Cheonan, South Korea – Cheonan's 8 strategic industries, including semiconductor, display, and automotive, have reported a significant decline in performance during the fourth quarter of 2024, according to the latest survey by the Cheonan Science Industry Promotion Institute.

The survey, which polled 407 companies, revealed that the overall business sentiment index dropped to 79.6 in the fourth quarter, down from 88.0 in the previous quarter. The index, which measures business confidence, has been below the benchmark of 100 for five consecutive quarters since the third quarter of 2023.

The decline was attributed to a combination of factors, including weak domestic demand, sluggish exports, and rising inventory levels. All sectors, except for the bio industry, reported a decrease in performance. The display and smart machinery sectors were particularly hard hit, with their indexes falling by 13.7 and 21.7 points, respectively.

Looking ahead, businesses in Cheonan remain cautious. The survey indicated that the business sentiment index is expected to decline further in the first quarter of 2025. All major sectors, including domestic sales, exports, and investment, are forecast to weaken.

While the bio industry was the only sector to show improvement, its performance remained below the benchmark. The survey also revealed a disparity in performance based on company size. Smaller companies with fewer than 10 employees reported the steepest decline in business sentiment.

The decline in Cheonan's strategic industries underscores the broader challenges facing South Korea's manufacturing sector. As the global economy continues to grapple with uncertainty, businesses in Cheonan will need to find innovative ways to adapt and remain competitive.