A majority of companies in South Korea are upbeat about business conditions for next month due to a U.S. interest rate freeze and other favorable factors, a poll showed Tuesday. 

According to the survey conducted on the country's top 600 companies by the Federation of Korean Industries, the business survey index for October stood at 101.2

A reading above 100 means companies that are optimistic about business conditions down the road outnumber pessimists.

After peaking at 103.7 in March, the figure has been hovering below the benchmark 100.

The FKI attributed the slight improvement in business confidence mainly to the U.S. Federal Reserve's interest rate freeze in mid-September, which helped ease uncertainty in the global financial market.

Other favorable factors are a weak South Korean currency against the U.S. dollar and an expected increase in the number of Chinese tourists to Seoul for the Chinese National Day holiday running from Oct. 1-7.

The respondents are upbeat about domestic demand and investment for October, while expecting worsening conditions for exports, financial health and employment.

"The business sentiment figure has risen above 100 for next month, but it remains to be seen whether it can be interpreted as a sign of economic recovery," Hong Sung-il, a finance strategy director at FKI, said. "Companies should prepare for a U.S. interest rate hike and China's economic instability."

According to a separate survey, the number of exporting companies forecasting overseas shipments will improve in the October-December quarter outnumber those expecting conditions to worsen.

The survey of 602 exporters, taken by the Korea International Trade Association, showed the Export Business Survey Index coming to 100.4 for the upcoming quarter, up from 98.4 in the previous quarter. (Yonhap)