South Korean business sentiment turned as bad as in the aftermath of the 2008 global financial crisis in March as the COVID-19 pandemic has wreaked havoc on corporate activities and economic prospects at home and abroad.

The Bank of Korea business survey index slipped 9 points to 54 in March, the lowest reading since February 2009. In the previous month when the virus broke out in staggering pace in Korea, the index dipped 11 points.

The business survey index shows how companies judge the current business conditions and their outlook, based upon opinion poll. A reading below 100 means more business are pessimistic than optimistic, whereas a figure above 100 means the opposite.

For March, the survey was conducted on 3,696 companies from March 16 to 23, with an 85.5 percent response rate.

The business sentiment of manufacturers slipped 9 points to 56, the lowest level since March 2009.

Car makers turned most pessimistic, with index sinking 15 points to 41, as COVID-19 disrupted global supply chains and put a halt to factory operations across the world. The index for machinery and equipment makers fell 16 points to 52 because of slowing orders from memory chip makers and transportation companies.

By size, the reading for large manufacturers retreated 7 points to 65, and 12 points to 46 for smaller producers.

The only gainer was pulp, paper making sector who saw a sharp rise in toilet paper demand amid overseas news of coronavirus hoarding.

The index for non-manufacturers and service providers also dropped 11 points to 53, worst since 2003. The reading for wholesale and retail industry plummeted 14 points to 45.

April outlook also was grim across all business sectors. The index tumbled 16 points to 53, the worst since February 2009.

The economic sentiment indicator, which combines business confidence level and consumer sentiment index, dived 23.5 points to 63.7, the worst since January 2009. The cyclical economic sentiment indicator, with seasonal fluctuations and other irregular components removed, inched down slipped 4.2 points to 77.4, the lowest since March 2009.

The bank said the exponential growth in facial mask sales barely helped to lift the overall business sentiment, given their small volume compared to others.

By Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]