Venture Companies Signal Q4 Recovery... BSI Returns to Baseline After One Year

Performance Index Rises for Second Consecutive Quarter, Reaching 89.9 in Q3
Service Sector Surpasses Baseline at 103.6
Manufacturing Remains Below 100 Due to Sluggish Medical and Pharmaceutical Industries

Venture companies are optimistic about an economic recovery in the upcoming fourth quarter. With expectations for improved domestic sales and a rebound in exports, the Business Sentiment Index (BSI) has returned to the baseline of 100 for the first time in a year. However, the manufacturing sector still falls short of the baseline due to sluggish performance in the medical and pharmaceutical industries, highlighting a clear disparity among different sectors.

According to the '2025 Q3 Venture Business Economic Sentiment Index (BSI)' released by the Venture Business Association on September 29, the Q3 Venture Business Performance Index stood at 89.9, a slight increase of 0.1 points compared to the previous quarter. After rebounding from its lowest point of 78.6 in the first quarter, the index has risen for two consecutive quarters.

Venture Business Association's '2025 Q3 Venture Business Economic Sentiment Index (BSI)'. Venture Business Association

Among the companies that reported improved business performance in the third quarter, 85.6% cited "improved domestic sales" as the main factor. This was followed by "improved exports" at 26.3%, which increased by 7.9 percentage points from the previous quarter's 18.4%, making it a significant driver of improvement. The most notable factor for deteriorating business conditions was "sluggish domestic sales" (85.9%). However, the proportion of companies citing "financial difficulties" dropped by 10.1 percentage points to 30.6%, down from 40.7% in the previous quarter, indicating an easing of financial burdens.

The manufacturing sector's business performance index fell by 0.7 points to 88.2 compared to the previous quarter's 88.9. The medical and pharmaceutical sector, which was the only sub-sector to exceed the baseline (100) in the previous quarter, dropped by 9.1 points to 92.9, resulting in all manufacturing sub-sectors falling below the baseline in the third quarter.

In contrast, the service sector's business performance index rose by 2.2 points to 91.8 from the previous quarter's 89.6. The information and communication & broadcasting services sector saw a 10.8-point increase to 102.1, making it the only sub-sector to exceed the baseline of 100, while wholesale & retail, R&D services, and other services fell by 5.0 points to 87.3 compared to the previous quarter.

The fourth quarter Venture Business Economic Sentiment Index reached 100.0, recovering the baseline for the first time in a year. After remaining below the baseline since the fourth quarter of last year (110.7), the index has continued its upward trend for three consecutive quarters this year, reaching its highest level of the year.

Venture companies expecting "improvement" in the fourth quarter cited "improved domestic sales" (80.6%), "strengthened technological competitiveness" (29.0%), and "improved exports" (22.9%) as the main drivers. Of those anticipating "deterioration," 81.5% pointed to "sluggish domestic sales" as the primary reason for their negative outlook.

Both the manufacturing and service sectors' business outlook indices reached their highest levels of the year, maintaining a solid trend. The manufacturing sector's outlook index increased by 1.1 points to 97.5 from the previous quarter's 96.4, marking a third consecutive quarterly rise, but still remained below the baseline of 100. The service sector's outlook index rose by 1.6 points to 103.6 from 102.0 in the previous quarter.

Lee Jeongmin, Secretary-General of the Venture Business Association, stated, "It is significant that both the venture business performance index and the outlook index have reached their highest levels of the year, indicating that the economic recovery is gaining momentum." However, he added, "The manufacturing sector, led by the medical and pharmaceutical industries, failed to surpass the baseline in both performance and outlook this quarter. Continuous attention and support from the government and the National Assembly are essential for revitalizing and reinvigorating the entire venture industry."

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