Gumi Chamber of Commerce and Industry: 2025 Q4 Gumi BSI at 80, Down 4 Points from Previous Quarter

Practical Incentives Needed
Survey Conducted on 102 Manufacturing Companies in Gumi
Below Baseline for Five Consecutive Quarters
Business Conditions Expected to Remain Challenging This Quarter

The Gumi Chamber of Commerce and Industry in North Gyeongsang Province (Chairman: Yoon Jaeho) conducted the "2025 Q4 Business Survey Index (BSI) Outlook Survey" from September 1 to September 12, targeting 102 manufacturing companies in the region.

According to the survey, the BSI (Business Survey Index) outlook for the Gumi area recorded 80, a decline of 4 points compared to the previous quarter (84), remaining below the baseline for the fifth consecutive quarter.

Photo of the exterior of Gumi Chamber of Commerce and Industry / Photo by Lee Ihwan

Among the 102 respondent companies, 42 expected business conditions to remain unchanged, 40 anticipated deterioration, and the remaining 20 forecast improvement. The index in Gumi was higher than the national average of 74, North Gyeongsang Province’s 68, and Daegu’s 60.

By industry, the machinery and metal sector recorded 103, up 16 points from the previous quarter and above the baseline. This appears to be due to increased orders from defense and certain auto parts companies. In contrast, the textile and chemical (67), electrical and electronics (62), and other sectors (88) all remained below the baseline.

By company size, large enterprises recorded 85, while small and medium-sized enterprises recorded 79. In detailed categories, sales (86), operating profit (81), facility investment (89), and financial conditions (85) all fell below the baseline, indicating that business conditions are expected to remain challenging, continuing from the previous quarter.

Meanwhile, the nationwide BSI for the fourth quarter of this year fell by 7 points from the previous quarter’s outlook to 74, with all regions below the baseline. By region, Gwangju (96), Jeju (94), and Seoul (90) showed relatively higher figures, while South Jeolla (60), Daegu (60), Gangwon (65), Busan (66), and North Gyeongsang Province (68) recorded comparatively low scores.

In addition, this survey examined changes in business sentiment due to internal and external factors following the launch of the new government.

First, regarding the "uncertainty in the trade environment such as U.S. tariffs," 57.3% of companies responded that there was no change compared to before, which was the majority. Meanwhile, 31.0% reported an "increase" and 11.7% said "resolved," indicating that companies are experiencing direct and indirect impacts from high U.S. tariffs.

Regarding the burden of business-related laws and regulations, 57.3% responded that there was no change, followed by 37.9% who said the burden had "increased" and 4.8% who said it had "decreased." This shows that the burden on business management is also growing. As for the overall regional economic situation, 50.5% reported "no change," 37.8% "deterioration," and 11.7% "improvement," indicating that the regional economy remains in a sluggish phase.

Chairman Yoon Jaeho stated, "Externally, high U.S. tariffs and protectionism are dealing a direct blow to the domestic steel and automobile industries. Internally, companies are struggling with a rigid labor market, labor shortages, stagnant domestic demand, high inflation, and entrenched low growth. In particular, local companies, which have poorer infrastructure and market access compared to the Seoul metropolitan area, are facing a double burden. Therefore, practical incentives such as differentiated application of corporate, inheritance, and income taxes for non-metropolitan regions should be implemented."

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