South Korea consumer confidence dips first time since March on tariffs

[SEOUL] South Korea’s consumer confidence dropped for the first time since March, as concerns over higher US tariffs on the export-dependent economy and persistent weakness in construction weighed on sentiment, the central bank said.

The composite consumer sentiment index fell 1.3 points to 110.1 in September, the lowest since June, according to a Bank of Korea (BOK) report released on Wednesday (Sep 24). The survey-based index remains well above the neutral 100 level, signalling households are still broadly optimistic.

The pullback follows five straight months of gains, with the index hitting its highest since January 2018 in August. While South Korea’s exports have remained resilient this year on strong semiconductor and vehicle sales, fresh 15 per cent US tariffs on South Korean goods and uncertainty over trade talks threaten to sap momentum.

In August, the central bank raised this year’s growth outlook to 0.9 per cent from 0.8 per cent but flagged lingering headwinds, including sluggish construction and mounting household debt tied to a property boom.

A sub-index tracking housing price expectations rose for a second month, climbing one point to 112 as apartment prices in some parts of Greater Seoul extended gains, the BOK said. The outlook for household debt stayed unchanged at 99 for a third straight month. BLOOMBERG