Monthly household expenditure South Korea 2017-2023

In 2023, South Korean households spent an average of approximately 3.81 million South Korea won per month. A large portion of this was attributed to non-consumption expenditures, followed by restaurants and hotels. However, only non-consumption category had the highest growth rate in retail sales in the last year. Due to social distancing rules implemented to combat the spread of COVID-19, South Korean consumers spent more time at home, leading to higher spending on groceries instead of eating out, home appliances, and furniture.

 Grocery shopping

Online grocery shopping is emerging in the South Korean market as a more convenient alternative to in-store shopping. Customers can avoid other people while practicing social distancing and due to most shops offering very fast, often next-day delivery, the time difference of buying groceries directly compared to online is of little importance. On average, most South Korean consumers spend between 30 and 50 thousand South Korean won per purchase when shopping for groceries.

 Impact of COVID-19 on household spending

The outbreak of the coronavirus impacted the composite consumer sentiment index in South Korea gravely. Rather than undertaking large spending, consumers tried to save their money, not knowing how the new circumstances would affect the economy. While the CCSI has since recovered, only suffering decreases with large case surges, the majority of South Koreans stated in a survey that they spend less per purchase than before the pandemic and less frequently.