Spending on clothing and footwear in South Korea has dropped to its lowest share of consumer expenditures. (Image courtesy of Yonhap)
SEOUL, Dec. 2 (Korea Bizwire) – Spending on clothing and footwear in South Korea has dropped to its lowest share of consumer expenditures, as domestic demand remains weak and unseasonably warm weather curbs the need for fall apparel.
Data from Statistics Korea shows that in the third quarter of 2024, average monthly consumer spending per household was 2.91 million won. Of this, only 114,000 won was spent on clothing and footwear, marking a 1.6% year-on-year decline and accounting for just 3.9% of total expenditures — the lowest proportion ever recorded.
The decline in clothing’s share of consumer spending is part of a broader trend, dropping from 6.0% in late 2023 to below 4% in the third quarter of 2024. This is a stark contrast to the 7–8% levels seen between 2014 and 2016.
Economic and Environmental Pressures
The reduction in spending reflects both economic and environmental pressures. High inflation and interest rates have led households to cut back on discretionary spending, with significant declines also noted in purchases of automobiles (-24.8%), alcohol (-2.6%), and tobacco (-3.2%).
Climate change is further impacting consumer behavior. Shortened spring and autumn seasons have reduced demand for transitional apparel like light jackets. October’s warmer-than-average temperatures also dampened sales of heating appliances, with retail sales in this category falling 5.9% year-on-year.
Demographic Shifts Add to Challenges
South Korea’s aging population and declining birthrate are contributing to weaker consumption. A shrinking youth and middle-aged demographic has reduced the number of active earners in key consumer groups, further curbing spending on goods.
Experts suggest these trends are likely to persist. “Goods consumption, such as for clothing, cars, and furniture, is more sensitive to interest rates than services,” said Jung Kyu-cheol, head of economic forecasting at the Korea Development Institute.
As South Korea grapples with these structural and economic shifts, the retail sector faces mounting challenges in adapting to changing consumer priorities.
M. H. Lee (mhlee@koreabizwire.com)
