"A Warm Outlook for Samsung Electronics and SK Hynix Too" ... Consumer Sentiment Index Rebounds

\r\n[Financial News] South Korean consumers have turned more optimistic about the economic outlook. Inflation remains elevated due to tensions in the Middle East, but strong exports led by semiconductors and a booming stock market had a greater impact.
According to the Bank of Korea (BOK)'s "Consumer Tendency Survey Results for May 2026" released on the 22nd, the Composite Consumer Sentiment Index (CCSI) stood at 106.1 in May. That was up 6.9 points from the previous month’s 99.2. It had fallen below 100 in April for the first time in a year, since April last year, but recovered above that level in just one month. The increase was also the largest in about a year, since June last year, when it rose 6.9 points.
The CCSI is a sentiment indicator calculated using six key sub-indexes from the Consumer Sentiment Index (CSI). The CSI is a statistical measure based on a survey of 2,500 urban households nationwide about their views on economic conditions and expectations for future consumer spending. The survey was conducted from May 8 to 15.
The CCSI uses the long-term average for January 2023 to December 2024 as its benchmark of 100. A reading above 100 indicates optimism, while a reading below 100 indicates pessimism.
Lee Heung-hoo, head of the Economic Tendency Survey Team at the BOK's Economic Statistics Department 1, said, "As optimism increased on the back of continued strong semiconductor-led exports and a booming stock market, the CCSI turned upward for the first time in three months." He added, "However, looking at the broader picture, the index has swung sharply since the Middle East war, reflecting high uncertainty. We need to keep an eye on energy supply and demand and on semiconductor export conditions."
In terms of perceptions of household finances, the Current Living Conditions CSI and the Consumer Sentiment Index for Future Living Conditions came in at 93 and 97, respectively, up 2 points and 5 points from the previous month. The Prospective Household Income Index and the Consumer Spending Outlook CSI both rose 2 points to 100 and 110.
Perceptions of the economy also improved. The Current Economic Assessment CSI and the Consumer Sentiment Index for Future Economic Conditions rose 15 points and 14 points from the previous month to 83 and 93, respectively. In particular, the increase in the former was the largest in 5 years and 7 months, since October 2020, when it rose 16 points.
The Employment Opportunities Outlook CSI rose 6 points to 88. The Interest Rate Outlook CSI fell 1 point to 114. This indicator had been revised upward every month since October last year, when it moved from 93 to 95, but it edged down this time.
As for perceptions of household savings and debt, the Current Household Savings Consumer Sentiment Index rose 3 points to 99, while the Household Saving Prospects Composite Sentiment Index rose 2 points to 102. The Current Household Debt CSI was unchanged from the previous month at 99, while the Household Debt Outlook CSI fell 1 point to 97.
In perceptions of price conditions, the Consumer Price Outlook CSI fell 2 points from the previous month to 151, while the Housing Price Outlook CSI rose 8 points to 112. It had seemed to ease in March, when it fell to 96, but it has risen for two consecutive months. The Expected Wage Level CSI also rose 2 points to 122.
Lee said, "Regarding the rise in housing prices, the resumption of the heavy capital gains tax on multi-home owners from the 10th appears to have reduced the number of apartment listings, especially in Seoul." He added, "As jeonse prices rise, some of that demand may also be shifting to home purchases."
Perceptions of consumer inflation over the past year stood at 3.0%, up 0.1 percentage point from the previous month. The expected inflation rate for the next 1 year was 2.8%, down 0.1 percentage point from the previous month. For both the 3-year and 5-year horizons, the figure was 2.6%. Across all time frames, the share of responses in the 2% to 3% range was the highest, at 26.9%, 29.4%, and 29.5%, respectively.
When asked which items would most affect consumer prices over the next year, respondents cited petroleum products (85.2%) first, followed by public utility fees (31.2%) and industrial goods (29.5%). Those shares fell by 3.6 percentage points, 0.2 percentage point, and 3.6 percentage points, respectively, from the previous month.
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taeil0808@fnnews.com Kim Tae-il Reporter