South Korea’s Composite Consumer Sentiment Index rose to 110.8 in July 2025, up from 108.7 in June, marking the fourth consecutive monthly gain and the highest reading since January 2018. The improvement reflects growing optimism fueled by the newly elected government and expectations for economic stimulus, including a planned supplementary budget. Confidence was further supported by intensifying trade negotiations with the US ahead of the August 1 tariff deadline, as Seoul’s national security adviser engages in high-level talks in Washington, with another round scheduled for July 25. All major components of the index saw gains, including views on living standards, household income, consumer spending, and the broader domestic economy. Despite global uncertainties, inflation expectations remained stable, with one-, three-, and five-year projections all anchored at 2.4%. The data signals resilient consumer morale backed by political stability and improving policy outlook.