South Korea Consumer Confidence Reaches 7-Month High
2025-05-26 23:29
By
Jam Kaimo Samonte
1 min. read
South Korea’s Composite Consumer Sentiment Index surged to 101.8 in May 2025, up from 93.8 in April, marking its highest level since October 2024 when it last reached the same reading.
The sharp rebound was fueled by easing political uncertainty and growing optimism over a potential tariff agreement with the US.
The jump in sentiment comes ahead of South Korea’s presidential election next week, following the ousting of former President Yoon Suk Yeol.
Yoon was impeached in December after briefly imposing martial law, and was officially removed from office in April.
Meanwhile, trade negotiations with the US have been progressing steadily, with both sides aiming to finalize a tariff deal by July.
All major components of the sentiment index posted strong gains, including perceptions of living standards, household income, consumer spending, and domestic economic conditions.
The expected inflation rate for the year ahead eased to 2.6%, adding further support to consumer confidence.