Consumer sentiment in South Korea experienced a notable increase in May, with the composite consumer sentiment index reaching 106.1, marking a 6.9-point surge from April. This rise, reported by the Bank of Korea, is the fastest pace seen in about a year and has surpassed the 100-point threshold for the first time in two months.
The subindex reflecting people’s assessment of current economic conditions rose to 83 in May, showing a substantial 15-point increase from the previous month. Additionally, the index gauging people’s outlook for future economic conditions climbed by 14 points to 93 during the same period. These positive shifts were supported by robust semiconductor exports, South Korea’s strong first-quarter GDP growth of 1.7 percent, and optimistic economic projections by major institutions.
The surge in consumer optimism was further fueled by a significant increase in South Korea’s exports, which expanded by 48 percent year-on-year to US$85.9 billion in the previous month. Notably, semiconductor exports saw a remarkable spike of 173.5 percent, contributing to the overall export boom. This growth in exports also had a positive impact on the stock market, as evidenced by the Korea Composite Stock Price Index (KOSPI) rising from the 6,900-point range at the start of May to over 7,900 by mid-May.
The latest consumer sentiment index by the Bank of Korea was based on a survey of 2,253 households conducted from May 8-15, reflecting the growing optimism among consumers in South Korea.
