Stock Market Swings, Prices Surge... Wallets Are Closing

Consumer sentiment, which had improved for three straight months, stumbled amid a correction in the domestic stock market and accumulated inflation. Despite a solid real economy, households became more pessimistic about their financial situation and the broader economy, dragging down overall sentiment.
According to the results of the August 2026 Consumer Tendency Survey released by the Bank of Korea (BOK) on the 25th, the Composite Consumer Sentiment Index (CCSI) stood at 104.5 in August. That was down 2.3 points from the previous month, ending the three-month uptrend that began in May. Still, the reading remains above the long-term average of 100, based on the period from January 2003 to December 2025, suggesting a relatively optimistic outlook.
Kim Se-yong, head of the Economic Tendency Survey Team at the BOK's Economic Statistics Department 1, explained that "despite the solid real economy, sentiment weakened due to the domestic stock market correction and accumulated inflation."
Looking at perceptions of household finances, the current living conditions CSI and the expected living conditions CSI both fell by 1 point from the previous month to 92 and 97, respectively. The household income outlook CSI, at 100, and the consumer spending outlook CSI, at 109, also each declined by 1 point. Views on both current and future economic conditions were pessimistic. The current economic conditions CSI fell 5 points to 79, while the future economic outlook CSI dropped 3 points to 89.
As for perceptions of household savings and debt conditions, the current household savings CSI fell 3 points to 94, while the household savings outlook CSI remained unchanged at 100 from the previous month. In particular, the former was the lowest since May last year, when it stood at 93, marking its weakest level in one year and three months.
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