South Korea Economic Temperature

Employment 30%

Overall unemployment remains low and employment is still growing, but limited job gains and a youth unemployment rate of 6.8 percent leave the job market feeling cool.

Real income & cost 25%

Household real income is growing only modestly, while headline inflation of 3.1 percent and core inflation of 3.4 percent match or exceed recent wage growth and keep purchasing power under pressure.

Consumption & confidence 20%

Consumer confidence remains above its long-term average but has fallen, while a 2.4 percent monthly drop in retail sales and a lower propensity to consume show that households remain cautious.

Housing 15%

Seoul apartment prices and rents continue to rise and spread into some non-core districts, while higher mortgage rates make the housing market warm but increase the burden on buyers.

Business environment 10%

Strong exports and semiconductor demand have pushed manufacturing sentiment into expansion, while confidence among non-manufacturers and small businesses remains below neutral.

SemiconductorsHighestMost watched

Hot · AI infrastructure demand and higher memory prices drove semiconductor exports to a record in August, putting the industry in a distinctly hot boom.

Real estateMost watched

Warm · Seoul apartment prices and rents continue to rise and spread across districts while mortgage costs climb, keeping real estate warm and closely watched.

ConstructionLowestMost watched

Cold · Construction output continued to fall in July and the outlook among small construction firms remained weak, making construction the coldest listed industry.

Young people

Cold · Youth unemployment has risen to 6.8 percent and job opportunities continue to shrink, while higher housing and living costs leave young people in distinctly cold conditions.

White-collar workers

Cool · Overall employment remains fairly stable, but inflation is matching or outpacing nominal wage growth, limiting white-collar workers' purchasing power, pay gains, and room to change jobs.

Small business owners

Cool · Non-manufacturing confidence remains below neutral, retail sales have fallen, and the small-business outlook stands at only 84.8, leaving owners under continued demand and cost pressure.

First-time homebuyers

Cold · Seoul apartment prices and rents continue to rise while new mortgage rates have increased for several months, sharply worsening down-payment and monthly-payment pressures for first-time buyers.

ChatGPT

Strong semiconductor exports and real-income growth keep the economy near normal, but youth employment, retail, construction, and 3.1 percent inflation leave ordinary people feeling cautious.

Claude

South Korea's semiconductor-led economy is sharply divided, with large exporters thriving while weak youth employment, real wages, small businesses, inflation, and mortgage costs weigh on ordinary households.

DeepSeek

Record semiconductor exports are lifting growth and business sentiment, but falling real wages, inflation above 3 percent, worsening youth employment, and rising home prices leave ordinary people feeling cool.

Gemini

Export-led manufacturing is supporting a mild recovery, but elevated home prices and inflation continue to pressure household living costs and consumer confidence.

Qwen

Record semiconductor exports and low overall unemployment provide support, but higher prices, weak youth employment, and rising Seoul home prices and mortgage rates are adding to household burdens.