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flag South Korea's business sentiment fell in January 2026 due to weaker non-manufacturing activity, despite a slight improvement in manufacturing and consumer outlook.

flag South Korea's business sentiment dipped to 94.0 in January 2026, ending two months of gains, as the non-manufacturing sector weakened following the end of year-end seasonal boosts, according to Bank of Korea data. flag The composite business sentiment index (CBSI) fell 0.2 points, with non-manufacturers reporting a drop to 91.7, while manufacturers improved slightly to 97.5. flag Ongoing concerns included weak domestic demand, economic uncertainty, exchange rate volatility, and high labor costs. flag Despite the dip, the broader economic sentiment index rose to 94.0, reflecting a modest improvement in consumer outlook.

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