What caused South Korean consumer sentiment to decline in October 2026?

The Bank of Korea attributed the decline to a stock market correction and prolonged military tensions in the Middle East. It said pessimistic outlooks increased as these factors weighed heavily on consumer sentiment.

How much did the KOSPI fall in the first three weeks of October, and what concern was behind the decline?

The KOSPI dropped 15.7 percent in the first three weeks of October. The article links the decline to renewed concerns about the future of large-scale artificial intelligence infrastructure investment.

What did the October Bank of Korea survey show about current and future economic conditions?

The current economic conditions subindex was 82, down 1 point from September, while the future economic conditions subindex fell 2 points to 88. The survey covered 2,500 households from Oct. 13 to 20.

Consumer sentiment drops in Oct. on stock market correction, Mideast tensions

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Summary

South Korean consumer sentiment fell in October as a stock market correction and prolonged Middle East tensions weighed on outlooks, the Bank of Korea said Tuesday. The composite consumer sentiment index stood at 105.4, down 1.2 points from September. The KOSPI dropped 15.7 percent in the first three weeks of October amid renewed concerns about large-scale AI infrastructure investment.

Key Facts

The Bank of Korea said readings above 100 indicate that optimists outnumber pessimists, while readings below 100 suggest the opposite.
The subindex for current economic conditions fell 1 point to 82 in October.
The future economic conditions subindex declined 2 points to 88.
The Bank of Korea conducted its survey among 2,500 households from Oct. 13 to 20.

By Yonhap

Published Oct 27, 2026 7:55 am KST

Vegetables on sale at a supermarket in Seoul, Wednesday / Yonhap

Consumer sentiment fell in October due mainly to a stock market correction and prolonged Middle East tensions, the central bank said Tuesday.

The composite consumer sentiment index (CCSI) stood at 105.4 this month, down 1.2 points from September, according to a survey by the Bank of Korea (BOK).

A reading above 100 indicates that optimists outnumber pessimists, while a figure below 100 suggests the opposite.

"Pessimistic outlooks increased as the stock market correction and extended military tensions in the Middle East weighed heavily on consumer sentiment," the BOK said.

The subindex for people's assessment of current economic conditions came in at 82 in October, down 1 point from a month earlier.

The index for people's outlook for future economic conditions also fell 2 points to 88 over the same period.

The benchmark Korea Composite Stock Price Index (KOSPI) dropped 15.7 percent in the first three weeks of October on renewed concerns about the future of large-scale artificial intelligence (AI) infrastructure investment.

The BOK survey was conducted among 2,500 households from Oct. 13-20.

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