South Korea’s economy took a hit from wild weather this year, with extreme heat and cold snaps dragging down private consumption growth, according to a new report from the Bank of Korea.
The central bank says these conditions shaved about 0.09 percentage points off the annual growth rate for private spending. A chilly cold wave in the first quarter cut it by 0.03 points, while a scorching summer heat wave pinched it even more at 0.15 points. On the flip side, drier-than-usual weather with below-average rainfall actually boosted consumption by 0.09 points, helping people spend a bit more.
Looking at daily habits, the report highlights how weather keeps shoppers at home. Card spending dropped 7% on blistering hot days when temperatures topped 35 degrees Celsius, compared to normal days. It fell 3% during cold waves with temps at zero or below, and dipped 6% on rainy days with at least 20 millimeters of precipitation.
Bank of Korea analysts based their findings on card spending data and weather patterns from early 2023 through mid-2025 across all 17 provinces. They warn that unusual weather, along with shifting work hours and patterns, could keep South Korea’s consumption trends unpredictable in the coming months.
Shifting to brighter news on the markets, South Korean stocks climbed more than 1% in late morning trading Monday, fueled by fresh optimism about another interest rate cut from the U.S. Federal Reserve.
The main KOSPI index rose 40.09 points, or 1.18%, to 3,426.14 by 11:20 a.m. This came after U.S. stocks bounced back Friday on stronger-than-expected consumer spending in August, raising hopes for more Fed easing.
In Seoul, big names led the charge. Samsung Electronics shares jumped 1.68%, while chipmaker SK hynix surged 3.05%. Internet powerhouse Naver soared 7.99%, and Shinhan Financial Group gained 2.17%. K-pop giant Hybe edged up 0.37%, and instant noodle leader Samyang Foods added 0.61%.
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