Seoul: South Korea's consumer sentiment rose for the second month in a row in February on hopes for a stable domestic political situation following the martial law chaos and the government's support for industries, a central bank poll showed Thursday.
According to Yonhap News Agency, the composite consumer sentiment index stood at 95.2 this month, up 4 points from the previous month's 91.2, based on the survey conducted by the Bank of Korea (BOK). This marked the second consecutive monthly increase, as the index rebounded in January from a two-year low of 86.6 in December. The downturn in December followed President Yoon Suk Yeol's martial law declaration and subsequent impeachment, events that had significantly impacted the market.
A reading above 100 indicates that optimists outnumber pessimists, while a reading below 100 suggests the opposite. The latest poll revealed that consumers anticipate improved economic conditions due to eased political instability and government measures aimed at supporting exporters and other industries in the face of intense global competition.
The BOK had previously predicted a 1.9 percent expansion of the South Korean economy in 2025, a slowdown from the 2.2 percent growth recorded last year. However, BOK chief Rhee Chang-yong has suggested the possibility of further reducing this forecast to approximately 1.6 percent, as the country grapples with challenges such as tariffs imposed by the new Donald Trump administration and weak domestic demand.