Consumer sentiment is "Kkongkong" due to martial law shock...Worst since the financial crisis

Consumer sentiment has rapidly frozen in the aftermath of emergency martial law and impeachment.

The Bank of Korea surveyed 2,500 households in cities across the country from the 10th, a week after the emergency martial law, to the 17th, after the impeachment of President Yoon Suk Yeol was passed, and the consumer sentiment index was 88.4, down 12.3p from November.

The consumer sentiment index is a comprehensive reflection of sentiment on economic conditions, and this month's 12.3p drop was the biggest since October 2008's 12.6p drop during the global financial crisis.

The central bank explained that consumer sentiment plummeted due to growing political uncertainty and increased volatility in the local financial market.

Uncertainty in the domestic political situation has dampened consumer sentiment, reducing travel, dining out and durable goods, which have all six individual indexes that make up the consumer sentiment index, including the Consumer Expenditure Outlook Consumer Trend Index.

The Bank of Korea explained that the consumer sentiment index fell last month due to concerns over exports and economic slowdown, but the index's decline sharply increased this month due to added political instability.

The BOK predicted that consumer sentiment will improve if political uncertainty is resolved and the political situation stabilizes.