South Korea: Retailer confidence sinks for Q2 on inflation, uncertainty
South Korean retailers' business sentiment worsened for the second quarter, weighed down by persistent inflation and rising uncertainties both at home and abroad, data showed on Tuesday.
The Korean Chamber of Commerce and Industry (KCCI) said its retail business survey index (RBSI) stood at 75 for the April-June period, down from 77 in the previous quarter.
The RBSI is based on a poll of 500 retail businesses across the nation. A reading below 100 means that pessimists outnumber optimists, reports Yonhap news agency.
The index has been on a constant decline since the second quarter of last year, highlighting continued pessimism in the retail sector for over a year.
"The decline in business sentiment is due to uncertainties over U.S. trade policy, high inflation, concerns over an economic slowdown and political unrest," the KCCI said.
"The slump in the consumer market has persisted as both internal and external negative factors converge."
Sentiment across all major retail categories remained below par. Department stores and discount stores saw a sharp drop, with their reading falling from 85 to 73 over the cited period. The index for convenience stores declined to 71 from 73.
However, the index for online retailers rose slightly from 74 to 76, while supermarkets edged up from 76 to 77. The survey also found that 49.8 percent of respondents expect a recovery in the consumer market after 2026.
The Bank of Korea recently lowered its economic growth forecast for 2025 to 1.5 percent, revising it down by 0.4 percentage point from its previous outlook.
Meanwhile, Woori Financial Group said on Tuesday it has prepared a large-scale financial support package totalling 10.2 trillion won ($6.98 billion) to help South Korean businesses weather the fallout from reciprocal tariff measures introduced by the United States.
The group said it will expand its liquidity assistance for export-oriented companies, their suppliers and small businesses by launching the new program worth 7.3 trillion won on top of an existing 2.9 trillion-won support scheme for companies.
