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South Korea’s consumer sentiment rose sharply in May, buoyed by the passage of a supplementary budget and the U.S. decision to temporarily suspend reciprocal tariffs. According to a consumer trends survey released by the Bank of Korea on May 27, the Composite Consumer Sentiment Index (CCSI) climbed to 101.8—an 8-point increase from the previous month. In the photo, vendors wait for customers at Gyeongdong Market in Dongdaemun District, Seoul, on the afternoon of May 27. / Source: Yonhap News

Consumer confidence in South Korea is picking up in May, buoyed by the recent passage of a supplementary budget, a temporary suspension of reciprocal tariffs by the United States, and growing optimism over the new administration’s economic policy direction.

According to data released by the Bank of Korea on May 27, the Composite Consumer Sentiment Index (CCSI) rose to 101.8, up 8 points from the previous month—marking a return to above-baseline levels that suggest improving outlook among households.

The Current Economic Assessment Index (CSI) rose to 63, climbing 11 points from April. The increase reflects recent developments such as the National Assembly’s approval of the supplementary budget, progress in U.S.-China trade negotiations, and Washington’s tariff reprieve.

The index measuring future economic outlook—Expected Economic Conditions CSI—jumped by 18 points to 91. Analysts attribute the surge to heightened expectations surrounding the newly inaugurated government and anticipated advances in South Korea–U.S. tariff talks.

Meanwhile, the Housing Price Outlook Index climbed to 111, up 3 points from the previous month, reflecting continued upward trends in apartment prices across the greater Seoul area.

Expected inflation over the next 12 months stood at 2.6%, a slight decrease of 0.2 percentage points from April. Despite stable consumer prices overall, the decline was driven by falling costs in petroleum and agricultural products.