South Korea Consumer Confidence Surges to 106.1 on Exports Rally

South Korea's composite consumer sentiment index climbed to 106.1 in May, marking the sharpest monthly increase in roughly a year and a decisive shift from pessimism to optimism. The Bank of Korea reported the 6.9-point rise from April's reading of 99.2, meaning optimists now outnumber pessimists for the first time in two months. The survey of 2,253 households, conducted between May 8 and May 15, captured broad improvements across multiple metrics. Current living standards sentiment rose to 93, while the outlook for living standards reached 97. Sentiment on current domestic economic conditions surged 15 points to 83, and the economic outlook hit 93. Future household income sentiment reached 100. Two powerful forces drove the rebound. Semiconductor exports spiked 173.5 percent, fueling a significant stock market rally, while first-quarter gross domestic product grew 1.7 percent — the strongest pace in over five years. The Bank of Korea also reported expected inflation rates of 2.8 percent for the coming year and 2.6 percent for both three-year and five-year horizons, suggesting households see price pressures moderating over the medium term.