Jeju Consumer Sentiment Recovers to 100, but Chuseok Reality Is “There Is No Next Job in Sight”

[Financial News, Jeju — Reporter Jeong Yong-bok] Jeju Province’s consumer sentiment recovered to the benchmark level of 100 after one month, but the economy still felt sluggish on the ground during the Chuseok holiday. Construction businesses and related industries voiced concerns about their next jobs, while households and self-employed business owners worried about living costs and their ability to spend.
According to the Bank of Korea Jeju Branch and other sources on the 27th, Jeju Province’s Consumer Composite Sentiment Index (CCSI) stood at 100.9 in September, up 3.1 points from 97.8 the previous month. It exceeded the long-term average of 100 again after one month. However, the nationwide CCSI was 106.6 during the same month, 5.7 points higher than Jeju Province’s.
Jeju Province also trailed the nation in every detailed indicator. Current living conditions stood at 88 in Jeju Province and 92 nationwide, while the outlook for living conditions was 93 and 98, respectively. The household income outlook was 99 in Jeju Province and 102 nationwide. The consumer spending outlook was 104 in Jeju Province, six points below the nationwide figure of 110.
The assessment of current economic conditions was 80 in Jeju Province and 83 nationwide, while the outlook for future economic conditions was 86 and 90, respectively. Although the composite index recovered to the benchmark, a clear gap with the nation remained in assessments of living conditions and the economy.
Residents met on the ground during the Chuseok holiday expressed similar sentiments.
Jeon Man-ho, 53, who works in the insurance industry, said, "When I meet people, I hear more often that spending money feels burdensome than that the economy has improved. Insurance also requires households to have enough financial leeway to take out new policies or expand their coverage, but these days, people are much more focused on reviewing their existing expenses rather than taking on new ones."
The burden of high prices also remains. Consumer prices in Jeju Province rose 3.1% in August from the same month last year. The living-cost price index, calculated based on items residents frequently purchase, also increased 3.1%.
In the September Consumer Survey, the expected price level stood at 142, far above the benchmark of 100. This means more consumers expect prices to rise than to fall.
Jeon said, "Even if statistical data show that the economy has improved somewhat, people who run businesses can feel that the economy is better only when people actually start opening their wallets."
In industries linked to construction and development, attention was focused less on consumption than on the “next job.”
Kim Jae-hong, 57, a director at Jeju construction company Chungam Enterprise, described the conditions he was experiencing on the ground, saying, "The construction market is struggling." Kim added, "New orders are harder to secure than before, and even when we win a project, it is difficult to be optimistic about profitability after factoring in material, labor and financing costs. Completing the projects we are working on now is important, but I am more concerned about how much work will continue to come in the future."
Construction businesses typically pay upfront for materials, labor and equipment after securing an order and then collect payments as the work progresses. As a result, new orders, construction costs and cash flow are critical management variables. If the decline in new construction and civil engineering projects continues for an extended period, the impact could reach not only builders but also related contractors in areas such as electrical and telecommunications work.
Yang Seung-cheol, 53, who handles environmental impact assessment work at environmental engineering company Sandeul N, also voiced concerns about future work.
Yang said, "Since the housing construction market turned downward, the number of new contracts has visibly declined, and we often hear from people around us that there is less work."
He continued, "New construction and civil engineering projects have to emerge for work to be generated in design services and environmental impact assessments. I am more worried about how many new projects will emerge in the future than about the projects currently underway."
The slowdown in construction does not end with builders. When apartment construction, tourism development, and road and civil engineering projects move forward, they generate work across a range of industries, including design, surveying, environmental impact assessment, engineering, electrical and telecommunications construction, and construction materials. If new development projects decline, related industries could also be affected after a time lag.
Official employment figures were comparatively better. The number of employed people in Jeju Province stood at 415,000 in August, up 12,000 from the same month last year. The employment rate rose 2.1 percentage points to 71.9%, while the unemployment rate fell 0.5 percentage points to 0.8%.
The housing market continues to face pressure. At the end of July, the number of unsold homes in Jeju Province stood at 3,303, up 394 from 2,909 a month earlier. Of these, 2,364 were completed but unsold homes, accounting for 71.6% of all unsold homes.
A buildup of completed but unsold homes can delay construction companies’ recovery of funds and weigh on the launch of new projects. If the sluggish private housing market persists, the possibility that its effects will spread to related industries such as design, environmental impact assessment and construction should also be considered.
The economic trend observed in Jeju Province this Chuseok is difficult to explain in one simple direction. Consumer sentiment has risen above 100 and employment indicators have improved, but industrial sites are also experiencing consumer sentiment below the national level, price pressures, accumulated unsold homes and declines in new contracts.


[email protected] Jeong Yong-bok Reporter