Korea’s business confidence surged for the second quarter, reflecting expectations that the economy may improve gradually in the coming months, according to the results of a survey released Sunday.

The business survey index for the April-June period came to 99, a sharp increase from 77 for the current quarter, said the Korea Chamber of Commerce and Industry.

The poll also marks a rebound from seven straight quarters of BSI contraction.

Business confidence numbers started falling after hitting 128 in the second quarter of 2010.

The online survey checked 2,500 businesses across the country.

A reading below 100 means pessimists outnumber optimists with a reading above the break-even baseline meaning the opposite.

“Signs of recovery in the United States and more stable conditions in eurozone economies have caused businesses to be more optimistic,” the KCCI said.

The country’s largest business organization with 135,000 members, however, said that it has to wait and see if business sentiment will continue to improve, mainly because of the geopolitical risks surrounding Iran’s nuclear program and soaring crude oil prices.

Of companies checked, 30.7 percent were concerned about contraction in demand in the second quarter, with shortages in commodities and a possible liquidity crunch being other concerns.

The latest tally showed BSI numbers for large business conglomerates and exporters reaching 109 and 108, respectively.

This was higher than 98 and 97 reported for small and medium enterprises, and businesses that mostly sell goods on the domestic market.

The KCCI said that the actual BSI, or current conditions for business, in the January-March period stood at 65. 

(Yonhap News)