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Consumer sentiment improves in May as uncertainty eases, BOK says

Published: 27 May. 2025, 08:55 Updated: 27 May. 2025, 14:37

Food items at a large discount store in Seoul on May 16 [YONHAP]

Korea's consumer sentiment rose to a seven-month high in May, led by eased political uncertainty and optimism over a potential tariff deal with the United States, the central bank said Tuesday.

The composite consumer sentiment index stood at 101.8 this month, up 8 points from April, according to the survey conducted by the Bank of Korea.

It marked the highest level since October, when the index stood at 101.8. Sentiment had since deteriorated, plunging to a low of 88.2 in December following former President Yoon Suk Yeol's imposition of martial law.

Yoon was impeached late December, and formally removed from office last month, setting the stage for the presidential election scheduled to take place next Tuesday.

A reading above 100 means optimists outnumber pessimists, while a reading below the benchmark means the opposite.

The improvement in consumer sentiment was also attributable to negotiations with the United States over the Donald Trump administration's sweeping tariff scheme, according to officials.

In April, the United States began imposing reciprocal tariffs on trade partners, including a 25 percent duty on Korean imports, but soon paused the measures to allow for bilateral negotiations.

The two sides have since agreed to pursue a "July package" deal addressing trade and related issues, aiming to reach an agreement before July 8, when Trump's 90-day suspension of the tariffs is to expire.

Yonhap