South Korea’s economic rebound is failing to lift public confidence, revealing a growing sense of fatigue among consumers in one of Asia’s most advanced economies — and raising questions about how far the global recovery can go without renewed optimism.
A new survey from the Center for Social Value Enhancement Studies (CSES), a Seoul-based nonprofit research institute established by South Korea’s SK Group, shows that South Koreans rated the national economy at just 3.88 out of 10, the lowest since 2020. That comes despite GDP growth of 0.7 percent in the second quarter, marking a clear disconnect between statistical recovery and public sentiment.
For global investors, that gap matters. South Korea’s economy is deeply intertwined with global supply chains in semiconductors, autos, and consumer electronics. When domestic demand weakens and confidence wanes, it can ripple across Asia’s manufacturing and export sectors — areas closely watched by U.S. markets.
The survey also found rising social strain. Only 39.5 percent of respondents identified as middle class, well below government data, and nearly 10 percent said they had no one to rely on, more than double last year’s figure. Civic participation has dropped to 23 percent, suggesting social cohesion — a key factor in long-term stability — is eroding.
Even as household sentiment dims, most respondents said companies should prioritize environmental, social, and governance (ESG) management over growth, a trend that mirrors evolving corporate priorities in the United States and Europe.
