Koreans Are Spending Less Across All Age Groups, New Report Finds | Be Korea-savvy

Koreans Are Spending Less Across All Age Groups, New Report Finds


A quiet scene at Namdaemun Market, where foot traffic has noticeably declined. Merchants say business has slowed so much that even ordering delivery meals has become a financial burden. (Yonhap)

A quiet scene at Namdaemun Market, where foot traffic has noticeably declined. Merchants say business has slowed so much that even ordering delivery meals has become a financial burden. (Yonhap)

SEOUL, June 2 (Korea Bizwire) — South Koreans are spending a smaller share of their income than they did a decade ago, signaling deeper shifts in household behavior amid demographic and economic changes, according to a new report released by the Korea Chamber of Commerce and Industry (KCCI).

The report, titled “Changes in Consumption Propensity by Generation and Its Implications,” analyzed household income and spending data from Statistics Korea’s surveys conducted in 2014 and 2024. It found that while income has generally risen across most age groups over the past decade, consumption has not kept pace—leading to a notable decline in the average propensity to consume (APC).

Nationally, the APC—defined as the percentage of disposable income spent on consumption—fell from 73.6% in 2014 to 70.3% in 2024, a drop of 3.3 percentage points. The steepest decline was seen among those in their 60s, whose APC dropped from 69.3% to 62.4%.

Only those under 30 experienced a decline in both disposable income (from 3.48 million won to 3.47 million won per month) and monthly consumption spending (from 2.48 million won to 2.56 million won).

Consumption patterns have also evolved. Spending on healthcare rose from 7.2% to 9.8%, while entertainment and culture climbed from 5.4% to 7.8%. Other categories showing increased shares included dining and lodging (13.7% → 14.4%) and housing and utilities (11.5% → 12.2%).

South Korea’s middle class continues to experience a prolonged decline in consumer spending. (Image courtesy of Yonhap)

South Korea’s middle class continues to experience a prolonged decline in consumer spending. (Image courtesy of Yonhap)

Meanwhile, spending declined on food and beverages, clothing and footwear, and education—a shift attributed to factors such as aging demographics, the rise of single-person households, and more efficient online and second-hand consumption practices.

“This is not just a reflection of economic downturns,” said Chang Geun-moo, head of the KCCI Distribution and Logistics Promotion Center. “It’s a structural shift influenced by aging, income uncertainty, and evolving consumer psychology. Short-term stimulus alone won’t reverse it.”

Dr. Shin Dong-han of the Korea Institute for Industrial Economics & Trade added that changing consumption habits—marked by greater prudence and selective spending—are as significant as demographic trends.

As South Korea grapples with stagnating consumption, experts urge policymakers to adopt generation-specific, targeted strategies to reignite sustainable domestic demand.

Ashley Song (ashley@koreabizwire.com) 

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