Business sentiment improved slightly in May on hopes of a recovery in corporate earnings in the semiconductor industry and other key sectors.

According to the Bank of Korea(BOK) on Wednesday, the business survey index(BSI) for all industries posted 76 for May, up four from the previous month.

A reading below 100 means pessimists outnumber optimists.

The BOK said that the uptick in the BSI is attributed to expectations that key sectors and private consumption will improve despite persistent economic uncertainties.

The BSI for manufacturers also rose three points on-month to 73 in May, while the index for non-manufacturing sectors rose by four points on-month to 78.

Meanwhile, local firms' business outlook for June rose by two points on-month, coming in at 76.