Last Year, Monthly Average Household Spending Was 2.46 Million Won... Expenditure Scale Varies Fourfold by Income Level

Statistics Korea Announces 2019 Annual Household Expenditure Survey Results

[Sejong=Asia Economy Reporter Kim Hyunjung] Last year, the average monthly consumption expenditure per household was found to be around 2.46 million KRW. However, when examined by income quintile, the expenditure scale showed a difference of more than four times.

According to the "2019 Annual Household Expenditure Survey Results" announced by Statistics Korea on the 7th, the lowest 20% income group (1st quintile), earning less than 1.647 million KRW per month on average, spent 1.024 million KRW monthly on average, whereas the highest 20% income group (5th quintile), earning more than 6.272 million KRW per month on average, consumed 4.221 million KRW monthly on average, marking a 4.1 times difference in consumption between these two groups.

This difference in consumption amount appears to be influenced by household characteristics by income quintile. The 1st quintile had an average household size of only 1.41 persons and a household head age of 61.9 years, which is relatively high, while the 5th quintile had a larger average household size of 3.30 persons but a younger household head age of 49.4 years.

Looking at the consumption expenditure proportions, the 1st quintile showed the highest shares in food and non-alcoholic beverages at 19.9% (203,000 KRW), housing, water, electricity, and fuel at 19.5% (200,000 KRW), and health at 12.9% (132,000 KRW). In contrast, the 5th quintile's highest shares were in food and accommodation at 14.2% (598,000 KRW), transportation at 12.8% (541,000 KRW), and education at 11.9% (504,000 KRW).

Excluding non-consumption expenditures such as income tax, health insurance premiums, national pension, and interest costs from household expenditures, the nationwide average nominal monthly consumption expenditure per household was calculated at 2.457 million KRW. The expenditure proportions were food and accommodation at 14.1% (346,000 KRW), food and non-alcoholic beverages at 13.5% (333,000 KRW), transportation at 12.0% (296,000 KRW), and housing, water, electricity, and fuel at 11.3% (277,000 KRW). By household size, the average monthly consumption expenditures were 1.426 million KRW for single-person households, 2.074 million KRW for two-person households, 2.981 million KRW for three-person households, 3.718 million KRW for four-person households, and 4.074 million KRW for households with five or more persons.

By expenditure proportion by category, single-person households had the highest share in housing, water, electricity, and fuel (17.9%), while two-person households had the highest in food and non-alcoholic beverages (16.0%). On the other hand, four-person households and households with five or more persons, which tend to have more school-age children, had the highest education expenditure shares at 15.8% and 15.1%, respectively. Looking at consumption expenditure per household by household head age, those in their 40s spent the most at 3.198 million KRW, while those aged 60 and above spent 1.659 million KRW. Those in their 50s spent 2.844 million KRW, and those aged 39 or younger spent 2.44 million KRW.

Regarding consumption expenditure proportions, households with heads aged 39 or younger spent the most on food and accommodation (16.8%) and transportation (14.0%), households in their 40s spent the most on education (15.5%) and food and accommodation (14.1%), and households aged 60 and above spent the most on food and non-alcoholic beverages (19.5%) and health (13.9%).

Couples living with minor children were found to spend about 1 million KRW more per month than couples living alone. Last year, couples living with unmarried children under 18 had an average monthly consumption expenditure of 3.522 million KRW, whereas couples without cohabiting children (household head under 65) spent 2.597 million KRW. Among consumption expenditures for couples with children, the largest share was food and non-alcoholic beverages and meal expenses (26.4%, 930,000 KRW).

However, it is not possible to compare whether this average consumption expenditure scale increased or decreased compared to last year. This is because Statistics Korea revised the survey method and sample starting in 2019. From 2017 to 2018, both household diaries and annual survey forms were used to survey 1,000 households monthly, totaling 12,000 households annually (1,000 households per month for 12 months in rotation). However, from last year’s statistics, only household diaries were used to survey about 7,200 households over 12 months. Therefore, comparisons from last year onward have become difficult. Statistics Korea stated, "We will thoroughly review next year through research projects whether there are parts that can be linked in time series between 2017-2018 and before 2016 and after 2019," and added, "If the conclusion is that comparison is possible, we will provide data in the future."

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