[proofplan]
The forward direction is a direct construction: when $\Omega \neq \mathbb{C}^n$, the function $\varphi(z) := |z|^2 - \log \delta_\Omega(z)$ is a sum of plurisubharmonic functions (the first strictly so), is continuous because $\delta_\Omega$ is continuous and positive, and its sublevel sets are bounded and bounded away from $\partial \Omega$, hence compact in $\Omega$. The reverse direction uses the Kontinuitätssatz for continuous families of analytic disks: a continuous plurisubharmonic exhaustion keeps every such family in $\Omega$ when the initial disk lies in $\Omega$ and the boundaries stay in a fixed compact subset of $\Omega$. Applying this disk-family property to the perturbed disks $\zeta \mapsto a + \zeta b + t e^{-(p(\zeta)+\varepsilon)} w$ gives the polynomial-domination inequality for $\delta_\Omega$ along complex lines; letting $\varepsilon \downarrow 0$ yields the subharmonicity of $-\log \delta_\Omega$ on every complex line and hence its plurisubharmonicity.
[/proofplan]
[step:Reduce the forward direction to the case $\Omega \neq \mathbb{C}^n$]
Assume (1). If $\Omega = \mathbb{C}^n$, set
\begin{align*}
\varphi : \mathbb{C}^n &\to \mathbb{R} \\
z &\mapsto |z|^2.
\end{align*}
Then $\varphi$ is smooth and the Levi form $\partial \bar\partial \varphi = \sum_{j=1}^n dz_j \wedge d\bar z_j$ is positive definite, so $\varphi$ is (strictly) plurisubharmonic. For each $c \in \mathbb{R}$, the sublevel set $\{|z|^2 \le c\}$ is the closed Euclidean ball of radius $\sqrt{c}$ (or empty if $c < 0$), which is compact in $\mathbb{C}^n = \Omega$. Hence $\varphi$ is a continuous plurisubharmonic exhaustion, proving (2) in this case. From now on assume $\Omega \neq \mathbb{C}^n$, so $\partial \Omega \neq \varnothing$ and $\delta_\Omega(z) \in (0, \infty)$ for every $z \in \Omega$.
[/step]
[step:Construct $\varphi(z) = |z|^2 - \log \delta_\Omega(z)$ and verify plurisubharmonicity]
Define
\begin{align*}
\varphi : \Omega &\to \mathbb{R} \\
z &\mapsto |z|^2 - \log \delta_\Omega(z).
\end{align*}
The function $z \mapsto \delta_\Omega(z)$ is continuous on $\Omega$ (it is $1$-Lipschitz: $|\delta_\Omega(z) - \delta_\Omega(z')| \le |z - z'|$ for all $z, z' \in \Omega$, by the triangle inequality applied to the infimum defining the distance) and strictly positive on $\Omega$. Hence $-\log \delta_\Omega$ is continuous on $\Omega$, and $\varphi$ is continuous.
By hypothesis, $-\log \delta_\Omega$ is plurisubharmonic on $\Omega$. The function $z \mapsto |z|^2 = \sum_{j=1}^n |z_j|^2$ is smooth with $\partial \bar\partial |z|^2 = \sum_j dz_j \wedge d\bar z_j > 0$, hence is plurisubharmonic. By the [Stability Properties of PSH Functions](/theorems/3404), the sum of two plurisubharmonic functions is plurisubharmonic, so $\varphi$ is plurisubharmonic on $\Omega$.
[/step]
[step:Show $\varphi$ is an exhaustion of $\Omega$]
Fix $c \in \mathbb{R}$ and set $K_c := \{z \in \Omega : \varphi(z) \le c\}$. We show $K_c$ is compact and contained in $\Omega$. Continuity of $\varphi$ already gives that $K_c$ is closed in $\Omega$; we must show it is also bounded in $\mathbb{C}^n$ and bounded away from $\partial \Omega$.
**Bounded away from $\partial \Omega$.** For $z \in K_c$,
\begin{align*}
-\log \delta_\Omega(z) \;=\; \varphi(z) - |z|^2 \;\le\; c - |z|^2 \;\le\; c,
\end{align*}
so $\delta_\Omega(z) \ge e^{-c} > 0$. Hence $K_c \subseteq \{z \in \Omega : \delta_\Omega(z) \ge e^{-c}\}$, which is closed in $\mathbb{C}^n$ and contained in $\Omega$.
**Bounded in $\mathbb{C}^n$.** Fix any $z_0 \in \partial \Omega$ (which exists since $\Omega \neq \mathbb{C}^n$). For $z \in \Omega$ we have $\delta_\Omega(z) \le |z - z_0| \le |z| + |z_0|$, so
\begin{align*}
\log \delta_\Omega(z) \;\le\; \log(|z| + |z_0|).
\end{align*}
Therefore for $z \in K_c$,
\begin{align*}
|z|^2 \;=\; \varphi(z) + \log \delta_\Omega(z) \;\le\; c + \log(|z| + |z_0|).
\end{align*}
Since $|z|^2 - \log(|z| + |z_0|) \to +\infty$ as $|z| \to \infty$, there exists $R_c < \infty$ depending on $c$ and $z_0$ such that $|z| \le R_c$ for all $z \in K_c$.
Combining, $K_c$ is a closed and bounded subset of $\mathbb{C}^n$ contained in the [open set](/page/Open%20Set) $\{\delta_\Omega \ge e^{-c}\} \subseteq \Omega$. By the [Heine–Borel theorem](/theorems/313), $K_c$ is compact in $\mathbb{C}^n$, and since $K_c \subseteq \Omega$, it is compact in $\Omega$. Thus $\varphi$ is an exhaustion, completing the proof of (1) $\Rightarrow$ (2).
[/step]
[step:State and prove the analytic disk lemma for the reverse direction]
We now prove (2) $\Rightarrow$ (1). Assume there exists a continuous plurisubharmonic exhaustion $\varphi : \Omega \to \mathbb{R}$. If $\Omega = \mathbb{C}^n$, condition (1) holds by definition; assume $\Omega \neq \mathbb{C}^n$ for the remainder. Write $\mathbb{D} := \{\zeta \in \mathbb{C} : |\zeta| < 1\}$ for the open unit disk and $\overline{\mathbb{D}}$ for its closure.
[claim:Kontinuitätssatz for continuous disk families]
Let
\begin{align*}
A : [0,1] \times \overline{\mathbb{D}} &\to \mathbb{C}^n
\end{align*}
be continuous. For each $t \in [0,1]$, define
\begin{align*}
A_t : \overline{\mathbb{D}} &\to \mathbb{C}^n \\
\zeta &\mapsto A(t,\zeta).
\end{align*}
Assume $A_t$ is holomorphic on $\mathbb{D}$ for each $t \in [0,1]$, $A_0(\overline{\mathbb{D}}) \subseteq \Omega$, and $A([0,1] \times \partial\mathbb{D})$ is contained in a compact subset of $\Omega$. Then $A_t(\overline{\mathbb{D}}) \subseteq \Omega$ for every $t \in [0,1]$.
[/claim]
[proof]
Set
\begin{align*}
K := A([0,1] \times \partial\mathbb{D}).
\end{align*}
By hypothesis $K$ is contained in a compact subset of $\Omega$, so
\begin{align*}
M := \sup_{z \in K} \varphi(z)
\end{align*}
is finite. Define the sublevel set
\begin{align*}
L := \{z \in \Omega : \varphi(z) \le M\}.
\end{align*}
Since $\varphi$ is an exhaustion, $L$ is compact in $\Omega$.
Let
\begin{align*}
S := \{t \in [0,1] : A_t(\overline{\mathbb{D}}) \subseteq \Omega\}.
\end{align*}
The set $S$ is nonempty because $0 \in S$ by hypothesis. If $t \in S$, define
\begin{align*}
u_t : \overline{\mathbb{D}} &\to \mathbb{R} \\
\zeta &\mapsto \varphi(A_t(\zeta)).
\end{align*}
The map $u_t$ is continuous on $\overline{\mathbb{D}}$. Since $A_t$ is holomorphic on $\mathbb{D}$ and $\varphi$ is plurisubharmonic on $\Omega$, the pullback $u_t$ is subharmonic on $\mathbb{D}$ by the holomorphic-pullback stability of plurisubharmonic functions, as recorded in [Stability Properties of PSH Functions](/theorems/3404). For $\zeta \in \partial\mathbb{D}$ we have $A_t(\zeta) \in K$, so $u_t(\zeta) \le M$. The maximum principle for subharmonic functions gives $u_t(\zeta) \le M$ for every $\zeta \in \overline{\mathbb{D}}$. Hence
\begin{align*}
A_t(\overline{\mathbb{D}}) \subseteq L \qquad \text{for every } t \in S. \tag{1}
\end{align*}
We prove that $S$ is closed in $[0,1]$. Let $(t_k)_{k \ge 1} \subseteq S$ be a sequence with $t_k \to t \in [0,1]$. For each fixed $\zeta \in \overline{\mathbb{D}}$, relation (1) gives $A(t_k,\zeta) \in L$ for every $k$. Since $L$ is compact, hence closed in $\mathbb{C}^n$, continuity of $A$ gives $A(t,\zeta) \in L$. Thus $A_t(\overline{\mathbb{D}}) \subseteq L \subseteq \Omega$, so $t \in S$.
We prove that $S$ is open in $[0,1]$. Let $t \in S$. By relation (1), $A_t(\overline{\mathbb{D}}) \subseteq L$. Since $L$ is a compact subset of the [open set](/page/Open%20Set) $\Omega$, define
\begin{align*}
\eta := \operatorname{dist}(L, \mathbb{C}^n \setminus \Omega) > 0.
\end{align*}
The map $A$ is uniformly continuous on the compact set $[0,1] \times \overline{\mathbb{D}}$. Therefore there exists $\rho > 0$ such that, whenever $s \in [0,1]$ and $|s-t| < \rho$,
\begin{align*}
|A(s,\zeta) - A(t,\zeta)| < \frac{\eta}{2} \qquad \text{for every } \zeta \in \overline{\mathbb{D}}.
\end{align*}
For such $s$ and every $\zeta \in \overline{\mathbb{D}}$, the point $A(s,\zeta)$ has distance less than $\eta/2$ from $L$, and hence belongs to $\Omega$ by the definition of $\eta$. Thus $s \in S$, proving that $S$ is open.
The interval $[0,1]$ is connected, and $S \subseteq [0,1]$ is nonempty, open, and closed. Hence $S = [0,1]$, which proves $A_t(\overline{\mathbb{D}}) \subseteq \Omega$ for every $t \in [0,1]$.
[/proof]
[/step]
[step:Translate the disk property into subharmonicity of $-\log \delta_\Omega$ along complex lines]
To show $-\log \delta_\Omega$ is plurisubharmonic on $\Omega$, we use the following characterization (a definition of plurisubharmonicity, see [Stability Properties of PSH Functions](/theorems/3404)): an upper semicontinuous function $u : \Omega \to [-\infty, \infty)$ is plurisubharmonic iff for every $a \in \Omega$ and every $b \in \mathbb{C}^n$, the slice
\begin{align*}
\zeta \;\longmapsto\; u(a + \zeta b)
\end{align*}
is subharmonic on the open subset $\{\zeta \in \mathbb{C} : a + \zeta b \in \Omega\}$ of $\mathbb{C}$.
The function $-\log \delta_\Omega$ is continuous on $\Omega$ (Step 2), hence upper semicontinuous. We verify the slice condition. Fix $a \in \Omega$ and $b \in \mathbb{C}^n \setminus \{0\}$ (the case $b = 0$ is trivial: the slice is the constant $-\log \delta_\Omega(a)$). Pick $r > 0$ with $\overline{D_r} := \{a + \zeta b : |\zeta| \le r\} \subseteq \Omega$. Define the parameter disk and its closure by
\begin{align*}
\mathbb{D}_r &:= \{\zeta \in \mathbb{C} : |\zeta| < r\}, &
\overline{\mathbb{D}_r} &:= \{\zeta \in \mathbb{C} : |\zeta| \le r\}.
\end{align*}
A continuous function $u : \overline{\mathbb{D}_r} \to \mathbb{R}$ is subharmonic on $\mathbb{D}_r$ iff for every polynomial $p \in \mathbb{C}[\zeta]$ with $u(\zeta) \le \operatorname{Re} p(\zeta)$ on $|\zeta| = r$, the same inequality holds on $|\zeta| \le r$. Indeed, the forward implication follows by applying the maximum principle to the subharmonic function $u - \operatorname{Re} p$. Conversely, real parts of complex polynomials give the harmonic extensions of trigonometric polynomials on $\partial\mathbb{D}_r$, and trigonometric polynomials are uniformly dense in continuous real-valued boundary data; therefore the polynomial majorant condition implies the usual harmonic-majorant characterization of subharmonicity.
So fix a polynomial $p \in \mathbb{C}[\zeta]$ satisfying
\begin{align*}
-\log \delta_\Omega(a + \zeta b) \;\le\; \operatorname{Re} p(\zeta) \qquad \text{for all } |\zeta| = r,
\end{align*}
i.e. $\delta_\Omega(a + \zeta b) \ge e^{-\operatorname{Re} p(\zeta)} = |e^{-p(\zeta)}|$ on $|\zeta| = r$. We must show
\begin{align*}
\delta_\Omega(a + \zeta b) \;\ge\; |e^{-p(\zeta)}| \qquad \text{for all } |\zeta| \le r. \tag{$\ast$}
\end{align*}
Fix $\varepsilon > 0$ and define the shifted polynomial $p_\varepsilon \in \mathbb{C}[\zeta]$ by $p_\varepsilon(\zeta) := p(\zeta) + \varepsilon$. For each unit vector $w \in \mathbb{C}^n$ with $|w| = 1$ and each $t \in [0,1]$, define
\begin{align*}
\Delta_{w,\varepsilon,t} : \overline{\mathbb{D}_r} &\to \mathbb{C}^n \\
\zeta &\mapsto a + \zeta b + t e^{-p_\varepsilon(\zeta)} w.
\end{align*}
The combined map $(t,\zeta) \mapsto \Delta_{w,\varepsilon,t}(\zeta)$ is continuous on $[0,1] \times \overline{\mathbb{D}_r}$, and for each fixed $t$ the map $\Delta_{w,\varepsilon,t}$ is holomorphic on $\mathbb{D}_r$.
On the boundary $|\zeta| = r$,
\begin{align*}
|\Delta_{w,\varepsilon,t}(\zeta) - (a + \zeta b)|
&= t |e^{-p_\varepsilon(\zeta)}| |w| \\
&\le e^{-\varepsilon} |e^{-p(\zeta)}| \\
&\le e^{-\varepsilon} \delta_\Omega(a + \zeta b) \\
&< \delta_\Omega(a + \zeta b).
\end{align*}
Thus $\Delta_{w,\varepsilon,t}(\zeta)$ lies in the open ball centered at $a + \zeta b$ with radius $\delta_\Omega(a + \zeta b)$, which is contained in $\Omega$ by the definition of the boundary distance. Hence the boundary image
\begin{align*}
\{\Delta_{w,\varepsilon,t}(\zeta) : t \in [0,1],\ |\zeta| = r\}
\end{align*}
is a compact subset of $\Omega$. Also $\Delta_{w,\varepsilon,0}(\overline{\mathbb{D}_r}) = \overline{D_r} \subseteq \Omega$.
After the affine change of variables $\zeta = r\tau$, define
\begin{align*}
A_{w,\varepsilon} : [0,1] \times \overline{\mathbb{D}} &\to \mathbb{C}^n \\
(t,\tau) &\mapsto a + r\tau b + t e^{-p_\varepsilon(r\tau)} w.
\end{align*}
The preceding paragraph verifies the hypotheses of the Kontinuitätssatz for continuous disk families proved in Step 4. Therefore
\begin{align*}
a + \zeta b + t e^{-p_\varepsilon(\zeta)} w \in \Omega
\end{align*}
for every $|\zeta| \le r$, every $t \in [0,1]$, and every unit vector $w \in \mathbb{C}^n$.
Fix $|\zeta| \le r$. Since every vector $v \in \mathbb{C}^n$ with $|v| \le |e^{-p_\varepsilon(\zeta)}|$ can be written as $v = t e^{-p_\varepsilon(\zeta)}w$ for some $t \in [0,1]$ and some unit vector $w \in \mathbb{C}^n$ (with $t=0$ when $v=0$), the closed ball of radius $|e^{-p_\varepsilon(\zeta)}|$ around $a + \zeta b$ is contained in $\Omega$. Hence
\begin{align*}
\delta_\Omega(a + \zeta b) \ge |e^{-p_\varepsilon(\zeta)}| = e^{-\varepsilon}|e^{-p(\zeta)}|.
\end{align*}
Letting $\varepsilon \downarrow 0$ gives ($\ast$).
[/step]
[step:Conclude plurisubharmonicity of $-\log \delta_\Omega$ and finish the equivalence]
By Step 5, for every $a \in \Omega$, every $b \in \mathbb{C}^n$, and every $r > 0$ with $\{a + \zeta b : |\zeta| \le r\} \subseteq \Omega$, the function
\begin{align*}
\zeta \;\longmapsto\; -\log \delta_\Omega(a + \zeta b)
\end{align*}
satisfies the polynomial-harmonic-majorant criterion on $\{|\zeta| \le r\}$ and is therefore subharmonic on $\{|\zeta| < r\}$. Define the slice domain
\begin{align*}
S_{a,b} := \{\zeta \in \mathbb{C} : a + \zeta b \in \Omega\}.
\end{align*}
The affine map $\zeta \mapsto a + \zeta b$ is continuous and $\Omega$ is open, so $S_{a,b}$ is open in $\mathbb{C}$. For any $\zeta_0 \in S_{a,b}$, choose $\rho > 0$ such that $\{\zeta_0 + \eta : |\eta| \le \rho\} \subseteq S_{a,b}$. Applying Step 5 with base point $a_0 := a + \zeta_0 b$, direction $b$, and parameter variable $\eta$ shows that $\eta \mapsto -\log \delta_\Omega(a_0 + \eta b)$ is subharmonic on $\{|\eta| < \rho\}$. Equivalently, $\zeta \mapsto -\log \delta_\Omega(a + \zeta b)$ is subharmonic in a neighborhood of $\zeta_0$. Since $\zeta_0$ was arbitrary, the slice is subharmonic on its full domain.
Combined with the continuity (hence upper semicontinuity) of $-\log \delta_\Omega$ on $\Omega$ (Step 2), the slice characterization of plurisubharmonicity invoked in Step 5 gives that $-\log \delta_\Omega$ is plurisubharmonic on $\Omega$. Hence $\Omega$ is pseudoconvex, establishing (2) $\Rightarrow$ (1).
The two implications together yield the equivalence (1) $\Leftrightarrow$ (2), completing the proof. $\blacksquare$
[/step]