South Korea’s all-industry business sentiment rose 1.1 points to 99.6 in August, its highest level since September 2022, when the Bank of Korea’s index stood at 102.0. The increase reflected solid manufacturing confidence and an improved outlook for nonmanufacturing sectors, including transportation, leisure, broadcasting and film, during the peak summer vacation season. Manufacturing sentiment rose 0.6 point to 103.8, remaining above the neutral 100 mark for a fourth consecutive month, while nonmanufacturing sentiment increased 1.5 points to 96.7. The outlook for September climbed 3.1 points to 99.6, and the broader economic sentiment index, which combines business and consumer sentiment, rose 1.5 points to 99.4. A separate Federation of Korean Industries survey showed the outlook among South Korea’s 600 largest companies by revenue turning positive in September, with its Business Survey Index reaching 102.0. Manufacturing and nonmanufacturing both moved above the neutral line as optimism spread beyond exports and semiconductors to domestic demand and other industries. The FKI attributed part of the improvement to a more stable won-dollar exchange rate and expectations for stronger consumption and logistics demand ahead of Chuseok, while warning that policy support was needed to convert improved sentiment into investment and consumption.