South Korean manufacturers' business sentiment has improved sharply amid hopes that the economy may recover on robust exports and COVID-19 vaccinations.

The Korea Chamber of Commerce and Industry (KCCI) said on Sunday that its recent survey of some 22-hundred manufacturing firms found the business survey index (BSI) for the second quarter came to 99.

The figure represents a surge of 24 points from the previous quarter and the highest level since the third quarter of 2014.

A BSI reading below 100 means companies expecting worsening business conditions outnumber those that anticipate improvements.

The KCCI said that there are growing hopes that the economy will recover as exports grew more than eleven percent on-year over a three-month period from December last year to February this year.

It added that the ongoing COVID-19 vaccination program also appears to be boosting expectations for a recovery in domestic demand.