Consumer Sentiment Worsens In March Amid Growth Woes: BOK

(MENAFN- IANS) Seoul, March 25 (IANS) South Korea's consumer sentiment worsened in March amid deepening concerns about growth momentum due to weak domestic demand and slowing exports, the central bank said on Tuesday.

The composite consumer sentiment index stood at 93.4 this month, down 1.8 points from that of February, according to the survey conducted by the Bank of Korea (BOK).

This marked the first decline in three months, as the index had dropped to a two-year low of 88.2 in December, mainly due to President Yoon Suk Yeol's surprising martial law declaration, but rebounded to 91.2 in January and further rose to 95.2 in February, reports Yonhap news agency.

A reading above 100 means optimists outnumber pessimists, while a reading below the benchmark means the opposite.

According to the poll, consumers expect the overall national economic circumstances and the job market to worsen in the months to come, as exports have slowed and the country is forecast to experience weaker-than-expected economic growth this year.

They also have a negative outlook on household income and private spending in the future, the BOK said.

"Concerns about growth momentum have grown, as uncertainties remain high regarding the Trump administration's tariff policy and the domestic political situation," a BOK official said.

The BOK forecasts the South Korean economy to expand 1.5 percent in 2025, slowing from last year's 2 percent expansion.

Meanwhile, South Korean banks' bad loans remained nearly unchanged from three months earlier in the fourth quarter, data showed on Tuesday.

Loans classified as substandard or below (SBL) held by local banks came to 14.8 trillion won (US$10.09 billion) as of end-December, up 0.3 trillion won from three months earlier, according to the data from the Financial Supervisory Service.

The percentage of SBLs to the total outstanding loans came to 0.53 percent at the end of December, unchanged from three months earlier.

The ratio of business loans classified as SBLs stood at 0.65 percent as of end-December, flat from three months earlier, while the ratio for household loans inched up 0.02 percentage point to 0.29 percent, according to the financial regulator.

-IANS

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