FX.co ★ South Korea Consumer Mood Hits 7-Year High in July

In July 2025, South Korea's Composite Consumer Sentiment Index increased to 110.8, up from June's 108.7, marking the fourth consecutive month of growth and reaching its highest point since January 2018. This uptick reflects a surge in optimism, driven by the inauguration of the new government and the anticipated economic stimulus, which includes a proposed supplementary budget. Confidence has been bolstered by ongoing trade discussions with the United States, especially with the impending August 1 tariff deadline. These talks involve Seoul's national security adviser, who is engaged in high-level negotiations in Washington, and another discussion is planned for July 25. Significant components of the index showed improvement, including perceptions of living standards, household income, consumer spending, and the overall domestic economy. Despite global uncertainties, inflation expectations remained steady, with one-, three-, and five-year projections consistently at 2.4%. The data reflects robust consumer confidence, underpinned by political stability and a positive policy outlook.