Deloitte: "Korean Consumer Financial Anxiety Deepens After Middle East War... Changes in Consumer Market"

Report Published on How the US-Iran War Has Redrawn the Consumer Landscape
Heightened Anxiety and Inflation Concerns Among Korean Consumers

Following the United States-Iran war, the burden of fuel and food prices has increased, leading to growing financial anxiety among Korean consumers, according to recent analysis. The rising cost of living is also triggering structural changes in the consumer market.

On May 21, Deloitte Korea Group announced the publication of its report, "The Consumer Map Transformed by the US-Iran War," which analyzes the effects of the US-Iran war on consumer sentiment and behavior, as well as corporate response strategies. The report is based on Consumer Signals data, which tracks global economic trends and consumer sentiment.

According to the report, overall financial well-being among global consumers has declined since the US-Iran war, with Korean consumers exhibiting particularly pronounced anxiety. The Financial Well-Being Index (FWBI) for Korean consumers fell for three consecutive months, from 98.8 in February 2026 to 96.8 in March, and to a low of 95.8 in April. As of last month, the global index stood at 103.2.

Concerns over inflation have also intensified. The proportion of Korean consumers worried about rising prices increased from 62% in January to 65% in April. Similarly, concerns over food and daily necessity prices rose from 57% to 62% during the same period. Notably, concerns about oil and fuel costs jumped from 55% before the war to 74% after the outbreak of hostilities.

This contraction in consumer sentiment has led to changes in spending behavior. The Food Frugality Index (FFI) for Korean consumers rose to 94.9 after the war. Deloitte analyzed that as the cost of living increased, consumers shifted toward more price comparisons and rational spending standards. In contrast, in the United States, the heightened war crisis led to anticipatory stockpiling of groceries, which actually reduced frugality behaviors.

In terms of travel spending, although global intent to travel generally decreased, more than 70% of Korean consumers continued to express travel demand.

While overall vehicle purchase intent among Korean consumers dropped sharply from 87.7 in January 2026 to 68.5, their intent to purchase electric vehicles remained steady at around 78.0. This suggests that volatility in oil prices and the burden of fuel costs have contributed to a stronger preference for electric vehicles.

The report concluded that the US-Iran war has brought about changes in daily life and the overall consumer landscape that go beyond geopolitical risks. Based on these findings, it proposed five key management strategies: strengthening price and value-for-money strategies; establishing systems to address energy crises; capitalizing on recovery signals after a ceasefire; differentiating responses for global and Korean markets; and enhancing supply chain resilience.

Kim Kyungwon, Leader of Consumer Products & Retail (CP&R) at Deloitte Korea Group (Partner), stated, "War-induced inflation and energy insecurity are acting in tandem, reshaping consumer priorities and the very structure of spending. Companies should closely analyze changes in consumers' cost-of-living burdens and the signals from consumer sentiment to respond more swiftly."

Meanwhile, Consumer Signals data is updated monthly, based on consumers from 17 countries. More details can be found on the Deloitte Korea Group website.

This content was produced with the assistance of AI translation services.