Consumer sentiment in South Korea hits 4-year high

A consumer browsing through eggs at a supermarket in Seoul Yonhap — A supermarket in Seoul/ Yonhap

SEOUL, June 24 (AJP) - South Korea’s consumer confidence surged to a four-year high in June, lifted by optimism over the launch of a new government and expectations for a forthcoming supplementary budget, the central bank said Tuesday.

The Bank of Korea reported that its Composite Consumer Sentiment Index (CCSI) rose to 108.7 in June, up 6.9 points from the previous month and marking the highest reading since June 2021, when the index reached 111.1.

The latest increase represents the third consecutive monthly gain and reflects a sharp rebound from December, when the index plummeted 12.5 points following the declaration of martial law by then President Yoon Suk Yeol. Sentiment began to recover in April, when the index stood at 93.8.

Analysts said consumer confidence has been bolstered by President Lee Jae-myung’s proposed supplementary budget, which is aimed at stimulating domestic consumption and reviving economic growth.

All six sub-indices of the sentiment survey improved in June. The outlook for domestic economic conditions posted the largest gain, rising 16 points to 107. The index measuring current economic conditions climbed 11 points to 74.

Expectations for housing prices also surged, with that index jumping 9 points to 120 — its highest level since October 2021, when it hit 125. The monthly increase was the sharpest in more than two years.

Kim Dong-young davekim0807@ajupress.com