South Korea will ease export restrictions currently imposed on diesel starting in November on condition that domestic supply remains stable, the industry ministry said on Thursday.

The Ministry of Trade, Industry and Resources said the government will allow diesel exports of up to 110 percent of the volume recorded in the same month a year earlier, up from the current cap of 100 percent.

The higher cap will apply only when oil refiners fulfill their domestic supply obligations and maintain adequate inventories, the ministry added, reports Yonhap news agency.

South Korea adopted export restrictions on fuel products when it implemented the oil price cap system in March to maintain stable domestic supply. Local oil refiners have recently called for such restrictions to be eased.

The industry ministry said crude supplies remain stable, citing crude import volumes for October and November equivalent to at least 100 percent of last year's monthly average.

"With tensions in the Middle East lingering, the government will closely monitor the supply of petroleum products and immediately reinstate the previous cap should further supply concerns arise," a ministry official said.

Meanwhile, South Korea's business sentiment rose to a more than four-year high in October, driven by solid confidence in manufacturing and an improved outlook in non-manufacturing, a central bank survey showed on Thursday.

The Composite Business Sentiment Index (CBSI) for all industries stood at 104.2 in October, up 5.1 points from the previous month, according to data from the Bank of Korea (BOK).

The reading marked the highest level since August 2022, when the index recorded 105.5 after the COVID-19 pandemic.

The index measures corporate outlooks on overall business conditions, with a reading below 100 indicating that pessimists outnumber optimists.

"Increased investment and production in major sectors, including semiconductors, automobiles and shipbuilding, boosted related upstream industries," a BOK official said. "A strengthening Korean won also helped local firms ease the financial burden of purchasing imported raw materials."

The CBSI among manufacturers climbed 6.1 points on-month to 105.6 in October, marking the highest point in more than four years since June 2022, when the reading stood at 107.1.

The manufacturing index had surpassed the 100 mark for the fourth consecutive month after topping the threshold in May for the first time since August 2022 but dropped to 99.5 in September.