South Korean consumer confidence reaches 8-year high

A traditional marketplace in Seoul crowded with visitors Aug24 2025 Yonhap — A traditional marketplace in Seoul crowded with visitors, Aug.24, 2025/ Yonhap

SEOUL, August 26 (AJP) - South Korean consumer confidence rose in August to its highest level in nearly eight years, buoyed by stronger household spending and robust exports, according to central bank data released Tuesday.

The Bank of Korea’s Composite Consumer Sentiment Index edged up to 111.4 in August from 110.8 the previous month, the fifth straight monthly gain.

The reading was the highest since January 2018, when the index stood at 111.6. A score above 100 signals optimism compared with the long-term average between 2003 and 2024.

The rebound follows a steep 12.5-point drop last December, when the economy briefly froze during the political turmoil surrounding the martial law crisis. Since April, sentiment has steadily improved as financial conditions stabilized.

Assessments of current economic conditions climbed seven points to 93, while views on present living standards rose two points to 96. But expectations for the broader economy declined six points to 100, suggesting lingering uncertainty.

Housing market sentiment also ticked higher, with price expectations rebounding to 111 after a sharp decline in July, when government debt-control measures unsettled the market.

Additional data underscored signs of a spending revival. Korea Credit Data, a financial services firm, reported that small business card sales rose 6.4 percent year-on-year in the four weeks after the government distributed consumer vouchers.

Kim Dong-young davekim0807@ajupress.com