Business Sentiment Marks Record Low Since 2016

Business sentiment among Korean companies dropped this month to its lowest level since December 2016. The drop is mainly due to their concerns about the Korean economy compounded by a spike in international oil prices.

According to the Bank of Korea on Monday, the business survey index for October came to just 73, down two points from the month before. A reading below 100 means there are more pessimists than optimists.

Sentiment for next month is also looking grim as many companies say the overall slump in Korea's manufacturing industries resulted in fewer opportunities for investment and employment.

Market analysts also say the rising trade tensions between the U.S. and China are driving sentiment down because many Korean companies rely heavily on exports to these two economies.