South Korea consumer confidence at three-month high on chip demand
The benchmark Kospi index has more than doubled from a year earlier
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[SEOUL] South Korea’s consumer confidence climbed in February to its strongest level since November, supported by strong semiconductor shipments and buoyant domestic equity markets.
The composite consumer sentiment index rose to 112.1 in February, according to data released by the Bank of Korea (BOK). The reading marks the highest level since November and remains well above the neutral threshold of 100.
The improvement was driven by stronger assessments of current economic conditions and more optimistic expectations for the outlook, reflecting confidence in export momentum, particularly in semiconductors, and continued strength in the local stock market.
The benchmark Kospi index has more than doubled from a year earlier, helped by sharp gains in semiconductor heavyweights Samsung Electronics and SK Hynix.
In contrast, housing sentiment deteriorated. The sub-index tracking expectations for home prices fell to 108, the lowest level since last April, dropping 16 points from the previous month.
The decline follows government property measures to cool speculative demand and signalling the end to temporary tax relief, including the scheduled expiration of a grace period on capital gains tax surcharges for owners of multiple homes.
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The divergence between firm overall sentiment and softer housing expectations may help ease financial-stability concerns at the central bank, as cooler property expectations could temper household borrowing. The BOK is widely expected to keep its benchmark interest rate unchanged at 2.5 per cent on Thursday (Feb 26) for a sixth straight meeting.
At its January review, policymakers shifted to a more neutral stance, citing risks from elevated household debt and currency volatility.
Still, analysts expect the central bank to lift its 2026 growth forecast to 2 per cent from the 1.8 per cent projected in November, reflecting stronger semiconductor demand driven by the artificial intelligence boom. BLOOMBERG
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