South Korea Consumer Sentiment Falls to 105.4 in October as Stock Volatility Weighs

South Korean consumer sentiment declined in October 2026 as volatile domestic share prices and continuing international tensions weighed on households' views of the economy, according to a new Bank of Korea survey.

The central bank's Composite Consumer Sentiment Index fell 1.2 points from September to 105.4. The index combines responses about households' financial circumstances, spending plans and perceptions of the broader economy. A reading above 100 indicates sentiment above the series' long-term reference average; the October decline nonetheless points to a deterioration from the preceding month.

The component measuring consumers' assessment of current economic conditions decreased one point to 82, while the gauge of expectations for future economic conditions fell two points to 88. The outlook for household income also weakened by one point to 101, according to reporting on the survey.

The Bank of Korea linked the shift to the correction in South Korean equities and continued tensions in the Middle East. A decline in stock prices can influence household expectations even when activity in export-oriented industries remains relatively strong. The survey covered 2,500 households and was conducted from October 13 to October 20.

The result contrasts with the economy's third-quarter advance GDP estimate, also released on October 27, which showed output expanding 1.0% from the previous quarter on strong semiconductor exports and machinery investment. The two measures describe different aspects of the economy: GDP measures production, while the consumer survey records households' perceptions and expectations.

The October reading does not by itself establish that consumer spending will fall in the coming months. It does, however, indicate that gains in technology exports have not fully offset concerns among households about markets and the economic outlook. Future survey readings and spending data will help show whether confidence stabilises.