Korean spending signals surge as 36-point optimism shift defies 2024 lows

The improved sentiment comes as political tensions stabilise.

South Korea showed an increase in consumer sentiment, with net optimism rising 36 percentage points since the fourth quarter of 2024 (Q4 2024), following political stabilisation, according to a McKinsey & Co. report.

The report cited easing tariff concerns, a growing stock market, and an influx of tourism as key drivers of the increase.

Consumers intending to spend more on toys and vehicles—up five and two percentage points, respectively—also rose, consistent with global year-end shopping trends.

However, intent to spend on overall discretionary goods declined, signalling continued caution.

High-income consumers—those earning more than KR₩120m (US$81,750) annually—showed a 22-percentage-point increase in spending intent from Q4 2024, highlighting potential divides between affluent and mid- to lower-income households.

1 US$ = 1,450 KR₩