Korea’s consumer sentiment improves in Jan. on robust stock market, exports

(Yonhap)

South Korea’s consumer sentiment improved slightly in January on the back of strong exports led by semiconductors and rising stock prices.

According to data released by the Bank of Korea on Friday, the country’s composite consumer sentiment index (CCSI) stood at 110.8 in January, up 1 point from 109.8 in December 2025.

The index jumped 2.7 points in November last year, influenced by the conclusion of tariff negotiations and a third-quarter growth rate that exceeded market expectations, before falling 2.5 points in December.

It then rebounded slightly after one month.

The CCSI factors in six major individual indices – current living conditions, prospective living conditions, prospective household income, prospective household spending, current economic conditions, and prospective economic conditions.

A reading above 100 means that people are more optimistic than pessimistic about the economy while vice versa for a reading below 100.

Compared with December, the sub-index of prospective economic conditions posted the largest increase among the six indices, rising 2 points to 98.

The index of prospective household spending gained 1 point to 111, while that of current economic conditions rose 1 point to 90, and current living conditions 1 point to 96.

Prospective household income and prospective living conditions remained unchanged at 103 and 100, respectively.

“The index of prospective economic conditions rose by 2 points due to expectations of continued export growth and government economic growth strategies, while the current living conditions index increased by 1 point amid rising stock prices and a recovery in consumption,” said Lee Hye-young, head of the BOK‘s economic sentiment survey team.

Prospective housing prices index also climbed 3 points to 124, indicating a growing share of consumers expecting home prices to rise over the next year.

“This is the highest level since 125 in October 2021,” Lee noted. “It also remains above the long-term average of 107, suggesting that expectations for rising housing prices are still strong.”

The prospective interest rates index, which reflects expectations for interest rates six months ahead, rose 2 points to 104 in January, influenced by higher market interest rates and weakening expectations for a policy rate cut.

Expected inflation for the following year remained unchanged from the previous month at 2.6 percent.