The Korea Institute of Finance announced that, as of October, the domestic consumer confidence index has dropped 0.4 % from last year and is approaching its lowest level in history. Inflation and rising living costs—especially energy, food, and transportation expenses—have sharply increased household burdens, and consumer sentiment appears to be declining.
The consumer confidence index mainly reflects household spending and living costs, serving as an indicator of overall economic sentiment. The recent decline is largely attributed to the steep rise in energy and food prices, which shows that households are under pressure. In response, financial institutions and firms are adjusting consumer spending and seeking fiscal relief.
To ease the burden on living expenses, the government has proposed expanding subsidies for energy and food, and strengthening financial support for low‑income households. Financial authorities plan to monitor until household costs stabilize while formulating policies to restore consumer confidence.
Overall, the negative impact of rising living costs on consumer confidence is evident, and there is a growing consensus that active responses from the government and financial regulators are needed.