In late November, the Bank of Korea reported that South Korea’s consumer confidence had surged to its highest level in eight years. The lift was driven by a new tariff deal with the United States and stronger-than‑anticipated growth in the most recent quarter.
The composite consumer sentiment index rose to 112.4 this month, an increase of 2.6 points from October, according to the bank’s survey. This reading tops the November 2017 peak and stands as the first rise in three months.
Up through August the index had climbed for five straight months, buoyed by robust exports and a hopeful view of the government’s supplementary budget. However, the two following months saw a dip as worries about a potential slowdown in exports—linked to U.S. tariff policies—and a slump in construction took a toll. A figure above 100 signals that optimism outweighs pessimism, while a value below 100 indicates the opposite.
The bank noted, “The increase was mainly attributable to the tariff agreement with the U.S. and the third‑quarter gross domestic product growth exceeding expectations.”
After extended talks over President Trump’s aggressive tariff stance, Seoul and Washington signed a deal and issued a joint statement earlier this month outlining South Korea’s $350 billion investment in the United States in exchange for a cut in U.S. tariffs from 25 percent to 15 percent.
During the July–September quarter, real GDP grew by 1.2 percent versus the prior quarter, the fastest quarterly expansion since the first quarter of 2024, according to BOK statistics. The result also surpassed the bank’s 1.1 percent forecast.
— LatestNewsX
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