South Korean firms' business sentiment slipped to a 34-month low this month amid concerns over the sluggish chip market.

According to the Bank of Korea on Wednesday, the business survey index(BSI) for January for all industries came to 69, down three points from the previous month. A reading below 100 means pessimists outnumber optimists.

The index marks the lowest level since March 2016, when it stood at 68.
 
In particular, manufacturers' business sentiment dropped by four points to 67, the lowest since February 2016 when the number marked 63.

The outlook for February for all industries fell three points to 68, while the comparable figure for manufacturers slipped six points on-month to 65, the lowest since April 2009.