Korean households expected to spend less in 2025, survey finds

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Korean households expected to spend less in 2025, survey finds

Published: 19 Dec. 2024, 10:18 Updated: 19 Dec. 2024, 18:03

People shop for groceries at an Emart supermarket in central Seoul. [YONHAP]

Households in Korea are expected to reduce their spending by an average of 1.6 percent in 2025 from this year, a poll showed Thursday.

According to the survey of 1,000 adults conducted by Mono Research from Nov. 13-20, 53 percent of respondents said they plan to reduce their spending next year, while 47 percent indicated an increase.

When asked about the rate of change in spending, the average was recorded at minus 1.6 percent. The poll was commissioned by the Federation of Korean Industries.

By income level, those in the bottom 60 percent expected a decline in spending, while those in the top 40 percent anticipated an increase.

"Lower-income households are more sensitive to the impacts of inflation and economic downturns, leading to a tendency where spending decreases more significantly," the federation said.

Reasons cited for reduced spending included high inflation at 44 percent, reduced income at 15.5 percent and tax burdens at 8.5 percent.

Yonhap