The economy felt by venture corporations has rebounded for the first time in a year. A recovery is also expected to continue in the third quarter. However, the business sentiment index (BSI) remains below the benchmark of 100, indicating that the economic sentiment stays at a negative level.

The Korea Venture Business Association reported that, from the 22nd of last month to the 11th of this month, it surveyed 1,200 venture corporations on the business sentiment index, revealing that the second-quarter business performance index increased by 11.2 points (P) from the previous quarter to 89.8, marking a rebound after four consecutive quarters of decline.

The venture corporations business sentiment index is an indicator representing the performance and outlook regarding the economy from the venture business sector. An index above 100 indicates that venture corporations believe the economy is in good condition compared to the previous quarter, while an index below 100 indicates expectations of economic downturn.

Venture Business Performance Index (BSI). /Courtesy of Venture Business Association

Among the corporations that responded that their first-quarter performance 'improved,' ‘domestic sales recovery (79.7%)’ was seen as the main factor for improvement. In contrast, those that reported their first-quarter performance 'worsened' identified ‘domestic sales decline (83%)’ as the key factor.

By sector, the manufacturing business performance index was 88.9, showing a significant increase (+10.5P) compared to the previous quarter (78.4), although it still fell below the benchmark (100). The service sector's business performance index rose to 89.6, increasing by 10.3P from the previous quarter (79.3), but still fell short of the benchmark (100).

By category, all performance indices fell below the benchmark. However, ▲ management performance (92.6, +11.2P), ▲ funding situation (87.6, +7.4P), ▲ expense (87.2, +1.1P), ▲ workforce situation (95.4, +0.9P) all showed increases compared to the previous quarter, indicating a recovery trend.

Venture Business 3rd Quarter Economic Outlook Index (BSI). /Courtesy of Venture Business Association

The venture corporations sector expects to continue the recovery trend into the third quarter. The venture corporations business outlook index (BSI) for the third quarter of 2025 rose by 2.7P to 99.2 compared to the previous quarter (96.5). After hitting a low of 88.9 in the first quarter of this year, it has rebounded for two consecutive quarters, nearing the benchmark level (100).

Among the venture corporations that projected that business conditions would 'improve' in the third quarter, 81.8% cited ‘domestic sales recovery’ as a major contributing factor.

By sector, the manufacturing business outlook index was 96.4, a 1.5 increase compared to the previous quarter (94.9), but it fell short of the benchmark (100) for the third consecutive quarter. The service sector's business outlook index recovered to 102, suggesting an expected improvement in the venture corporations centered around services.

Song Byung-jun, chairman of the Korea Venture Business Association, noted, “The fact that the venture corporations business performance index, which had been declining since the second quarter of last year, turned upwards for the first time in a year is a significant signal of economic recovery,” and added, “Since the third-quarter business outlook index has also increased close to the benchmark, I expect the trend of economic recovery to continue.”