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South Korea Consumer Confidence Hits 8-Year High After Tariff Deal and Growth Beat

A Bank of Korea survey taken Nov. 11–18 ties the jump to tariff relief from Washington alongside faster third-quarter growth, with inflation expectations holding steady.

Overview

  • The Composite Consumer Sentiment Index rose to 112.4 in November, up 2.6 points from October and the highest since November 2017.
  • Bank of Korea officials attributed the rebound primarily to the finalized U.S.–Korea tariff agreement and stronger-than-expected third-quarter GDP.
  • The joint fact sheet outlines roughly US$350 billion in South Korean investment in the United States in exchange for a U.S. tariff cut from 25% to 15%.
  • Survey subindexes improved, with current economic conditions rising to 96 from 91 and the outlook for future conditions climbing to 102 from 94.
  • Inflation expectations stayed anchored at 2.6% for one year and eased to 2.5% for three- and five-year horizons, while a separate BOK survey showed business sentiment at a one-year high of 92.1.