The appropriate average exchange rate between the Korean won and the U.S. dollar was estimated at 1,344.6 won, which is lower than the actual exchange rate at the time of the survey (1,397.7 won). 72% of the respondent companies said they import raw materials or components.

As tasks to invigorate the local economy, the most commonly cited was expanding local investment subsidies and policy finance (26.2%), followed by strengthening tax benefits for local companies (22.3%), easing regulations (21.4%), and addressing labor shortages (18.4%).

Shim Gyujeong, a team leader at the Gumi Chamber of Commerce and Industry, said, "Following major investments in semiconductors and the defense industry, there are now large-scale investments in areas such as AI data centers and robotics. It is necessary to expand investment subsidies, offer further tax support, and establish public-private cooperation models so that large enterprises’ investments will spread across all local companies."

While Gumi's business sentiment index has rebounded, profitability and financial conditions still fall short of the benchmark, making it a challenge to strengthen the link between major investments and local companies.

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