FX.co ★ South Korea Consumer Mood Hits 4-Year High on Reform Hopes

South Korea's Composite Consumer Sentiment Index saw a significant increase in June 2025, climbing to 108.7 from May's figure of 101.8, marking its highest point since June 2021. This surge in optimism can be attributed to heightened confidence in the newly elected President Lee Jae-myung's pledge to tackle the nation's economic challenges and the progress in trade discussions with the United States. The index improvement follows President Lee's unexpected electoral win on June 3 and the recent approval of a supplementary budget worth 13.8 trillion won in May. Trade negotiations between Seoul and Washington are advancing, with the goal of finalizing a tariff agreement by July. All major components of the index, including perceptions of living standards, household income, consumer spending, and the state of the domestic economy, showed improvement. Inflation expectations, meanwhile, remained stable, with projections for one, three, and five years all anchored at 2.4%.